EARTH ISLAND INSTITUTE, APPELLANT, v. THE COCA-COLA COMPANY, APPELLEE.
No. 22-CV-0895
DISTRICT OF COLUMBIA COURT OF APPEALS
August 29, 2024
(Hon. Maurice A. Ross, Trial Judge)
Notice: This opinion is subject to formal revision before publication in the Atlantic and Maryland Reporters. Users are requested to notify the Clerk of the Court of any formal errors so that corrections may be made before the bound volumes go to press. (Argued November 28, 2023)
Steven A. Zalesin, with whom Anthony T. Pierce, Miranda A. Dore, Jonah M. Knobler, and Jane Metcalf were on the brief, for appellee.
Caroline S. Van Zile, Solicitor General, with whom Brian L. Schwalb, Attorney General for the District of Columbia, Ashwin P. Phatak, Principal Deputy Solicitor General, and Arjun P. Ogale, Assistant Attorney General were on the brief, for the District of Columbia as amicus curiae in support of appellant.
Philip S. Goldberg and Cary Silverman filed a brief on behalf of the National Association of Manufacturers as amicus curiae in support of appellee.
Jeremy J. Broggi, Boyd Garriott, Andrew R. Varcoe, Janet Galeria, Stacy Papadopoulos, and Joseph Aquilina filed a brief on behalf of the Chamber of Commerce of the United States of America and the Consumer Brands Association as amici curiae in support of appellee.
Before BLACKBURNE-RIGSBY, Chief Judge, and BECKWITH and DEAHL, Associate Judges.
DEAHL, Associate Judge: Earth Island Institute appeals the dismissal of its suit against the Coca-Cola Company, brought under the D.C. Consumer Protection Procedures Act,
Coca-Cola moved to dismiss Earth Island‘s complaint for failure to state a claim. The trial court granted the motion, ruling (1) that Coca-Cola‘s statements were, at most, statements about its future goals, and such aspirational statements are not actionable under the CPPA, (2) that Coca-Cola‘s statements were not about “goods or services,” but were instead more generally about its corporate ethos, and (3) that under the CPPA, a plaintiff cannot allege that a defendant has made a misleading statement by assembling a “mosaic” of the defendant‘s statements that, if taken in isolation, would not support such a claim.
We reverse. Earth Island has stated a facially plausible misrepresentation claim,
Earth Island has plausibly alleged that Coca-Cola‘s statements, when viewed in their surrounding context, mislead consumers into believing that it is an environmental steward, when it is in fact an environmental scourge. Whether Earth Island can ultimately substantiate those claims is a different question for another day. For pleading purposes, Earth Island‘s complaint survives a motion to dismiss.
I. FACTS AND PROCEDURAL BACKGROUND
In reviewing a trial court‘s dismissal of a complaint under Rule 12(b)(6), we accept the plaintiff‘s allegations as true. Grayson v. AT&T Corp., 15 A.3d 219, 228-29 (D.C. 2011) (en banc). While the parties largely agree on the underlying facts, where they disagree we present the facts as Earth Island alleges them.
Earth Island‘s complaint
Earth Island alleges that Coca-Cola generates more plastic waste than any other company in the world, to the tune of 2.9 million metric tons of plastic waste per year. In recent years, Coca-Cola has made efforts to increase the recyclability of its products, to use more recycled materials in its own products, and to champion those efforts in apparent attempts to assuage consumers’ environmental concerns. Earth Island contends that these recycling efforts are the proverbial lipstick on a pig—recycling is a woefully ineffectual mechanism for mitigating plastic pollution on the scale that Coca-Cola produces it. There is nothing that Coca-Cola could do, short of vastly cutting back or eliminating its plastic production, that could render it anything that even approaches an environmentally sustainable company, or so Earth Island alleges.
