OPINION & ORDER
This lawsuit by a computer software company seeks redress for critical statements about it and its flagship product that were posted on a computer support website. Plaintiff Enigma Software Group USA, LLC (“ESG”) develops and markets computer security products, including Spy-Hunter, its leading anti-malware program. Defendant Bleeping Computer LLC (“Bleeping”) owns and operates http:// www.bleepingcomputer.com, a computer support website. ESG alleges that Bleeping has perpetrated a “smear campaign” against ESG, which has entailed publishing false, defamatory statements about ESG and SpyHunter in order to divert sales from ESG to its competitors, from” whom Bleeping receives commissions. ESG brings claims against Bleeping for defamation and trade libel, in violation of New York law, and false advertising, in violation of the Lanham Act, 15 U.S.C. § 1125(a)(1)(B).
. Bleeping now moves to dismiss the Second Amended Complaint (“SAC”) under Federal Rule of Civil Procedure 12(b)(6) on various grounds. For the reasons that follow, that motion is granted in part and denied in part.
I. Background
A. Factual Background
ESG is a Florida limited liability company that develops and markets computer
Bleeping operates a website, http://www. bleepingcomputer.com, which offers information, advice, and resources about computer technology and security. See id. ¶¶ 2-3, 32-34. Anti-malware software is a focus of Bleeping’s coverage. Id. ¶ 5. Bleeping generates profits through its “Affiliate” program, under which it receives commissions from designated “Affiliate” software companies for promoting their products on its website. Id. ¶¶ 7-8, 43. Under that program, Bleeping posts “Affiliate Links” throughout its website which redirect users to third-party webpages where they can buy Affiliate products. Id. ¶¶ 8, 35-36. Bleeping earns a commission whenever a user clicks on an Affiliate link and buys an Affiliate product. Id. ¶ 37.
The Bleeping website includes a “Forums” section where Bleeping offers advice and answers users’ questions about topics related to computer security and technology. Id. ¶¶34, 41. Bleeping manages the Forums through a hierarchy of “member groups,” comprised of “staff members” who are appointed to “generate and control [the] content” posted therein. Id. ¶¶ 45, 54, 60. The third-highest “member group” is made up of “Advisors,” whom Bleeping holds out as experts who “can be trusted to give correct and understandable answers to [users’] questions.” Id. ¶¶ 50-51. Above Advisors are “Global Moderators,” who enjoy “special powers” to enforce rules governing the Forums, e.g., by “closing” discussions, editing the content of users’ posts, and suspending the posting privileges of users who, violate the rules. Id. ¶¶ 48-49. Finally, Lawrence Abrams, Bleeping’s owner, occupies the highest member group as the overall “Admin” of the Forums. Id. ¶ 47. Abrams has the “final say when appointing all other staff positions.” Id.
Whenever an Advisor, Global Moderator, or Admin posts in Bleeping’s Forums, “Bleeping clearly identifies that the post has been made by [a Bleeping staff member].” Id. ¶ 53.
Bleeping does not receive commissions from ESG on sales of SpyHunter or any of its other products. Id. ¶ 11.' But, it does have an Affiliate arrangement with Mal-warebytes, a direct competitor of ESG. Id. ¶ 10; see also id. ¶ 44 (“Bleeping functions as a sales arm of Malwarebytes.”). On that basis, the SAC alleges, “Bleeping has a direct financial interest in driving traffic and sales to Malwarebytes and ... away from ESG.” Id.- ¶ 12. “To further that interest,” it alleges, Bleeping “has adopted and employed a pattern of making[, in its Forums posts,] false, inaccurate, misleading and disparaging statements about ESG and [SpyHunter] ... while simultaneously recommending ... Malwarebytes[’ anti-spyware product, Malwarebytes Anti-Mal-ware].” Id. ¶ 13; see also id. ¶¶ 75-78. “To make it easy for users to replace SpyHun-ter[] with [Malwarebytes Anti-Malware] and to earn its [commission],” the SAC alleges, Bleeping includes in such posts Affiliate Links through which users can purchase Malwarebytes Anti-Malware. Id. ¶ 91. Additionally, the SAC alleges, Bleeping routinely removes links posted by users that endorse ESG’s products. Id. 1(92.
The SAC alleges that Quietman7, a Bleeping Advisor and one of only three Global Moderators, is a chief spokesperson for Bleeping’s “smear campaign”- against ESG. See id. ¶¶ 65-76. In that role, the SAC alleges, whenever a forum member .mentions or inquires about ESG or Spy-Hunter, Quietman7 responds by making false, disparaging statements about ESG and SpyHunter and/or directing users to past posts containing such statements. See id. ¶¶ 86-88. The SAC identifies 13 such posts published on various dates between December 10, 2013 and October 31, 2015. See id. ¶¶ 80, 86-88; id., Exs. 6-11. In them, the SAC alleges, Quietman7 made false and misleading statements that “impugn the integrity of ESG and the quality and efficacy of SpyHunter.” Id. ¶110. Concretely, the SAC alleges, Quietman7 stated, directly or by implication, that: (1) ESG engages in aggressive and deceptive advertising; (2) SpyHunter is a “dubious” and “ineffective” program that generates false positives; and (3) SpyHunter is a “rogue” product that is properly classified as malware, rather than the cmii-malware product it purports to be. See id. ¶¶ 103, 117; id., Ex. 7, at 2, 4; id., Ex. 8, at 3; id., Ex. 10, at 3, 10, 13-14; id., Ex. 11, at 5. In the same posts, the SAC alleges, Quiet-man? advised users to remove SpyHunter and replace it with a more “trustworthy” alternative — invariably an Affiliate product, such as Malwarebytes Anti-Malware, for which he supplied an Affiliate Link. Id. ¶89.
