DECISION AND ORDER
On April 20, 2016, Brad Buonasera (“Buonasera”) filed an amended complaint (“Amended Complaint”) on behalf of himself and all others similarly situated (collectively, “Plaintiffs”), alleging four causes of action against The Honest Company, Inc. (“Honest”): (1) violation of New York General Business Law Section 349 (“Section 349”); (2) violation of New York General Business Law Section 350 (“Section 350”); (3) breach of an express warranty; and (4) unjust enrichment. (Dkt. No. 27.)
By letter dated May 9, 2016, Honest requested a pre-motion conference in anticipation of filing a motion to dismiss. (“May 9 Letter,” on file with chambers.) In so doing, Honest attached pré-motion correspondence exchangеd between the- parties including Honest’s letter dated March 15, 2016 and Buonasera’s letter in response dated March 21, 2016. (On file with chambers.)
After reviewing this correspondence, the Court held a pre-motion conference by telephone on June 21, 2016. (“June 21 Telephone Conference,” see Dkt. Minute Entry for June 21, 2016.) On that occasion, the Court indicated that while Honest may have valid grounds for dismissal of the unjust enrichment and injunctive relief claims, the Court was not persuaded that motion practice would be productive, namely because it would not resolve the entire matter. The Court suggested that the parties reserve the issues for the clаss certification or summary judgment stages. Honest requested full briefing on the record before the Court. The Court permitted the-parties to submit an additional round of letter briefing on open issues not sufficiently addressed by the Second Circuit. (See id.)
In response to the Court’s direction, Honest submitted a letter to the Court dated July 6, 2016 regarding the open issues before the Second Circuit. (“July 6 Letter,” Dkt. No. 35.) Honest argues: (1) Buonasera does not have standing to bring suit for products that he did not purchase; (2) the terms, “natural,” “plant-based,” and without “harsh” chemicals, are too vague to be materially deceptive; and (3) the injunctive relief and unjust" enrichment claims should bе dismissed for the reasons
By letter dated July 19, 2016, Buonasera responded to the July 6 Letter. (“July 19 Letter,” Dkt. No. 37.) Buonasera contends: (1) under NECA-IBEW Health & Welfare Fund v. Goldman Sachs & Co.,
The Court now construes the correspondence described above as a motion by Honest to dismiss the Amended Complaint (“Motion”) on the following grounds: (1) lack of subject matter jurisdiction pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure (“Rule 12(b) (1)”) on the basis that Buonasera lacks standing both to bring suit for products that he did not purchase and to seek injunctive relief and (2) failure to state a claim upon which relief may be granted pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure (“Rule 12(b)(6)”) as it relates to the Section 349, Seсtion 350, breach of an express warranty, and unjust enrichment claims. For the reasons discussed below, Honest’s Motion is DENIED in part and GRANTED in part.
I. FACTUAL BACKGROUND
Buonasera is a consumer in New York who purchased Honest’s Conditioning De-tangler and Shampoo + Body Wash products from the Costco store located at 517 East 117th Street, New York, New York during the class period.
Buonasera alleges that Honest falsely, misleadingly, and deceptively labels its products as “natural,” “all nаtural,” “naturally derived,” “plant-based,” and/or containing “no harsh chemicals ever!” when the products contain synthetic and toxic ingredients. In addition to the two products Buonasera purchased, Buonasera alleges that 39 other Honest products contain synthetic or toxic ingredients. The Amended Complaint contains a substantial list of these ingredients.
Buonasera asserts the four causes of action mentioned above and seeks: (1) class certification; (2) declaratory relief; (3)an order for accounting; (4) restitution, disgorgement, refund, and/or other monetary damages, together with costs and disbursements, including reasonable attorneys’ fees and prejudgment interest; (5) injunctive relief; (6) statutory damages; and (7) any other relief the Court deems just and proper.
A. MOTION TO DISMISS PURSUANT TO RULE 12(b)(1)
The inquiry on a motion to dismiss for lack of subject matter jurisdiction under Rule 12(b)(1) concerns whether the district court has the statutory or constitutional power to adjudicate the case. See Makarova v. United States,
B. MOTION TO DISMISS PURSUANT TO RULE 12(b)(6)
“To survive a motion to dismiss [pursuant to Rule 12(b) (6) ], a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal,
III. DISCUSSION
The Court will first consider Honest’s motion to dismiss for lack of standing pursuant to Rule 12(b) (1) because it raises a jurisdictional challenge. See Spiro v. Healthport Technologies, LLC,
A. MOTION TO DISMISS PURSUANT TO RULE 12(b)(1)
1. Buonasera’s Standing for Unpur-chased Products
Relying on the Second Circuit’s decisions in NECA-IBEW Health & Welfare
In NECA-IBEW Health & Welfare Fund, the Second Circuit held, as an initial matter, that the named plaintiffs had Article III standing to sue in their own right for the Certificates they purchased.