Coca-Cola nonetheless represents itself as working toward environmental sustainability, despite no serious intention of doing the one thing that could actually achieve that goal: severely scaling down its plastic production. Earth Island highlights a smattering of Coca-Cola‘s statements that it argues deceive consumers into mistakenly believing that Coca-Cola is taking steps to substantially mitigate its environmental harms, when it is not. All but one of these statements appear on (1) Coca-Cola‘s consumer-facing website, www.coca-colacompany.com, (2) in a 2019 “business and sustainability report” linked to on that same website, or (3) in Coca-Cola‘s official Twitter (now “X“) feed. The website has seven prominent banners at the top of its
- “Make 100% of our packaging recyclable globally by 2025. Use at least 50% recycled material in our packaging by 2030.” (website, retrieved June 2021)
- “Part of our sustainability plan is to help collect and recycle a bottle or can for every one we sell globally by 2030.” (tweet, Feb. 2020)
Earth Island also highlights a number of Coca-Cola‘s additional statements that are more vague. These include:
- “We act in ways to create a more sustainable and better shared future. To make a difference in people‘s lives, communities and our planet by doing business the right way.” (website, retrieved June 2021)
- “Scaling sustainability solutions and partnering with others is a focus of ours.” (tweet, April 2019)
- “Business and sustainability are not separate stories for The Coca-Cola Company—but different facets of the same story.” (tweet, April 2019)
- Coca-Cola is “committed to creating a World Without Waste by taking responsibility for the packaging we introduce to markets and working to reduce ocean pollution.” (website, retrieved Oct. 2018)
- Coca-Cola‘s chairman and chief executive says that he is “reminded of the power of our people to make a difference, to serve our communities and to constantly work to shape a more sustainable business.” (2019 report)
- “Because our company is in so many communities globally, we can share our best practices. We can collaborate with governments, communities, the private sector, and NGOs to help develop more effective recycling systems that meet each community‘s unique needs.” (2019 report)
- “The interconnected global challenges of packaging waste and climate change have made this a focus that we are taking a leadership position on.” (website, retrieved June 2021)
- “We‘re using our leadership to achieve positive change in the world and build a more sustainable future for our communities and our planet.” (2019 report)
Coca-Cola also co-signed one pertinent statement that was issued by the American Beverage Association:
- “Together, we‘re committed to getting every bottle back. . . . Our goal is for every bottle to become a new bottle, and not end up in oceans, rivers, beaches and landfills. . . . This unprecedented commitment includes . . . [p]artnering with [other organizations] to improve recycling access, provide education to residents and modernize the recycling infrastructure in communities across the country.” (American Beverage Association‘s website, retrieved June 2021)
Summarizing these statements, Earth Island alleges that they “give consumers the impression that Coca-Cola is taking unprecedented and serious steps to ‘take responsibility’ for its own plastic pollution; increase bottle collection rates; and ultimately reimagine patterns of plastic consumption by developing new bottle technology.” In fact, it alleges, Coca-Cola “is far from what consumers would understand to be a sustainable business,” and it
Coca-Cola does not dispute that it “uses a great deal of packaging, some of which inevitably ends up in the natural environment” and that there is a substantial “amount of work it has left to do” to address its “environmental challenges.” But in its view, it is taking steps to meet those challenges so that its representations to the same effect are not misleading. There is thus no real dispute about the thrust of Coca-Cola‘s representations to consumers; in a nutshell, Coca-Cola represents that it is working toward environmental sustainability. Where the parties disagree is whether those representations give consumers a false impression of Coca-Cola‘s current and anticipated environmental impact on the ground.
Earth Island sued Coca-Cola under the CPPA‘s provisions prohibiting, among other things, “misrepresent[ing] . . . a material fact which has a tendency to mislead” and “fail[ing] to state a material fact,” or “us[ing] innuendo and ambiguity as to a material fact,” in a way that “tends to mislead” consumers.
The trial court dismisses the complaint
The trial court granted Coca-Cola‘s motion to dismiss under Rule 12(b)(6). The court offered three reasons for concluding that Earth Island had not pled a plausible claim for relief under the CPPA. First, it reasoned that the purported misrepresentations were “aspirational in nature,” with “no promises or measurable datapoints that would render [them] true or false,” making them non-actionable under the CPPA. Second, it noted that the purported misrepresentations did not appear “on the product label” itself, but instead appeared only in “various corporate communications,” which in the court‘s view meant that they were not about “specific ‘good or services‘” as required by the CPPA. Third, the court observed that the statements recounted above were cherry-picked from across Coca-Cola‘s website, an annual report, and Twitter, and the court opined that such distinct statements “cannot be cobbled together to allege one general misrepresentation.”