The SAC alleges that Bleeping has considerable influence over its users, who heed its advice when making purchasing decisions. Id. ¶ 90; see also, e.g., id., Ex. 10, at 11 (user response to Quietman7’s 6/1/2015 post: “K, thanks .... I’m convinced. Will buy a more trustworthy prod
B. Procedural History
On January 5, 2016, ESG filed the original Complaint. Dkt. 1. On January 8, 2016, ESG filed the First Amended Complaint (“FAC”). Dkt. 6. On February 26, 2016, Bleeping filed a motion to dismiss the FAC. Dkt. 16.
On March 18, 2016, ESG filed the SAC. Dkt. 25. It brings claims for (1) libel; (2) libel per sé; (3) trade libel/commercial disparagement; and (4) false advertising, in violation of § 43(a) of the Lanham Act. SAC ¶¶ 101-27. It seeks (1) declaratory relief; (2) an injunction barring Bleeping from publishing actionable statements about ESG and directing it to publicly retract the offending statements; (3) damages; and (4) attorneys’ fees and costs. Id, at 22-23.
On April 8, 2016, Bleeping filed a motion to dismiss the SAC, Dkt. 28, along with a memorandum of law, Dkt. 32 (“Def. Br”), and an affidavit by its counsel, Dkt. 29, in support. On April 22, 2016, ESG filed a brief in opposition, Dkt. 32 (“PL Br.”), along with a declaration by ESG’s counsel, Dkt. 31 (“Prager Decl.”), and attached exhibits. On April 29, 2016, Bleeping replied. Dkt. 35 (“Def. Reply Br.”). On June 6, 2016, the Court heard argument. See Tr.
II. Applicable Legal Standards
To survive a motion to dismiss under Rule 12(b)(6), a complaint must plead “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly,
In considering a motion to dismiss, a district court must “accept[] all factual claims in the complaint as true, and draw[] all reasonable inferences in the plaintiffs favor,” Lotes Co. v. Hon Hai Precision Indus. Co.,
III. Discussion
ESG brings claims against Bleeping for libel, libel per se, and trade libel, under New York law (“state-law claims”), and for false advertising, under § 43(a) of the Lan-ham Act. Bleeping moves to dismiss on the grounds that (1) the Communications Decency Act, 47 U.S.C. § 230 (“CDA” or
The ensuing analysis proceeds as follows: The Court first addresses, and rejects, Bleeping’s threshold arguments that ESG’s claims are barred by the CDA and the applicable statutes of limitations. The Court then considers Bleeping’s substantive challenges to each claim.
A. Threshold Questions: Immunity and Timeliness
1. Does the Communications Decency Act Bar ESG’s Claims?
Section 230(c) of the CDA states that “[n]o provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” 47 U.S.C. § 230(c)(1). Section 230(e) states that “[n]o cause of action may be brought and no liability may be imposed under any State or local law that is inconsistent with ' this section.” Id. § 230(e)(3). Accordingly, a defendant is immune from liability if: “(1) it is a ‘provider or user of an interactive computer service’;
ESG does not dispute that Bleeping is an ICS under the statute, and websites clearly so qualify.
As to ESG’s first argument, § 230(e)(2) states that “[n]othing in this section shall be construed to limit or expand any law pertaining to intellectual property.” 47 U.S.C. § 230(e)(2). A court in this District has held that this language precludes immunity for claims brought under § 43(a) of the Lanham Act. See Gucci Am., Inc. v. Hall & Assocs.,
As to ESG’s second argument, it is well established that', for an ICS to enjoy immunity under CDA § 230, a different ICP must have provided the complained-of information — the statute does “not immunize [defendants] with respect to any information [they] developed or created entirely by [themselves].” Doe v. City of New York,
The Court agrees that the factual allegations, which must be credited on a motion to dismiss, are sufficient, under principles of agency, to make Bleeping the provider of the challenged statements about ESG and SpyHunter. Under New York law, an express agency is created through (1) “the principal’s manifestation of intent to grant authority to the agent,” (2) “agreement by the agent,” and (3) the principal’s “control over key aspects of the undertaking.” Com. Union Ins. Co. v. Alitalia Airlines, S.p.A.,
Here, the SAC alleges that Bleeping publicly designated Quietman7 as a “Global Moderator” and “Advisor” — the second and third highest “staff member” positions within the Bleeping member group hierarchy. SAC ¶¶ 48-51, 60, 65-67, 69.
These allegations plausibly support the conclusion that Quietman7 was acting, at a minimum, as Bleeping’s implied agent when he posted the allegedly offending content. See Amusement Indus., Inc. v. Stern,
Because the SAC adequately pleads that Quietman7 acted as Bleeping’s agent, he does not qualify as a third-party ICP under the CDA so as to entitle Bleeping to immunity. Section 230, therefore, does not bar ESG’s claims. See AM Armani Medical, Inc. v. Hennessey,
2. Are ESG’s Claims Time-Barred?
Bleeping argues that ESG’s claims are time-barred because (1) they are subject to a one-year limitations period, and (2) “[n]early all” the statements that underlie them were published more than one year before the initial Complaint was filed. Def. Br. 9. The Court assesses the timeliness of ESG’s state-law and Lanham Act claims in turn.
a. State-Law Claims
New York law sets a one-year statute of limitations for defamation and trade libel claims. N.Y. C.P.L.R. § 215(3). Under the “single publication rule,” the publication of a defamatory statement— however widespread its distribution — is “in legal effect, one publication which gives rise to one cause of action,” with the limitations period running from the date of publication. Gregoire v. Putnam’s Sons,
Here, the 13 posts that supply the basis for ESG’s claims were published on various dates between December 10, 2013 and October 31, 2015. See SAC ¶¶ 80, 86-88; id., Ex. 6, at 3-4, 7, 9; id., Ex. 7, at 2-3, 4, 5; id., Ex. 8, at 3; id., Ex. 9, at 3-4; id., Ex. 10, at 3, 10, 13-14; id., Ex. 11, at 5. Of those, eight were posted within one year of the initiation of this action — i.e., on or after January 5, 2015. See id., Ex. 6, at 7, 9; id., Ex. 7, at 5; id., Ex. 9, at 3-4; id., Ex. 10, at 3, 10,13-14; id., Ex. 11, at 5. Each of those includes a hyperlink to a previous post published by Quietman7 on September 28, 2014, in a forum topic entitled “spyhunter vs Malwarebytes vs iobit” (the “2014 Post”). Id., Ex. 6, at 3-4.
