649 F. App'x 424
9th Cir.2016Background
- Plaintiffs (Boris group) filed a putative class action against Wal‑Mart alleging deceptive marketing of two over‑the‑counter products: Equate Migraine Relief (red package) and Equate Extra Strength Headache Relief (green package).
- Both products, plaintiffs allege, contain the same active ingredients in identical amounts, but Equate Migraine is sold at a substantially higher price.
- Plaintiffs brought claims under California law (Unfair Competition Law, False Advertising Law, Consumer Legal Remedies Act), New Jersey Consumer Fraud Act, and New York General Business Law § 349.
- The district court dismissed the complaint under Federal Rule of Civil Procedure 12(b)(6); plaintiffs appealed.
- The Ninth Circuit affirmed, concluding the complaint—based on proximate presentation of differing package color and price despite disclosed ingredients—failed to state a claim.
- The court expressly declined to extend the cited state consumer‑protection doctrines to the theory advanced here and noted plaintiffs waived any request to amend the complaint.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether proximate sale of two products with different packaging color and price, despite ingredient disclosure, violates state consumer‑protection laws | Boris: color + higher price for “Migraine” misleads consumers into paying more for no greater active ingredients | Wal‑Mart: ingredient and quantity are disclosed on labels; no actionable deception as pled | Court: Dismissed; proximate color/price differences alone do not state a claim as pled |
| Whether website allegations survive dismissal | Boris: website practices support deceptive‑marketing theory | Wal‑Mart: website allegations insufficient and tied to same flaw | Court: website claims dismissed with others (plaintiff did not challenge this separately) |
| Whether state laws should be expanded to cover these facts | Boris: seeks protection extension to packaging/color pricing scheme | Wal‑Mart: courts should not extend consumer‑protection statutes absent supporting precedent | Court: Declined to extend protections; cited lack of controlling authority supporting Boris’s theory |
| Whether plaintiff preserved right to amend complaint | Boris: did not press amendment on appeal | Wal‑Mart: notes plaintiff failed to seek leave to amend below | Court: Noted Boris waived amendment argument by failing to seek leave and not briefing amendment on appeal |
Key Cases Cited
- Davis v. HSBC Bank Nev., N.A., 691 F.3d 1152 (9th Cir. 2012) (standing and pleading standards in consumer fraud cases)
- Lozano v. AT&T Wireless Servs., Inc., 504 F.3d 718 (9th Cir. 2007) (interpretation of consumer protection pleading requirements)
- Cel‑Tech Commc’ns, Inc. v. L.A. Cellular Tel. Co., 973 P.2d 527 (Cal. 1999) (scope of California Unfair Competition Law)
- Turf Lawnmower Repair, Inc. v. Bergen Record Corp., 655 A.2d 417 (N.J. 1995) (New Jersey consumer‑fraud law principles)
- Stutman v. Chemical Bank, 731 N.E.2d 608 (N.Y. 2000) (scope of New York General Business Law § 349)
- Smith v. Marsh, 194 F.3d 1045 (9th Cir. 1999) (waiver of issues and amendment practice on appeal)