Earth Island now appeals.
II. ANALYSIS
Before we dive into the merits of the dispute before us, we must address Coca-Cola‘s threshold argument that Earth Island lacks standing to bring this suit. After we explain why Earth Island has standing to bring this suit under the CPPA, we then address the meat of this appeal, which is
A. Earth Island has standing to maintain this suit
Coca-Cola argues that Earth Island lacks standing to bring this suit because it has not identified a class of consumers likely to be misled by Coca-Cola‘s statements. Coca-Cola made the same argument before the trial court, and while the trial court did not address this issue, standing raises a jurisdictional question that we are not free to bypass. Grayson, 15 A.3d at 229. In Coca-Cola‘s view, Earth Island “failed to ‘identify’ a single District consumer who was ever exposed to—let alone deceived by—each of the challenged statements.”
“The District of Columbia‘s local courts, ‘established by Congress pursuant to Article I, are not constitutionally bound by the requirements of Article III.‘” Animal Legal Defense Fund v. Hormel Foods, 258 A.3d 174, 181 (D.C. 2021) (“ALDF“) (quoting District of Columbia v. Walters, 319 A.2d 332, 338 n.13 (D.C. 1974)). While we nonetheless generally adhere to Article III‘s strictures, “that prudential judgment is subject to legislative override,” and as we have previously explained, the Council has supplanted Article III‘s standing requirements in the CPPA. Id.
Under that statutory test, Earth Island has standing to maintain this suit, for the reasons we more exhaustively set forth in ALDF. Section
Given the pervasive presence of Coca-Cola in modern life, and the ubiquity of the internet where Coca-Cola‘s statements appear, that is a perfectly reasonable group of consumers on behalf of whom Earth Island can bring suit. It is only somewhat more expansive than the consumer class in ALDF, which was “D.C. consumers who are targeted, and have been or will be misled, by Hormel‘s Natural Choice ads.” Id. at 186. Earth Island‘s complaint also points to empirical data that “[f]orty-seven percent of consumers surveyed expressed a desire to conduct business with retailers that were environmentally conscious.” So it naturally follows that a considerable chunk
While it is perhaps true that no particular consumer is likely to have seen the precise mélange of statements that Earth Island has pieced together in advancing its suit, that is neither here nor there. The particular statements that Earth Island highlights, in virtually any combination and often in isolation, convey the same basic concept: that Coca-Cola is a company that cares about, and is working meaningfully toward, environmental sustainability. If Earth Island is correct that this message runs contrary to the facts on the ground, then it has sufficiently alleged that there is class of District consumers that will be misled by those statements, so that it is has standing to maintain its suit.
B. Earth Island plausibly states a claim for relief under the CPPA
We now get to the core of this appeal, which is whether Earth Island plausibly alleges that Coca-Cola‘s statements about its environmental sustainability efforts mislead consumers. Earth Island argues that it has, averring that (1) Coca-Cola is a fundamentally unsustainable business because of its heavy reliance on single-use plastics that it has no immediate intentions of eliminating or substantially reducing; (2) Coca-Cola misleads consumers into thinking that it is serious about hitting its specific sustainability goals, when its practices say otherwise; and (3) Coca-Cola‘s statements create the misimpression that recycling is a viable method for substantially mitigating the harm its plastic products cause to the environment, when it is not. Each of those three iterations of Earth Island‘s claims are facially plausible.
Coca-Cola throws a few counterpunches that roughly track the trial court‘s three bases for dismissing the complaint (with some new glosses). First, it argues that the statements at issue are “classic puffery—i.e., generic statements of values, goals and aspirations that cannot be objectively proved true or false, and cannot deceive a reasonable consumer.” Second, it contends that the subject statements were not about any “specific ‘good or services,‘” though it disavows the trial court‘s additional gloss that statements must appear on a product label itself to be actionable (the parties agree that is too rigid a view, as do we). Third, it argues that Earth Island has improperly cobbled together a mosaic of statements to manufacture its deceptive marketing claims, whereas the proper unit of analysis is each “individual advertisement,” and whether any of the above statements taken in isolation would deceive a reasonable consumer. We disagree at each step.
We start by explaining why Earth Island has pled a plausible claim for relief, and then explain why Coca-Cola‘s (and the trial court‘s) three counterpoints do not alter that conclusion.