Bleeping argues that merely hyperlink-ing to the 2014 Post does not create a republication that retriggers the limitations period, and, therefore, that any claims predicated on posts in which Quiet-man7 refers readers to the 2014 Post via hyperlink are time-barred. Def. Br. 9.
Bleeping’s argument fails because four post-January 5, 2015 posts go beyond merely hyperlinking to the 2014 Post: They contain additional statements which ESG alleges are themselves defamatory. For instance, Quietman7’s October 31, 2015 post in the “HTML/RCE .Gen3 Virus” forum topic reads, in pertinent part, as follows:
SpyHunter by Enigma Software Group USA, LLC is a dubious program and detection results should be analyzed carefully before you remove anything. When searching for malware removal assistance (and removal guides) on the Internet, it is not unusual to find numerous hits from untrustworthy and scam sites which mis-classify detections or provide misleading information. This is deliberately done more as a scam to entice folks into buying an advertised fix or using a questionable removal tool. SpyHunter ..., a dubious and ineffective program with a history of employing aggressive and deceptive advertising is one of the most common “so-called” removal tools pushed by these sites. Please read this topic [the 2014 Post] for important information about SpyHunter.
SAC, Ex. 10, at 13-14; see also id., Ex. 10, at 3,10; id., Ex. 11, at 5.
Because at least some of the allegedly defamatory statements fall within the limitations period, ESG’s state-law claims cannot be dismissed as untimely. See Ullah v. NYC Dep’t of Educ., No. 11 Civ. 3868,
In light of this holding, the Court has no occasion to determine, at this stage, whether any of Quietman7’s post-January 5, 2015 posts amount to a republication of the 2014 Post (thus making the material first published in the 2014 Post potentially actionable). However, because this issue, which presents a question requiring close textual and contextual analysis, is apt to resurface later in this litigation, the Court
Bleeping cites a number of cases for the proposition that hyperlinking to an earlier-published article does not amount to a republication of that article. But those cases arise in a context different from that here. There, the hyperlinks were either posted without commentary or accompanied by a reference that did not restate the allegedly defamatory content. See, e.g., In re Philadelphia Newspapers, LLC,
In contrast, ESG cites to cases “where substantive material [was] added to a website, and that material [was] related to defamatory material that [was] already posted.” In re Davis,
b. Lanham Act Claim
Because the Lanham Act does not have its own statute of limitations, the Court “must look to the analogous State law to determine the limitations period which does best to further the policies behind the Act.” Mario Valente Collezioni, Ltd. v. AAK Ltd.,
In the face of this precedent, Bleeping argues that a one-year limitations period should apply here because ESG’s Lanham Act claim — that Bleeping damaged ESG’s reputation by making disparaging comments about its business practices and product — is akin to a defamation claim. Def. Br. 9-10. That argument is not persuasive.
Bleeping fails to identify any case applying a defamation statute of limitations to a Lanham Act claim. See Tr. 16-17 (Bleeping’s counsel: “I don’t even have an obscure case for you.”). And its statement that “[t]his is a defamation claim poorly disguised as a Lanham Act claim” oversimplifies ESG’s claim. Def. Br. 10; see also Tr. 19 (“We are [ ] only here because they are complaining about damage to their reputation_ [S]o that’s why I [ ] think it’s a defamation claim dressed up as a Lanham Act claim.”). ESG does not merely allege that Bleeping made false and disparaging statements about it and Spy-Hunter. It claims that Bleeping mounted an organized “smear campaign” against ESG, designed to mislead consumers as to the relative merits of SpyHunter and Mal-warebytes Anti-Malware, in order to divert sales from ESG to Malwarebytes, from whom it receives commissions. See SAC ¶¶ 85, 106. In this light, ESG’s Lanham Act claim has significant echoes of a fraud claim. See PepsiCo,
Based on the pleadings, therefore, the Court declines to stray from “the body of cases holding that the [six-year] statute of limitations [for] New York state fraud claims” applies to claims brought under the Lanham Act. Mario Valente Collezioni, Ltd.,
B. Whether the SAC States a Claim
Having held that ESG’s claims are barred neither by, the CDA nor the governing statutes of limitations, the Court turns to Bleeping’s challenges to ESG’s pleadings as to the elements of those claims.
1. Has ESG Stated a Claim for Defamation?
The SAC brings claims for libel and libel per se (collectively, the “defamation claims”), alleging that Bleeping published statements about ESG and SpyHunter that are false, bring ESG into disrepute or contempt, impeach its reputation, and cause injury to its business and profession. See SAC ¶¶ 117-27. The gravamen of these claims is that Bleeping, through Quiet-man7, falsely represented that: (1) ESG engages in unlawful, deceptive pricing and advertising; and (2) SpyHunter is an ineffective, “rogue” product, more akin to mal-ware than the cmíi-málware product it purports to be.,
To state a claim for defamation under New York law, a plaintiff must allege that the defendant made a statement that was: (1) false, defamatory, and of and concerning the plaintiff; (2) published to a third party;, (3) made with the applicable level of fault; and (4) defamatory per se or caused the plaintiff special harm. See
Bleeping does not dispute that the allegedly defamatory statements were published to a third party or “of and concerning” ESG. But, it argues, the SAC does not adequately plead the other elements of the defamation claims. The Court, addresses these elements in turn.
a. Falsity
Bleeping argues that none of the statements at issue are actionable because each either (1) asserts true fact(s), or (2) is a protected statement of opinion. That is not correct.