But whether NECA has “class standing”—that is, standing to assert claims on behalf of purchasers of Certificates from other Offerings, or from different tranches of the same Offering—does not turn on whether NECA would have statutory or Article III standing to seek recovery for misleading statements in those Certificates’ Offering Documents. NECA clearly lacks standing to assert such claims on its behalf because it did not purchase those Certificates. Because the class standing analysis is different, the district court erred in concluding, based on the fact that NECA purchased just two “particular ... [C]ertificate[s] from ... particular tranche[s] from ... particular [T]rust[s]” that it necessarily lacked standing to assert claims on behalf of purchasers of Certificates from other Trusts and from other tranches within the 2007-10 and 2007-5 Trusts.
Id. at 158; see also In re Frito-Lay N. Am., Inc. All Nat. Litig., No. 12 MD 2413,
The plaintiff in NECA-IBEW Health & Welfare Fund argued that the determination of whether he had class stаnding was best suited for the class certification stage. See
But distilling these cases down to a broad standard for class standing, we believe they stand collectively for the proposition that, in a putative class action, a plaintiff has сlass standing if he plausibly alleges (1) that he “personally has suffered some actual ... injury as a result of the putatively illegal conduct of the defendant,” and (2) that such conduct implicates “the same set of concerns” as the conduct alleged to have caused injury to other members of the putative class by the same defendants.
Id. at 162 (internal citations omitted). To determine whether it implicates the same set of concerns, the Second Circuit instructed courts to look to the “nature and content of the specific misrepresentation alleged.” Id.
In DiMuro v. Clinique Labs., LLC, the Second Circuit utilized this framework to determine whether plaintiffs had standing for four Revlon products they had not purchased. See
Many lower courts have construed the Second Circuit’s findings in NECA-IBEW Health & Welfare Fund and DiMuro to indicate that the issue of class standing should not be resolved on a motion to dismiss but rather on a motion for class certification. See, e.g., Ault v. J.M. Smucker Co., No. 13 Civ. 3409,
For example, in Quinn v. Walgreen Co., after addressing that courts are split as to whether plaintiffs have standing for unpur-chased products that are similar to purchased products, the court stated: “Accordingly, such courts routinely deny Rule 12(b)(1) motions to dismiss and, instead, reserve the standing analysis until a mo
However, other courts have held that resolution of the standing issue is appropriate for a motion to dismiss and have ruled accordingly. See Hart v. BHH, LLC, No. 15 Civ. 4804,
Upon review of the Second Circuit’s precedent on this issue, the Court finds that Buonasera has sufficiently alleged class standing at the motion to dismiss stage. Under NECA-IBEW Health & Welfare Fund, Buonasera has class standing if (1) “he ‘personally has suffered some actual ... injury as a result of the putatively illegal conduct of the defendant,’ and (2) ... such conduct implicates ‘the same set of concerns’ as the conduct alleged to have caused injury to other members of the putative class by the same defendants.”
First, Buonasera has alleged injury by his purchase of the two hair care products that were allegedly misrepresented. (See Dkt. No. 27 at ¶¶ 25-30.)
Regarding the second requirement, “the nature and content of the specific misrepresentation alleged,” NECA-IBEW Health & Welfare Fund,
Therefore, at this stage of the litigation, the Court finds that Buonasera does have standing to seek relief for products he did not purchase and denies Honest’s Motion on this basis. See Hart,
2. Buonasera’s Standing to Seek Injunc-tive Relief
Honest contends that Buonasera lacks standing to seek injunctive relief be
To estаblish standing in federal court, a party must meet the minimum requirements imposed by Article III of the Constitution by alleging an actual case or controversy. See City of Los Angeles v. Lyons,
There is no exception to demonstrating future injury when the plaintiff is pursuing a class action. See Simon v. E. Kentucky Welfare Rights Org.,
Buonasera has not alleged that he will purchase Honest’s products in thе future. The Amended Complaint states that Buo-nasera purchased Honest’s Conditioning Detangler and Shampoo + Body Wash products during the class period but fails to define when the class period ended. However, it is evident that the class period does not continue until the present as Buo-nasera alleges that “ [i]f Honest’s products were reformulated such that its representations were truthful, Plaintiff would consider purchasing Honest’s products in the future.” (Dkt. No. 27 at ¶ 31.) This allega
Accordingly, the Court grants Honest’s Motion on this ground and dismisses Buo-nasera’s request for injunctive relief for lack of subject matter jurisdiction pursuant to Rule 12 (b) (1).
B. MOTION TO DISMISS PURSUANT TO RULE 12(b)(6)
1. Buonasera’s Claims Under Section 349 and Section 350 and for Breach of an Express Warranty
In its July 6 Letter, Honest incorporates the May 9 Letter by reference and argues that several courts have held that certain terms including “natural,” “plant-based,” and without “harsh” chemicals are too vague to be deemed materially deceptive. .(See Dkt. No. 35; May 9 Letter, on file with chambers.) Furthermore, Honest contends that when a claim is too amorphous for a jury to determine on an objectively reasonable basis whether it is true or false, the deceptive advertising claims under Section 349 and Section 350 should be dismissed to avoid the jury making a purely subjective determination.