1. Earth Island‘s claim is facially plausible
The CPPA protects consumers against false, deceptive, or unfair business practices. It is a broad consumer protection statute, meant to “assure that a just mechanism exists to remedy all improper trade practices.”
Under the CPPA, people and businesses are precluded from “misrepresent[ing]” any “material fact which has a tendency to mislead.”
Earth Island‘s complaint plausibly checks those boxes in three distinct ways.
First, Coca-Cola represents itself as a company that is focused on working toward a more sustainable environment. Earth Island plausibly alleges that Coca-Cola‘s actions in mass producing single-use plastics, with no intention of stopping or significantly curtailing that production, tell a wildly different story. Coca-Cola‘s continued reliance on single-use plastics on a massive scale makes it so fundamentally unsustainable that when it touts its efforts to marginally offset the very harms it inflicts on the environment, that serves only to distract consumers from its environmental evils, or so the argument goes. And there is no dispute that consumers care about that—the statements are “material,” as Earth Island substantiated in its complaint through surveys demonstrating that a significant portion of consumers care deeply about environmental issues, with roughly half of them expressing some desire to conduct business with “environmentally conscious” businesses.
To draw a comparison, Earth Island‘s claim is that when Coca-Cola touts its efforts to be “more sustainable,” it is akin to cigarette manufacturers marketing light or low tar cigarette as if they were “healthier.” Reducing the tar levels in cigarettes can make them marginally less deadly, in a trivial sense. But to suggest they are a healthier option elides the fact (without mentioning) that smoking even low tar cigarettes ranks among the most unhealthy habits a person can have, and it is not meaningfully healthier than smoking full tar cigarettes—thereby potentially misleading consumers. See generally United States v. Phillip Morris USA Inc., 566 F.3d 1095, 1118-20, 1138 (D.C. Cir. 2009) (upholding finding that cigarette manufacturers made “statements they knew to be false or misleading” in marketing “light” and “low tar” cigarettes, noting “the lack of any significant health benefit from smoking light cigarettes” on account of smoker “compensation,” i.e., smokers inhaling more and more frequently with light cigarettes). Analogously, when Coca-Cola promotes its sustainability efforts, it omits the alleged fact that Coca-Cola‘s mass-scale production of single-use plastics
Second, and relatedly, Earth Island plausibly alleges that Coca-Cola misleads consumers about the extent to which recycling can offset the environmental impacts of its mass-scale plastic production. Given how Coca-Cola promotes its “World Without Waste” initiative and trumpets how it is “[s]caling sustainability solutions,” a reasonable consumer could plausibly think that its recycling efforts will put a serious dent in its environmental impacts. That is misleading, Earth Island alleges, pointing to a recent study showing that “only 8.7% of all recyclable plastics in the U.S. were recycled,” yet “large producers such as Coca-Cola continue to push ineffective ‘recycling’ as a viable tool to assuage their environmental pollution.” If those facts are borne out, then it is quite plausible that Coca-Cola misleads consumers both through its statements and by failing to qualify them, i.e., via omission. That is, when it promotes its recycling efforts, it omits the fact that those efforts will not prevent the vast bulk of its plastic products from ending up as waste or pollution, a deception that Earth Island alleges Coca-Cola very much intends.
Third, Earth Island plausibly alleges that Coca-Cola misleads consumers into thinking it is serious about hitting the concrete benchmarks it has announced for itself, when in fact its practices show no intention of doing so. Recall that Coca-Cola‘s stated goals are (1) to make 100% of its packaging recyclable by 2025, (2) to use 50% recycled material in its packaging by 2030, and (3) to recycle a bottle or can for every one it sells by 2030. Earth Island plausibly alleges that Coca-Cola has not, to date, taken any serious steps toward putting those goals within reach, whereas a reasonable consumer would think Coca-Cola was taking the steps necessary to achieve its stated goals.1 If those are indeed misrepresentations, they are about a material fact for the same reasons just given: Those benchmarks are clearly relevant to any assessment of whether Coca-Cola is an environmentally
conscious business, and Earth Island has more than plausibly alleged that consumers care about that.