“It is axiomatic that truth is an absolute, unqualified defense to a civil defamation action ... and that substantial truth is all that is required.” Nyitray v. Johnson, No. 96 Civ. 6160,
To qualify as a protected opinion, a “statement must be accompanied by a recitation of the accurate facts on which it is based. When a statement of opinion implies that it is based on unstated facts that justify the opinion, the opinion becomes an actionable ‘mixed opinion.’ ” Egiazaryan v. Zalmayev,
Whether a challenged statement is fact or opinion is a question of law to be decided by the Court. See Steinhilber,
(1) whether the specific language in issue has a precise meaning which is readily understood; (2) whether the statements are capable of being proven true or false; and (3) whether either the full context of the communication in which the statement appears or the broader social context and surrounding circumstances are such as to signal readers or listeners that what is being read or heard is likely to be opinion, not fact.
Davis,
Rather than sifting through a communication for the purpose of isolating and identifying assertions of fact, the court should look to the over-all context in which the assertions were made and determine on that basis whether the reasonable reader would have believed that the challenged statements were conveying facts about the ... plaintiff.
Id. at 270,
Applying these principles and utilizing this holistic approach, the Court holds that the SAC adequately pleads that Bleeping, through Quietman7, made false, defamatory statements of fact about ESG and SpyHunter. The allegedly defamatory statements cited in the SAC include Quiet-man7’s statements that:
• “SpyHunter by [ESG] is a program that was previously listed as a rogue product on the Rogue/Suspect Anti-Spyware Products List because of the company’s history of employing aggressive and deceptive advertising. It has since been delisted but some users have reported they still engage in deceptive advertising.” SAC, Ex. 6, at 3.15
• “SpyHunter is not classified as mal-ware or rogue security software and other antivirus and antimalware vendors do not target it for removal. Those security vendors which have tried in the past received threats of legal action for attempting to do so or agreed to legal settlements as a result of litigation brought forth by [ESG].” Id., Ex. 6, at 4.
. • “In my opinion SpyHunter is a dubious program with a high rate of false positives.” Id., Ex. 6, at 4.
• “SpyHunter by [ESG] is a dubious program and detection results should be analyzed carefully before you remove anything. When searching for malware removal assistance (and removal guides) on the Internet, it is not unusual to find numerous hits from untrustworthy and scam sites which mis-classify detections or provide misleading information. This is deliberately done more as a scam to entice folks into buying an advertised fix or using a questionable removal tool. SpyHunter ..., a dubious and ineffective program with a history of employing aggressive and deceptive advertising is one of the most common ‘so-called’ removal tools pushed • by these sites.” Id., Ex. 10, at 13-14.
The SAC alleges that these statements were “false and misleading when made.” Id. ¶ 81. In assessing the parties’ arguments as to whether these statements are reasonably susceptible to defamatory connotation, the Court finds that the Second Circuit’s decision in Flamm,
In Flamm, Flamm sued non-profit organizations for libel, alleging that they had made defamatory statements about him in their attorney referral directory.
In Gross, the New York Times had published a series of investigative reports alleging that Gross, New York’s chief medical examiner, had altered autopsy reports in cases in which people had died in police custody.
To be sure, viewed in isolation, words used in Quietman7’s posts like “scam,” “rogue,”
In this context, the words “rogue” and “dubious” accuse ESG of a defined course of conduct, and this claim, through discovery, can be proven or disproven.
Other features of the Forums page, at least as described in the pleadings, lend heft to Quietman7’s critical assessments as anchored in fact. Bleeping holds out the Forums page as tightly regulated .by its member groups.
To be sure, Quietman7’s Forums-page posts sporadically used qualifying statements, such as “[m]y personal recommendation” and “[i]n my opinion.” SAC, Ex. 7, at 2; id., Ex. 6, at 4. But these caveats do not “transform his [posts] into nonactiona-ble pure opinion, because in context, a reasonable reader could view his statements as supported by undisclosed facts despite these denials.” Davis,
In a final argument, Bleeping urges that,- to the extent Quietman7’s statements purport to report and recap consumer complaints or are otherwise truthful, they are “accurate and thus incapable of supporting a defamation claim.” Def. Br. 13; see id. at 14 (citing, as example- of truthful statement, -Quietman7’s statement that “SpyHunter is not classified as malware or rogue security software and other antivirus and antimalware vendors do not target it for removal”). But even if some discrete statements by Quiet-man? were accurate, that would not shelter his statements as a whole from a defamation claim, because the SAC adequately alleges that Quietman7’s overall derogatory depiction of ESG and SpyHunter was substantially false. See SAC ¶¶81-85.
The Court, therefore, holds that the SAC adequately pleads the first element of ESG’s defamation claims — false, defamatory statements about ESG.
b. Fault
Bleeping next challenges the defamation claims by arguing that ESG is a limited-purpose public figure, and that the SAC does not plead that Bleeping acted with the heightened level of fault corresponding to that status. This argument also fails.
The level of fault that a defamation plaintiff niust plead depends on the plaintiffs status. There are three recognized classes of plaintiffs: (1) “general public figures,” i.e., public officials. or persons whose conduct is generally a matter of interest to the public; (2) “limited public figures,” i.e., persons whose conduct is of interest to certain portions of the public as to a limited range of issues; and (3) “private figures.” See, e.g., Gertz v. Robert Welch, Inc.,
Here, Bleeping argues that ESG is a limited-purpose public figure and, therefore, to state a claim, must allege that Bleeping acted with actual malice. Def. Br. 11-13; Def. Reply Br. 8-9. The SAC’s key allegations that would bear on actual malice are that Bleeping: (1) never properly or fully tested SpyHunter, despite knowing that such testing is the only reasonable way to gauge its efficacy; (2) relied' on discredited and outdated sources assailing SpyHunter, despite knowing or recklessly disregarding that ESG had publicly disproved them; (3) has a financial incentive to disparage ESG because it profits from sales of competing products; and (4) refused to correct or retract its defamatory statements when ESG confronted it. SAC ¶¶ 7, 12-13, 82-85, 96. These allegations, Bleeping argues, do not plausibly support the conclusion that Bleeping acted with actual malice. Def. Reply Br. 8-9.