The Court will first turn to the issue of whether Buonasera has sufficiently pled a claim under Section 349 аnd Section 350.
a. Buonasera’s Section 349 and Section 350 Claims
To establish a prima facie claim under Section 349, a plaintiff must demonstrate that “(1) the defendant’s deceptive acts were directed at consumers, (2) the acts are misleading in a material way, and (3) the plaintiff has been injured as a result.” Quinn,
Regarding the first criterion, Buonasera has alleged in the Amended Complaint that the deceptive acts were aimed at consumers. (Dkt. No. 27 at ¶¶ 14-15, 34-48, 50, 56.) As it relates to the third criterion, Buonasera has alleged that he was injured as a result of the material misstatement because he paid a premium for these products. (Id. at ¶¶ 30, 95); see, e.g., Segedie v. Hain Celestial Grp., Inc., No. 14 Civ. 5029,
Honest’s primary argument for dismissal relates to the second criterion—whether the act is misleading in a material way. To determine whether the act is misleading or deceptive, the act must be “likely to mislead a reasonable consumer acting reasonably under the circumstances.” Quinn,
Courts have generally held that since this second factor requires a reasonableness analysis, it cannot be resolved on a motion to dismiss. See, e.g., Segedie,
The Court therefore finds thаt whether Honest’s products are misleading to a reasonable consumer is a question of fact better suited for the jury. Honest’s Motion is accordingly denied on this basis.
b. Buonasera’s Claim for Breach of an Express Warranty
The Court now turns to Buo-nasera’s claim for breach of an express
2. Buonasera’s Claim for Unjust Enrichment
Finally, Honest seeks to dismiss Buonasera’s claim for unjust enrichment because it is duplicative of his other causes of action. (See Dkt. No. 35.) Buonasera argues that New York law permits a plaintiff to plead unjust enrichment as an independent or an alternative theory of recovery, and the claim should therefore not be dismissed. (See Dkt. No. 37.)
To establish unjust еnrichment, the plaintiff must demonstrate: “‘(1) the other party was enriched, (2) at the other party’s expense, and (3) that it is against equity and good conscience to permit the other party to retain what is sought to be recovered.’ ” Mahoney v. Endo Health Sols., Inc., No. 15 Civ. 9841,
However, under New York law, an unjust enrichment claim “ ‘is available only in unusual situations when, though the defendant has not breached a contract nor committed a recognized tort, circumstances create an equitable obligation running from the defendant to the plaintiff.’ ” Weisblum,
Buonasera argues that New York law permits a plaintiff to plead unjust enrichment as an independent or alterative theory of recovery, citing TOT Payments LLC v. First Data Corp.,
IIG Capital LLC is irrelevant to Buo-nasera’s claim as it relates to a plaintiffs ability to bring an unjust enrichment claim when there is a dispute about the existence of a contract or where the contract does not address the relevant dispute. In this case, Buonasera is alleging tort causes of action and is relying on the same set of facts for these causes of action as he is for the unjust enrichment claim. Because Buo-nasera fails to show how the unjust enrichment claim is not duplicative, it should be dismissed. See, e.g., Mahoney,
IV. ORDER
For the reasons stated above, it is hereby
ORDERED that the Motion (Dkt. No. 35) of defendant The Honest Company Inc. (“Honest”) to dismiss the Amended Complaint (Dkt. No. 27) of plaintiff Brad Buo-nasera (“Buonasera”) on behalf of himself and all others similarly situated (collectively, “Plaintiffs”) is GRANTED in part as to the unjust enrichment and injunctive relief claims and DENIED in part as to the remaining claims.
SO ORDERED.
Notes
. The factual background below, except as otherwise noted, derives from the Amended Complaint (Dkt. No. 27) and the facts pleaded therein, which the Court accepts as true for the purposes of ruling on a motion to dismiss. See Spool v. World Child Int'l Adoption Agency,
. The Court notes that the class period is not defined in the Amended Complaint.
. Buonasera argues that he has standing to seek injunctive relief based primarily on one case from the Eastern District of New York. See Ackerman v. Coca-Cola Co., No. 09 Civ. 395,
. Honest also contends that Buonasera has not alleged that he relied on the statement that the products were "plant-based.” (See Dkt. No 35.) However, the Court notes that in paragraph 28 of the Amended Complaint, Buonasera alleges that if he had known that the products were not "plant-based,” he would not have purchased the products. The Court therefore finds that Buonasera sufficiently alleges reliance on this misrepresentation.
. The Court notes that Honest fails to identify any case in the Second Circuit in which a court has ruled on a motion to dismiss that the labels are objectively unreasonable as a matter of law. (See Dkt. No. 35.)