To be very clear, we do not offer any view about the veracity of Earth Island‘s claims. We do not presume to know what reasonable consumers understand a company to mean when it claims that it is working to be “more sustainable” or the like. For all we know, reasonable consumers would immediately dismiss that type of speech as vacuous corporate jargon, not to be relied upon. But that is not obviously true; the concerted efforts that companies like Coca-Cola make to cultivate an image of being environmentally friendly strongly
2. Coca-Cola‘s counterarguments are unpersuasive
Coca-Cola makes three counterarguments, largely tracking the trial court‘s bases for dismissing Earth Island‘s suit: (1) its statements are “classic puffery,” incapable of misleading consumers; (2) its statements were not about its “goods or
services,” but about corporate ethos, and (3) Earth Island improperly targets a mosaic of statements, where the proper question is whether any individual statement is misleading in isolation. Both Earth Island and its amicus, the District of Columbia, disagree with each point. We address these points in turn, with the bulk of our discussion focused on the first point.
a. The subject statements are not clear puffery
Puffery is a legal doctrine that posits some statements are of a type that no reasonable consumer would rely upon them, because there is a certain amount of bluster or “sales talk” that is to be expected when pushing one‘s wares. When a diner advertises “World‘s Best Cup of Coffee,” for instance, nobody but Buddy the Elf would take that literally, and the law chalks that up to puffery. As one leading treatise more pejoratively put it, “[t]he puffing rule amounts to a seller‘s privilege to lie his head off, so long as he says nothing specific, on the theory that no reasonable man would believe him, or that no reasonable man would be influenced by such talk.” Prosser & Keeton on Torts § 109 at 757 (5th ed. 1984).2
The puffery “rule has not been a favored one,” and except in rare cases, the question of whether a statement is an “actionable misrepresentation” or mere puffery must be “left to the jury.” Id.; see also Hagedorn v. Taggart, 114 A.2d 430, 431 (D.C. 1955) (“[W]hether statements . . . amount to mere ‘puffing‘. . . depends upon the surrounding circumstances, the manner in which they are made, and the ordinary effect of the words used. Ultimately, this is a question to be resolved by the trier of the facts.“); Center for Inquiry Inc. v. Walmart, Inc., 283 A.3d 109, 121 (D.C. 2022) (“[W]hether a trade practice is misleading under the
One of the few examples of the puffery doctrine at play in this court‘s jurisprudence is Pearson v. Chung, where a customer argued under the
To unpack Pearson further, we did not in fact hold that the plaintiff‘s claim was barred as a matter of law under the puffery doctrine (as Coca-Cola now suggests). That question was not before us. Still, we have little doubt that outright dismissal would have been an appropriate result under the circumstances of that case if Pearson‘s claim depended entirely on reading “Satisfaction Guaranteed” to mean any customer demand must be satisfied: that would be absurd, and no reasonable consumer would interpret the sign to oblige a business to satisfy even the most patently unreasonable demands of a customer, like asking for millions of dollars to compensate for a lost pair of pants. But we likewise have no doubt that puffery would not have been a legal bar to a suit had Pearson advanced a more tenable reading of that sign, perhaps as a guarantee that the drycleaners would reimburse him for the value of lost items (they had already done that), or that they would not charge a customer for services they were dissatisfied with. If that were his argument, he would have raised a plausible claim—and a question for the factfinder—about what reasonable consumers would understand “Satisfaction Guaranteed” to mean.