This argument fails at the threshold: Although the facts adduced in discovery may yet show that ESG is a limited-purpose public figure, the Court cannot, on the pleadings, conclude that ESG must be so. See Kapetanovic v. Cannell, No. 97 Civ. 2224,
The Second Circuit has adopted a •four-part test to determine whether a plaintiff is a limited-purpose public figure. To qualify, a plaintiff must have: “(1) successfully invited public attention to [its] views in an effort to influence others prior to the incident that is the subject of litigation; (2) voluntarily injected [itself] into a public controversy related to the subject of the litigation; (3) assumed a position of prominence in the public controversy; and (4) maintained regular and continuing access to the media.” Lerman v. Flynt Distrib. Co.,
Moreover, even assuming an identifiable public controversy, the Court cannot, based on the pleadings, conclude confidently that ESG “voluntarily injected” itself into that controversy. Bleeping argues that ESG’s sales and recognition alone satisfy this requirement. Def. Br. 12. But New York courts have held that “the mere fact that a business enterprise is successful is an insufficient reason to deem it a public figure.” Behr v. Weber, No. 16047/89,
The SAC does not allege any facts suggesting that ESG has taken a public position on the integrity of its business practices or the quality of its products. Nor would the extrinsic evidence that Bleeping has offered as to ESG’s purported litigiousness cure this problem. Even if ESG has brought multiple lawsuits challenging allegedly defamatory claims about its products, such conduct does not mark ESG’s “voluntary injection” into a public controversy on this matter. To the con
Absent a fuller factual record, the Court therefore cannot conclude that ESG is a limited-purpose public figure with regard to the subject of the statements at issue. It is thus premature to hold ESG to a heightened standard of actual malice. And the SAC — by alleging, inter alia, that Bleeping knowingly or recklessly relied on discredited and outdated sources, see SAC ¶¶ 83-85 — adequately pleads that Bleeping “acted in a grossly irresponsible manner without due consideration for the standards of information gathering and dissemination ordinarily followed by responsible parties.” Chapadeau,
c. Harm
Finally, Bleeping argues, for the first time in a footnote in its reply, that ESG has failed to plead harm — ie., either special damages or libel per se. Def. Reply Br. 9 n.10. This argument is baseless.
Under New York law, a written statement constitutes libel per se where it “tend[s] to injure another in his or her trade, business, or profession.” Zherka v. Amicone,
Here, the SAC alleges that Bleeping made statements to the effect that ESG engages in fraudulent business practices, peddling an ineffective product which is the exact opposite of what it purports to be. See, e.g., SAC ¶80; id., Ex. 6, at 4 (“SpyHunter is a dubious program with a high rate of false positives.”); id., Ex. 10, at 14 (“[ESG has] a history of employing aggressive and deceptive advertising.”). Such statements, which “go directly to'the nature, characteristics and qualities of ESG’s business and its SpyHunter product,” id. ¶ 81, “impugnf ] the basic integrity or creditworthiness of [ESG’s] business,” Celle v. Filipino Reporter Enters. Inc.,
2. Has ESG Stated a Claim for Trade Libel/Commercial Disparagement?
The SAC brings a claim for trade libel/commercial disparagement, alleging that Bleeping published false statements that “impugn the integrity of ESG and the quality and efficacy of SpyHunter.” SAC ¶ HO; see id. ¶¶ 108-15.
Under New York law, “[t]rade libel or product disparagement' is an action to recover for words or conduct which tend to disparage or negatively reflect upon the condition, value or quality of a product or property.” Angio-Med. Corp. v. Eli Lilly & Co.,
Bleeping argues that, insofar as the SAC relies on the same' statements and alleged harm that form the basis for ESG’s defamation claims, ESG’s trade libel claim must be dismissed as duplicative of those claims. Def. Br. 19-20; Def. Reply Br. 5. On this, it is correct. See Hengjun Chao v. Mount Sinai Hosp.,
ESG argues that its trade libel claim is not duplicative because it is “directed to different statements on different topics within a given post, rather than the ‘same statements.’” PI. Br. 5 n.2. Both sets of claims should be permitted to go, forward,
This argument fails to avert dismissal because, to the extent the SAC’s trade libel claim is not duplicative of its defamation per se claim, it suffers from another fatal deficiency: The SAC does not adequately plead special damages. See Ruder,
“Language which merely disparages a product is not actionable unless special damages are pleaded and it appears that such damage is a natural and immediate consequence of the disparaging statements.” Angio-Med. Corp.,
Here, as to damages, the SAC alleges only that as a result of Bleeping’s unlawful acts in general, “ESG has and will continue to suffer significant monetary and reputational injury in amounts that will be proven at trial but that are believed to exceed $75,000.” SAC ¶ 115. Given the pleading requirement of special damages, that allegation is far “too generalized to survive dismissal.” Kirby,
The SAC, therefore, has not pled a pri-ma facie claim for trade libel. This claim must be dismissed.
