MONICA BOSWELL v. BIMBO BAKERIES USA, INC.
20-CV-8923 (
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
November 4, 2021
JESSE M. FURMAN, United States District Judge
MEMORANDUM OPINION AND ORDER
JESSE M. FURMAN, United States District Judge:
This case is the latest in a long string of putative class actions brought by the same lawyer alleging that the packaging on a popular food item is false and misleading.1 In this case, Plaintiff Monica Boswell sues Defendant Bimbo Bakeries USA, Inc. (“Bimbo Bakeries“), which owns the Entenmann‘s brand of food products, alleging that the packaging on Entenmann‘s “All Butter Loaf Cake” — a picture of which appears in Appendix A to this Opinion and Order — is misleading because the cake contains not only butter, but also soybean oil and artificial flavors. Bimbo Bakeries now moves, pursuant to
In evaluating a motion to dismiss pursuant to
Boswell‘s principle claims in this case are brought pursuant to Sections 349 and 350 of New York General Business Law. See ECF No. 13 (“FAC“), ¶¶ 78-85. The former prohibits “[d]eceptive acts or practices in the conduct of any business, trade or commerce,”
There are many decisions applying these principles (under New York law or analogous laws of other states) to food and drink packaging that is alleged, as here, to be false or misleading with respect to the product‘s actual ingredients. See, e.g., id. at 637-38 (citing cases); Engram v. GSK Consumer Healthcare Holdings, 19-CV-2886 (EK), 2021 WL 4502439, at *3 (E.D.N.Y. Sep. 30, 2021) (same); see also Davis v. Hain Celestial Grp., 297 F. Supp. 3d 327, 334 (E.D.N.Y. 2018) (same); In re: 100% Grated Parmesan Cheese Mktng. & Sales Pracs. Litig., 275 F. Supp. 3d 910, 923 (N.D. Ill. 2017) (same). As relevant here, these cases yield a standard that distinguishes between two categories of packaging: first, packaging with a prominent label that is unambiguous and misleading; and second, packaging with a prominent label that is ambiguous, but the ambiguity is resolved by reference to the list of ingredients or a Nutrition Facts panel. In the 100% Grated Parmesan Cheese case, for example, Judge Feinerman explained “the rule” as follows:
Where a plaintiff contends that certain aspects of a product‘s packaging are misleading in isolation, but an ingredient label or other disclaimer would dispel any confusion, the crucial issue is whether the misleading content is ambiguous; if so, context can cure the ambiguity and defeat the claim, but if not, then context will not cure the deception and the claim may proceed. . . . In other words, while a reasonable consumer, lulled into a false sense of security by an unavoidable interpretation of an allegedly deceptive statement, may rely upon it without further investigation, consumers who interpret ambiguous statements in an unnatural or debatable manner do so unreasonably if an ingredient label would set them straight.
275 F. Supp. 3d at 922 (citations omitted). “This distinction,” Judge Feinerman continued, “rests on the principle that, when product descriptions are merely vague or suggestive, every reasonable shopper knows the devil is in the details.” Id. at 923 (cleaned up); see also, e.g., Davis, 297 F. Supp. 3d at 334 (“If a plaintiff alleges that an element of a product‘s label is misleading, but another portion of the label would dispel the confusion, the court should ask whether the misleading element is ambiguous. If so, the clarification can defeat the claim.“).
The Second Circuit‘s decision in Mantikas is a good example of a case involving
Judge Feinerman‘s decision in the 100% Grated Parmesan Cheese case is illustrative of the other category of cases. The plaintiffs there challenged the labeling on various grated parmesan cheese products, all of which bore prominent labels “stating ‘100% Grated Parmesan Cheese’ or some similar variation,” but contained non-cheese ingredients, including “cellulose, an organic polymer with no nutritional value that is often used as a filler.” 275 F. Supp. 3d at 915 (internal quotation marks omitted). Applying the law of various states including New York, Judge Feinerman held that the plaintiffs failed to state a consumer-protection claim because “the description ‘100% Grated Parmesan Cheese’ [was] ambiguous” and the ambiguity was resolved “by the readily accessible ingredient panels on the products that disclose the presence of non-cheese ingredients.” Id. at 923. “Although ‘100% Grated Parmesan Cheese’ might be interpreted as saying that the product is 100% cheese and nothing else,” he explained, “it also might be an assertion that 100% of the cheese is parmesan cheese, or that the parmesan cheese is 100% grated. Reasonable consumers would thus need more information before concluding that the labels promised only cheese and nothing more, and they would know exactly where to look to investigate — the ingredient list. Doing so would inform them that the product contained non-cheese ingredients.” Id. As a result, he held, the defendants’ “labeling and marketing, when viewed as a whole,” were “not deceptive” as a matter of law. Id.