This is not the rare case where we can say that no reasonable consumer would rely on Coca-Cola‘s representations that it “act[s] in ways to create a more sustainable and better shared future,” including for “our planet,” as some assurance that Coca-Cola is not the environmental menace that Earth Island alleges it is. Nor can we say that no reasonable consumer would understand Coca-Cola‘s statements to mean that recycling is a viable method for combatting its mass production of plastics, which Earth Island plausibly alleges is contrary to fact. Nor can we say that no reasonable consumer would believe that Coca-Cola is taking the
Coca-Cola seeks to evade this conclusion by floating two more rigid approaches to puffery, neither of which withstands scrutiny. It first posits, citing to Pearson, that where a statement‘s “truth or falsity. . . cannot be precisely determined,” it is puffery. 961 A.2d at 1076 (quoting Tietsworth v. Harley-Davidson, Inc., 677 N.W.2d 233, 245 (Wisc. 2004)). That is too rigid a view. What Pearson actually said is that puffery includes “the exaggerations reasonably to be expected of a seller as to the degree of quality of his product, the truth or falsity of which cannot be precisely determined.”3 Id. (quoting Tietsworth, 677 N.W.2d at 245). You cannot divorce the second part of that definition from the first (and more critical) part of it, as Coca-Cola mistakenly does; businesses cannot insulate themselves from suit simply by avoiding concrete claims. Vague and ambiguous statements, incapable of being strictly true or false, may yet be actionable as misrepresentations—a point this court has already made clear. See Remeikis v. Boss & Phelps, Inc., 419 A.2d 986, 990 (D.C. 1980) (“[A] statement literally true is actionable if made to create a false impression,” even under the more exacting
standards for common law fraud.); see also Jefferson v. Collins, 210 F. Supp. 3d 75, 89 (D.D.C. 2016) (same in
Coca-Cola counters with heavy reliance on the analysis in Bimbo Bakeries USA, Inc. v. Sycamore, 29 F.4th 630 (10th Cir. 2022). In that case, the Tenth Circuit overturned a jury verdict finding that a bakery engaged in false advertising when it billed baked goods it sold in Utah as “local,” despite the fact that they were made exclusively out-of-state, as far away as Alaska. Id. at 642. While a jury found that to be willful false advertising—concluding that the bakery‘s “local” tagline was deliberately
We firmly reject that analysis. It is of course true, as that court stressed, that the word “local” has a range of meanings. But it is just as obviously true that some things fall outside that range of meanings, often depending on context. To illustrate, here in the District, if somebody says they support the “local” NFL team, you would most naturally think they are supporters of the Washington Commanders, though they might also fairly be referring to the Baltimore Ravens, given that Baltimore is less than forty miles away (i.e., there‘s a range that “local” might fairly apply to). But if they are in fact fans of the Los Angeles Rams—a team that hails from more than two thousand miles from here (just as some of the baked goods in Bimbo Bakeries came from Alaska, more than two thousand miles away from Utah)—then they have undoubtedly deceived you. They are, under no reasonable understanding of the word, a fan of the “local” NFL team. So there is nothing unreasonable about a jury‘s conclusion that the word “local,” when used to describe baked goods, did not fairly describe baked goods that were made exclusively out-of-state. Nor do we share Bimbo Bakeries‘s hostility toward consumer survey evidence as one viable evidentiary tool for discerning how reasonable consumers understand various advertisements. Contra id. at 646 (“If a statement is not one of fact, it is legally irrelevant whether consumers agree with it.“).
Whatever persuasive force Bimbo Bakeries has in interpreting the federal Lanham Act,4 it is incompatible with the District‘s
Coca-Cola‘s second crack at a rigid rule tracks the trial court‘s analysis: that when “statements are aspirational in nature,” sans any “promises or measurable datapoints that would render [them] true or false,” they are not actionable under the
To illustrate the point, imagine an obese husband who assures his wife that he is going to “do what it takes to lose a lot of weight this year.” In fact, he never had any intention of modifying his diet or exercise regime in any way (though he sincerely hoped the weight might shed itself), and halfway through the year he repeats his assurances that he is “doing what it takes to lose a lot of weight” despite having taken no steps to lose any weight at all. Of course his wife could reasonably feel misled by her husband‘s assurances: (1) it was implicit in them at the start of the year that he at least intended to take some steps that could feasibly achieve the stated goal, but he never harbored those intentions; and (2) when he repeated his assurances that he was doing what it takes midway through the year, that was just a flat-out lie.
That is precisely the type of misrepresentation that Earth Island alleges here. It is not that Coca-Cola has failed to hit some stated goals—that alone could not support a misrepresentation claim, see Dobbs, supra, § 678 at 690—but that it has never even intended to do anything that could achieve them. That is a viable misrepresentation claim because Coca-Cola‘s statements “can be interpreted to be a representation about [its] present intent” to meaningfully improve its environmental sustainability “rather than a mere promise of future action.” Id. Earth Island alleges that Coca-Cola has no intention of substantially cutting back on its mass production of single-use plastics, so that its business is flatly incompatible with its claim that it “act[s] in ways to create a more sustainable and better shared future.”5 While Coca-Cola‘s recycling initiatives are surely not nothing, Earth Island alleges that they are insubstantial, on par with the aforementioned husband eating a salad instead of his usual cheeseburger for just one meal. Perhaps that is a step toward losing a lot of
weight, but if that is the full extent of his anticipated efforts—and then it‘s cheeseburgers the rest of the year—his wife would be right to feel misled by his assurances. Not because he failed to reach his goals, but because he never had any intention of taking—and never took—any steps that might possibly achieve them.