3. Has ESG Stated a Lanham Act Claim for False Advertising?
Finally, the SAC brings a claim for false advertising under Section 43(a) of the Lan-ham Act. It alleges that Bleeping made false and misleading statements about ESG and SpyHunter which were intended to deceive consumers as to the nature,
Section 43(a) prohibits making “false or misleading description[s] ... or ... representation^] of fact,” in “commercial advertising or promotion,” about the “nature, characteristics, [or] qualities ... of [one’s own] or another person’s goods, services, or commercial activities.” 15 U.S.C. § 1125(a)(1). To be actionable under the Lanham Act, statements must constitute “commercial advertising or promotion.” Romeo & Juliette Laser Hair Removal,
Bleeping moves to dismiss ESG’s Lan-ham Act claim on the grounds that: (1) the statements challenged in the SAC are not “commercial advertising or promotion”; and (2) ESG has not adequately pled the other elements, of a § 43(a) claim. The Court first addresses whether Quietman7’s posts constitute “commercial advertising or promotion,” and then considers the remaining elements.
a. Commercial Advertising or Promotion
The “touchstone of whether a defendant’s actions may be considered ‘commercial advertising or promotion’ under the Lanham Act is that the contested representations are part of an organized campaign to penetrate the relevant market.” Fashion Boutique of Short Hills, Inc. v. Fendi USA, Inc.,
Bleeping argues that the SAC does not adequately plead “commercial, advertising or promotion” because: (1) the statements it challenges are not commercial speech; (2) it does not allege sufficient dissemination to the relevant consumer market; and (3) it does not allege that Bleeping itself is ESG’s competitor. Def. Br. 21-24; Def. Reply Br. 9-10. The Court considers these arguments in turn.
i. Commercial Speech Made for the Purpose of Influencing Consumers
Pure commercial speech “does no more than propose a commercial transaction.” Bolger v. Youngs Drug Prods. Corp.,
Applying these standards, the Court holds that Quietman7’s posts are commercial speech. In nearly all of them, Quietman7, after lambasting ESG’s Spy-Hunter, .recommends that the reader “remove [that] program and replace it with a trustworthy alternative,” such as Malware-bytes Anti-Malware and other Affiliate products. SAC, Ex. 7, at 2-3 (emphasis added); id., Ex. 8, at 3; see also id., Ex. 10, at 10, 13-14; see also Tr. 21 (acknowledgement by Bleeping’s counsel that, in various posts, Quietman7 both disparages ESG’s product and encourages the purchase of Malwarebytes’ product “as an alternative”). By promoting Bleeping’s Affiliate products as superior to SpyHunter, these posts unmistakably constitute advertisements for the Affiliate products. (Indeed, Quietman7 goes one step further, providing links through which users can purchase the products. See SAC ¶ 91; id., Ex. 7, at 2-3; id., Ex. 8, at 3; id., Ex. 10, at 13-14.) And, by alleging that Bleeping earns a commission on directed sales of those products, the SAC adequately pleads that Bleeping has an economic incentive to engage in such promotion.
Therefore, Quietman7’s posts are fairly pled to be “commercial speech” “made for the purpose of influencing consumers to buy [products in which Bleeping has a financial stake].” Gmurzynska,
ii Dissemination to the Relevant Consumer Market
To constitute commercial advertising or promotion, commercial. speech “must be disseminated sufficiently, to the relevant purchasing public.” Gmurzynska,
Here, the SAC alleges that Quiet-man7’s posts were part of “an organized campaign by Bleeping to penetrate the market for anti-malware products” by repeating or linking to negative reviews of SpyHunter “any time a new forum topic mentioned] or inquired] about ESG.” SAC ¶ 106.
Here, the “relevant purchasing public” consists of potential consumers of anti-malware software. Quietman7’s posts were aimed at such consumers: Bleeping advertises itself as a “premier destination” for computer users seeking information about computer technology and recommendations regarding malware removal. See SAC ¶¶ 2, 4, 6, 59.
The SAC therefore adequately pleads that the challenged statements were “disseminated sufficiently” to the relevant consumer market. Gmurzynska,
Hi. Competitive Relationship with the Plaintiff
In Gordon & Breach, Judge Sand held that, to constitute “commercial advertising or promotion” under § 43(a), the allegedly false representation, must be made by someone who is “in commercial competition with [the] plaintiff.”
In Lexmark, the Supreme Court held that, to have standing to sue under § 43(a), a plaintiff need not allege that the parties are direct competitors.
b. False Advertising
The SAC adequately pleads the other elements of ESG’s § 43(a) claim: (1) a false or misleading statement that (2) misrepresents an inherent quality or characteristic of the product, (3) is placed in interstate commerce, and (4) injures the plaintiff by diverting sales or lessening. the goodwill associated -with its products. See Merck Eprova,
First, for the reasons reviewed in connection with the defamation claims, the SAC pleads that Bleeping made false statements about ESG and SpyHunter. Its allegations, therefore, necessarily satisfy the Lanham Act’s more lenient requirement that the challenged statements be “false or misleading.” 15 U.S.C. § 1125(a)(1) (emphasis added); see Merck Eprova,
Second, Bleeping’s statements about SpyHunter’s ineffectiveness implicate inherent qualities and characteristics of that product. Accordingly, they are likely to “influence the purchasing decisions of consumers,” and are thus “material” for purposes of § 43(a). Mylan Pharm., Inc. v. Procter & Gamble Co.,
Third, “[t]here is no dispute that posting to internet fora placed the statements in interstate commerce.” Romeo & Juliette Laser Hair Removal,
Fourth, the SAC alleges that, “[a]s a direct and proximate result of [Bleeping’s] unlawful acts, ESG has suffered. .., significant monetary and reputational injqry, including direct diversion of sales and a lessening of goodwill associated with its products.” SAC ¶ 107; see also id. ¶ 99. According to the SAC, Bleeping’s members— many of whom “do not know the ‘basic concepts’ that underlie computer ... issues” — “rely on Bleeping’s representations and recommendations when purchasing ... [anti-malware products].” Id. ¶ 4. Indeed, the SAC alleges, Bleeping itself acknowledges its ability to influence consumers. See id. ¶ 90 (“Bleeping’s instructions to its users are heeded — in fact, Bleeping openly touts its influence on the purchasing decisions of its users. After disparaging ESG and SpyHunter4, Quietman7 trumpeted that ‘[s]ince we [Bleeping] do not recommend this program [SpyHunter], I doubt that any of our members use
* * *
In sum, the SAC adequately pleads each element of ESG’s Lanham Act claim. Bleeping’s motion to dismiss this claim is, therefore, denied.