This case falls on the 100% Grated Parmesan Cheese side of the line because the description “All Butter” is ambiguous. Taken literally, the description could be understood to mean that the product is entirely butter — although no reasonable consumer would adopt that reading because the product is obviously not a stick of butter and “All Butter” modifies “Loaf Cake.” Put differently, any reasonable consumer would be aware that the product is, notwithstanding the label “All Butter,” likely to contain other ingredients commonly found in cake, such as flour, sugar, milk, and eggs. See, e.g., Mantikas, 910 F.3d at 638 (noting that “a consumer would ‘be familiar with the fact of life that
In short, like in the 100% Grated Parmesan Cheese case and unlike in Mantikas, reasonable consumers here would not be “lulled into a false sense of security” by the bold lettering on the product‘s package. 100% Grated Parmesan Cheese Litig., 275 F. Supp. 3d at 922. Instead, reasonable consumers would need additional information to understand the meaning of “All Butter” and “would know exactly where to look to investigate — the ingredient list. Doing so would inform them that the product contained” non-butter ingredients, including soybean oil and artificial flavors. Id. at 923; see Appendix B. It follows that Bimbo Bakeries‘s “labeling and marketing, when viewed as a whole, . . . are not deceptive.” 100% Grated Parmesan Cheese Litig., 275 F. Supp. 3d at 923; see, e.g., Axon v. Fla.‘s Nat. Growers, Inc., 813 F. App‘x 701, 705 (2d Cir. 2020) (summary order) (finding that “the district court properly analyzed the . . . packaging as a whole in analyzing whether it was potentially deceptive or misleading“); Engram, 2021 WL 4502439, at *5 (“[W]hen the front of the package is better characterized as ambiguous than misleading, courts looking at the alleged misrepresentations in their full context [] are more likely to grant a motion to dismiss.“); Davis, 297 F. Supp. 3d at 335
(“The label taken as a whole makes clear that the juice was subject to pressure for food safety purposes.“).3
That dooms not only Boswell‘s Section 349 and 350 claims, but also her other claims — for negligent misrepresentation, breaches of express warranty and implied warranty of merchantability, fraud, and unjust enrichment, FAC ¶¶ 86-106 — all of which require proof that the product labeling, taken as a whole, is deceptive. See, e.g., Dashnau, 2021 WL 1163716, at *3; see also Cosgrove v. Blue Diamond Growers, No. 19-CV-8993 (VM), 2020 WL 7211218, at *3 (S.D.N.Y. Dec. 7, 2020) (“[I]f Defendant‘s Product does not misrepresent the contents of the container as a matter of law, all of Plaintiffs’ claims must be dismissed.“); Wallace, 2021 WL 3163599, at *3 (“Because the Court has already determined that the chips’ labeling is unlikely to deceive or mislead a reasonable consumer, these causes of actions are also dismissed for the reasons already stated.“).4 In any event, the remaining claims fall short for a litany of other reasons as well. First, the negligent-misrepresentation claim fails because Boswell fails to allege “the existence of a special or privity-like relationship imposing a duty on the defendant to impart correct information to the plaintiff.” Dashnau, 2021 WL 1163716, at * 8 (citations omitted); see Wynn v. Topco Assocs., LLC, No. 19-CV-11104 (RA), 2021 WL 168541, at *6 (S.D.N.Y. Jan. 19, 2021);
Mazella v. Coca-Cola Co., No. 20-CV-05235 (NSR), 2021 WL 2940926, at *5 (S.D.N.Y. July 12, 2021). Second, the express-warranty claim fails because Boswell does not plausibly plead “All Butter” is an express factual statement amounting to a warranty. See Mazella, 2021 WL 2940926, at *7; see also Factory Assocs. & Exps., Inc. v. Lehigh Safety Shoes Co. LLC, 382 F. App‘x 110, 111-12 (2d Cir. 2010) (summary order). Third, the implied-warranty-of-merchantability claim fails because Boswell does not allege that the loaf cake was unfit for human consumption. See Barreto, 518 F. Supp. 3d at 807; Dashnau, 2021 WL 1163716, at *9. Fourth, Boswell‘s fraud claim does not satisfy the heightened pleading standard imposed by
For the foregoing reasons, Bimbo Bakeries‘s motion to dismiss is GRANTED, and Boswell‘s First Amended Complaint is DISMISSED.5 Moreover, the Court declines to grant Boswell‘s request for leave to file a second amended complaint. See ECF No. 17, at 18. Although leave to amend should be freely given “when justice so requires,”
Broidy Cap. Mgmt. LLC v. Benomar, 944 F.3d 436, 447 (2d Cir. 2019) (internal quotation marks omitted). Here, the problem with Boswell‘s claims is substantive, so amendment would be futile. See, e.g., Roundtree v. NYC, No. 19-CV-2475 (JMF), 2021 WL 1667193, at *6 (S.D.N.Y. Apr. 28, 2021) (citing cases). Moreover, Boswell does not suggest that she is in possession of facts that would cure the problems with her claims. See, e.g., Clark v. Kitt, No. 12-CV-8061 (CS), 2014 WL 4054284, at *15 (S.D.N.Y. Aug. 15, 2014) (“A plaintiff need not be given leave to amend if [it] fails to specify how
The Clerk of Court is directed to terminate ECF No. 14, to enter judgment for Defendant, and to close the case.
SO ORDERED.
Dated: November 4, 2021
New York, New York
JESSE M. FURMAN
United States District Judge
Appendix A
Appendix B
INGREDIENTS: SUGAR, BLEACHED WHEAT FLOUR, EGGS, BUTTER, NONFAT MILK, WATER, FOOD STARCH-MODIFIED (CORN), SOYBEAN OIL, LEAVENING (SODIUM ACID PYROPHOSPHATE, BAKING SODA, MONOCALCIUM PHOSPHATE), GLYCERIN, SALT, SORBITAN MONOSTEARATE, ARTIFICIAL FLAVORS, POTASSIUM SORBATE (PRESERVATIVE), POLYSORBATE 60, XANTHAN GUM, MONO- AND DIGLYCERIDES, PHOSPHORIC ACID, CELLULOSE GUM, SOY FLOUR, COCONUT FLOUR.