b. The subject statements are about Coca-Cola‘s goods and services
Coca-Cola next argues that the subject statements are not actionable under the
it sells, and the environmental impact of how it creates that product, and what becomes of it, are qualities of the product itself under the
The statements in question describe Coca-Cola‘s efforts to change both the processes by which its packaging is manufactured and how that packaging can be processed after the consumer discards it. Its statements about producing materials in a more sustainable manner are statements about its economic outputs at the production stage; its statements about recycling discarded packaging are statements about the disposal of its economic outputs. Just as the statement “this bottle is recyclable” would clearly be a statement about the product, so too is the statement “we are working to make this bottle be even more recyclable.” If Coca-Cola makes misleading statements about whether its products are produced in a sustainable way and can be effectively recycled, then those statements are about “goods and services” as the term is broadly defined in the
c. The statements can be properly considered in the aggregate
Coca-Cola also argues, as the trial court reasoned, that a
That is a valid concern, but it is rather overstated here, as Earth Island‘s suit seeks only declaratory and injunctive relief (plus costs and attorney‘s fees) and not any damages for statements that Coca-Cola had made in the past. Its suit targets only those statements that Coca-Cola is still making today—they generally remain on Coca-Cola‘s website under a prominent “SUSTAINABILITY” banner, or on its Twitter feed. Because Earth Island has effectively limited its claims to those representations that Coca-Cola is still making about its sustainability practices today, the trial court could quite reasonably tailor discovery and trial accordingly, with a narrow focus on the statements that Coca-Cola continues to propagate today through channels (primarily, the internet) that a District consumer might reasonably come across. That would substantially eliminate the trial court‘s concern about getting into “actions all over the world over several decades.”
As for the representations that Coca-Cola continues to make, we agree
Beyond that, we will not prejudge the likelihood that any particular consumer might have viewed those statements in combination with Coca-Cola‘s 2019 sustainability report (which appears on Coca-Cola‘s website), the subject tweets that Earth Island similarly relies upon, or the one statement from the American Beverage Association‘s website. Those questions raise evidentiary issues, not something that7
can be resolved on the pleadings. It is plausible enough that a consumer curious about Coca-Cola‘s environmental impacts would come across the variety of statements relied upon by Earth Island through some casual Googling.
C. The First Amendment is not a bar to Earth Island‘s suit
Finally, Coca-Cola asks that we affirm the trial court‘s dismissal of this suit on the alternative grounds that it is precluded by the First Amendment. Its amici—the Chamber of Commerce of the United States, the Consumer Brands Association, and the National Association of Manufacturers—press the same point. They argue that Coca-Cola‘s speech “encompasses political activity and advocacy on important matters of public concern,” so that it falls in the First Amendment‘s heartland. We disagree.
“The First Amendment ‘does not prohibit the State from insuring that the stream of commercial information flow cleanly as well as freely.‘” Meta Platforms, Inc. v. District of Columbia, 301 A.3d 740, 758 (D.C. 2023) (quoting Va. State Bd. of Pharmacy v. Va. Citizens Consumer Council, Inc., 425 U.S. 748, 772 (1976)). The speech that Earth Island targets is Coca-Cola‘s commercial speech about its goods and services; it is alleged that Coca-Cola cultivates a sustainability narrative in an effort to sell products. Because Earth Island plausibly alleges that commercial speech would mislead reasonable consumers, Coca-Cola‘s First Amendment claim is a non-starter. Id.; Ibanez v. Florida Dep‘t of Business, 512 U.S. 136, 142 (1994) (“False, deceptive, or misleading commercial speech
III. CONCLUSION
For the foregoing reasons, we reverse the dismissal of Earth Island‘s complaint, and remand the case for further proceedings.
So ordered.