CONCLUSION
For the foregoing reasons, Bleeping’s motion to dismiss is granted in part and denied in part. ESG’s trade libel/commercial disparagement claim is dismissed. Bleeping’s motion is in all other respects denied. The Clerk of Court is respectfully directed to terminate the motions pending at docket numbers 16 and 28,
The parties are directed to confer with each other and submit to the Court, by Monday, July 18, 2016, a proposed Civil Case Management Plan and Scheduling Order in accordance with the Court’s Individual Rules. See http://www.nysd. uscourts.gov/judge/Engelmayer.
SO ORDERED.
. Spyware is a "type of malware that can monitor or control your computer use. It may be used to send consumers pop-up ads, redirect their computers to unwanted websites, monitor their Internet surfing, or record their keystrokes, which, in turn, could lead to identity theft.” SAC ¶ 22,
. Bleeping also "provides its members with a ‘current list’ of the individuals who are in each ‘member group’ and informs users of its website about the ‘member group’ status of such persons when they post information on Bleeping’s [F]orums, including whether they are a designee to act on behalf of Bleeping.” SAC ¶ 46.
. See, e.g., SAC, Ex. 6, at 4 (9/28/14 post in "spyhunter vs Malwarebytes vs iobit” forum topic: "If you have downloaded and scanned with SpyHunter, detection results should be analyzed carefully before you remove anything. Based on this information, it is in my opinion that you remove this program and replace it with highly regarded alternatives such as Malwarebytes Anti-Malware or Emsi-soft Anti-Malware.”). The SAC alleges that Emsisoft is another Affiliate that pays Bleeping commissions. Id. ¶ 42.
. The statute defines "interactive computer service" ("ICS”) as "any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and such systems operated or services offered by libraries or educational institutions.” 47 U.S.C. § 230(f)(2).
. The statute defines "information content provider” ("ICP”) as "any person or entity that is responsible, in whole or in part, for the creation or development of information provided through the Internet or any other interactive computer service.” 47 U.S.C. § 230(f)(3).
.See, e.g., Nemet Chevrolet,
. This case is thus distinguishable from the cases cited by Bleeping, where, on the facts pled, the defendant website operator had performed only "traditional editorial functions” with respect to content that was created by third-party ICPs. See, e.g., Westlake Legal Grp. v. Yelp, Inc., 599 Fed.Appx, 481, 485 (4th Cir.2015), cert. denied, — U.S. -,
. The SAC alleges that Quietman7 was appointed as an Advisor in March 2006, SAC ¶¶ 66-68, and as a Global Moderator in September 2007, id. ¶¶ 69-70.
. Based on Quietman7’s later appointment to the higher position of Global Moderator, Bleeping argues that he was no longer an Advisor at the time he published the posts recited in the SAC. Def. Br. 6 n.4; Def. Reply Br. 1-2. However, nothing in the SAC or its cognizable attachments suggests that Quiet-man? was ever stripped of his "Advisor” authority or his designation as an "expert.” Therefore, drawing all reasonable inferences in ESG's favor, the Court concludes that Quietman7 was acting in his capacity as both an Advisor and a Global Moderator when he posted the challenged statements.
. Bleeping cites several cases for the proposition that a person’s "moderator” status, without more, does not render a website operator liable for his conduct. See Def. Br. 7 (citing Internet Brands, Inc. v. Jape,
Moreover, the fact that Quietman7 may have been a "volunteer” does not, as Bleeping ar
. The May 7, 2015 post in the "New PCloclc CiyptoLocker Ransomeware discovered” forum topic, and the June 1, 2015 post in the "Rogue partition driving me insane!!!” topic, each states, in pertinent part:
When searching for malware removal assistance (and removal guides) on the Internet, it is not unusual to find numerous hits from untrustworthy sources and scam sites which mis-classify detections or provide misleading information. This is deliberately done more as a scam to entice folks into buying an advertised fix or using a questionable removal tool. SpyHunter (SpyHun-ter-Installer.exe), a dubious and ineffective program from Enigma Software Group (ESG) with a histoiy of employing aggressive and deceptive advertising is one of the most common 'so-called' removal tools pushed by these sites. .
Please read this topic [the 2014 Post] for more important information about SpyHun-ter.
SAC, Ex. 10, at 3, 10.
By way of comparison, the 2014 Post states, in pertinent part: SpyHunter by Engima Software Group USA, LLC is a program that was previously listed as a rogue product on the Rogue/Suspect Anti-Spware Products List because of the company’s history of employing aggressive and deceptive advertising. It has since been delisted but some users have reported they still. engage in deceptive advertising.. ..
Further, when searching for new malware or malware removal assistance (and removal guides) on the Internet, it is not unusual to find numerous hits from untrustworthy sites that provide inadequate removal instructions and then offer a tool that a visitor must purchase before it removes anything. These sites recommend a pay-to-clean program, rather than a free-to-clean program, because the site owner will make a commission on the sale of the program. SpyHunter (SpyHunter-Installer.exe) is one of the most common removal tools pushed by these sites.
Id., Ex. 6, at 3-4.
. ESG makes a separate argument: that the 2014 Post was republished by virtue of Bleeping’s later (post-January 5, 2015) alterations of that post. See PL Br. 24-25. That argument, however, is not persuasive. Where an author or publisher makes substantive, not technical, modifications to an online post, it may constitute a republication. See Biro v. Conde Nast,
The Court is similarly unpersuaded that Quietman7’s act of hyperlinking to the 2014 Post in separate forum topics on the Bleeping website was akin to posting it on an entirely separate website, thereby republishing it to “new audience.” Compare Firth v. State of New York,
. Even if the Court applied a one-year limitations period, the result would not change— as with ESG’s state-law claims, some underlying statements were made within a year of this lawsuit.
, Even if the Court were to conclude that the 2014 Post was not republished within the limitations period, see supra pp, 16-18, it would still be proper to consider the state-merits contained therein to give context to QuietmanTs timely posts, which hyperlinked to the 2014 Post.
. Bleeping emphasizes that Quietman7 did not state that SpyHunter is a rogue product, but rather that: (1) it "was previously listed as a rogue product on the Rogue/Suspect Anti-Spyware Products List”; (2) it "is not [currently] classified as malware or rogue security software”; and "other antivirus and antimal-ware vendors do not target it for removal.” Def. Br. 13-14. These statements, Bleeping argues, are non-defamatoiy and "undeniably true.” Id. But the context of Quietman7’s use of the word "rogue” makes his implication clear that the underlying practices that gave rise to that earlier classification persist. For instance, Quietman7’s statement that Spy-Hunter was previously listed as a rogue product is immediately followed by an assertion that "some users have reported [Engima] still mgage[s] in deceptive advertising.” SAC, Ex. 6, at 3 (emphasis added). And his statement that SpyHunter is not currently targeted for removal is followed by an allegation that "security vendors which have tried [to target it] in the past have received threats of legal action for attempting to do so or agreed to legal settlements as a result of litigation brought forth by Enigma Software.” Id., Ex. 6, at 4. Viewed in context, the challenged statements convey that, although SpyHunter has been "delisted,” it remains a rogue product, and, but for ESG's wrongful threats and litigation tactics, would still be so classified. See Church of Scientology Inti,
. At argument, ESG’s counsel interpreted Quietman7’s claim that "we are rogue” as conveying "that we hold ourselves out ... as a pretense of being an anti-malware trustworthy software that people should subscribe to when, in fact, we’re not. We're coming up with false positives or ... ways to deceive the consumer into thinking we’re the product they should buy.” See Tr. 50-51. Bleeping's counsel countered that Quietman7’s statements could be construed, more benignly, to mean only that SpyHunter has a high error rate — not that it deliberately generates false results so as to induce sales. See Tr. 13 (”[P]erhaps reasonable minds can disagree about how you read it.”). But even if Quiet-man7's statements could be so construed, a motion to dismiss must be denied where, as here, "the communication at issue, taking the words in their ordinary meaning and in context, is also susceptible to a defamatory connotation.” Davis,
Bleeping separately argues that the phrase "high.rate of false positives" used by Quiet-man? is too imprecise to be verifiable. See Tr. 9. The Court rejects that argument, as this allegation is no less exact than the allegations held potentially defamatory in Flamm and Gross. The claim of a “high rate of positives” could be tested, for example, by comparing SpyHunter’s rate with those of competing products. That an accusation is "somewhat ... vague and difficult to prove” does not mean that it is not objectively verifi- - able. See Church of Scientology Int'l,
. This case is thus distinct from those, cited by Bleeping, holding statements in an online forum to be non-actionable opinion. See Def. Br. 15 (citing Sandals Resorts Int’l v. Google, Inc.,
. As the Court of Appeals stated in Gross, it is unnecessary that “every word and assertion in [a] disputed [publication] is false or defamatory.’'
. As to the final point, the SAC contains no allegations bearing on ESG’s reputation for litigiousness. Instead, on this point, Bleeping relies on a document it attached as an exhibit to its' initial motion to dismiss. See Dkt. 17, Ex. 4. But this document — a screenshot, of a third-party's website — is neither attached to nor incorporated by reference in the SAC. Accordingly, it is not cognizable here. See Madu, Edozie & Madu, P.C. v. SocketWorks Ltd. Nigeria,
. The two cases on which Bleeping relies in arguing the contrary are inapposite. See’ Def. Reply Br. 8-9. In Reliance Ins. Co. v. Barron’s,
. Given this holding, the Court need not determine whether ESG has adequately pled special damages. See Davis v, Ross,
. See also Angio-Med. Corp.,
. See SAC ¶¶ 10-12 (because Bleeping receives commissions from Malwarebytes but not ESG, it has “a direct financial interest in driving traffic and sales to Malwarebytes and driving traffic and sales away from ESG”), 37 (“By providing Affiliate Links, Bleeping earns a commission if a consumer simply clicks on the link and then purchases the product that Bleeping is peddling.”), 42-43 (noting that Bleeping "generates revenues through advertising and commissions from affiliates,” such as Malwarebytes, Emsisoft, and SuperAntiS-pyware), 44 ("Bleeping functions as a sales arm of Malwarebytes.”).
. Notably, the SAC alleges that Bleeping goes beyond ridiculing ESG: "To further influence its users to purchase Malwarebytes’ products and not ESG products, [it also] remove[s] links posted by users that suggest using an ESG product.” SAC ¶ 92; see also id., Ex. 11 at 4 (8/5/15 post by Quietman7) (stating that, “per Bleeping Computer policy,” Quietman7 had removed user’s post referencing SpyHunter; post then criticizes ESG and SpyHunter).
. Bleeping’s counsel acknowledged at argument that the Bleeping Forums page is a site which "consumers of [anti-malware] products are apt to be on.” Tr. 21.
. These figures are drawn from a screenshot of the "Advertise on BleepingComputer.com” page of Bleeping’s website, submitted as an attachment to ESG's counsel's declaration. Prager Deck, Ex. 1. "For purposes of a 12(b)(6) motion to dismiss, a court may take judicial notice of information publicly announced on a party's website, as long as the website’s authenticity is not in dispute and ‘it is capable of accurate and ready determination.’ ” Doron Precision Sys., Inc. v. FAAC, Inc.,
. In any event, even if a competitive relationship were required, the SAC's allegations that Bleeping, by virtue of its Affiliate program, "functions as a sales arm of Malware-bytes,” SAC ¶¶ 42-44, which is a "direct ESG competitor,” id. ¶ 10, would satisfy this requirement.
