Memorandum Opinion and Order
In this putative class action, Kevin Muir alleges that Playtex Products, LLC, and Playtex Products, Inc. (together, “Playtex”), sold him a diaper disposal product, the Diaper Genie II Elite, that falsely claimed on its packaging that it had been “Proven # 1 in Odor Control.” Doc. 1. The complaint advances a claim under the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), 815 ILCS 505/1 et seq., and submits that Muir suffered an economic injury as a result of Playtex’s deception. Playtex has moved to dismiss the suit under Federal Rule of Civil Procedure 12(b)(1) for lack of standing and, alternatively, under Rule 12(b)(6) for failure to state a claim. Doc. 20. The motion is denied.
Background
In considering Playtex’s motion, the court assumes the truth of the complaint’s factual allegations, though not its legal conclusions. See Munson v. Gaetz,
In 2008, Playtex launched the Diaper Genie II Elite, a diaper disposal system that uses a proprietary film lining. Doc. 1 at ¶¶ 13-14, 17. Until January 2011, the front of each Diaper Genie II Elite package displayed a large gold banner stating “Proven # 1 in Odor Control* ” in large lettering. Id. at ¶ 16. According to the complaint, the asterisk referenced a disclaimer on the “back” of the package, which stated in fine print: “ *proven # 1 in odor control when tested against other major competitors that use ordinary gar-
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Id. at ¶ 16. Playtex’s motion to dismiss of the front panel,” and attaches what it argues that “the photograph of the box calls “a complete photo” of the front panel, that Plaintiff includes in his Complaint which has the disclaimer at the bottom: misleadingly crops off the bottom section
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Doc. 22 at 13; Doc. 22-1. Muir’s opposi- attached to Playtex’s motion “is not a piction brief responds that the photograph ture of the packaging on store shelves, but
The court may consider “documents attached to a motion to dismiss ... [as] part of the pleadings if they are referred to in the plaintiffs complaint and are central to his claim.” Rosenblwm v. Travelbyus.com Ltd.,
Several tests have concluded that the Diaper Genie II Elite is not superior to diaper disposal systems that, like the Diaper Genie II Elite, utilize proprietary film bags, as opposed to diaper disposal systems that use ordinary garbage bags or carbon refills. Doc. 1 at ¶¶ 17-19. In the sole test that Playtex conducted against another diaper disposal system using a proprietary film bag, the Diaper Dékor, the Diaper Genie II Elite underperformed in odor control. Id. at ¶ 17. And in 2010, Munchkin, Inc. — the manufacturer of the Arm & Hammer Diaper Pail, which also uses a proprietary film — retained an independent laboratory to test the odor control of competitor diaper pails, including the Diaper Genie II Elite. Id. at ¶ 19. The test concluded that the Arm & Hammer Diaper Pail controlled odor better than the Diaper Genie II Elite. Ibid. In November 2010, the National Advertising Division of the Better Business Bureau recommended that Playtex discontinue its “Proven # 1 in Odor Control” claim because it “convey[s] a broad claim of comparative superior product efficacy” without scientific evidence establishing its truth. Id. at ¶ 18. Playtex stopped using the “Proven # 1” claim after Munchkin filed suit against Playtex for false labeling in January 2011. Id. at ¶ 15.
In or around July 2010, Muir purchased a Diaper Genie II Elite for approximately $35 at a store in McHenry, Illinois. Id. at ¶ 9. “After reading the Product label, including Playtex’s ‘Proven # 1’ claim, [Muir] purchased the Diaper Genie II Elite in reliance on the ‘Proven # 1’ claim’ believing that the Diaper Genie II Elite was the superior odor control product on the market.” Ibid. “Had [Muir] known the truth about Playtex’s misrepresentations and omissions, he would not have paid for the Diaper Genie II Elite. As a result, [Muir] suffered injury in fact and lost money.” Ibid.
Muir claims that Playtex violated the ICFA by having “misrepresented and de
Discussion
Playtex has moved to dismiss under Rule 12(b)(1) for lack of standing and under Rule 12(b)(6) for failure to state a claim. Each ground will be considered in turn.
I. Rule 12(b)(1): Whether Muir Has Standing
To establish Article III standing, a plaintiff must allege injury-in-fact, causation, and redressability. See Lujan v. Defenders of Wildlife,
The plaintiffs in Aqua Dots sued the manufacturer and distributors of a children’s toy consisting of beads containing a chemical that, when swallowed, could cause severe illness and even death. Id. at 749. The plaintiffs were not physically injured children or their parents, but instead were the parents of children who had suffered no physical injury. Id. at 750. The Seventh Circuit held that the plaintiffs had Article III standing, explaining: “[The fact] that members of the class did not suffer physical injury ... does not mean that they were uninjured. The plaintiffs’ loss is financial: they paid more for the toys than they would have, had they known of the risks the beads posed to children. A financial injury creates standing.” Id at 751.
The same result obtains here. As just noted, Muir alleges that if he had known that Playtex’s “Proven # 1” claim was false, he would not have purchased the Diaper Genie II Elite and certainly would not have paid a premium price. That is, Muir alleges that Playtex’s product was worth less than what he paid because the product was not, in fact, better than its competitors at odor control. That is sufficient to establish standing under Aqua Dots. See also Bridenbaugh v. Freeman-Wilson, 2
In urging the contrary result, Playtex argues that Muir cannot establish injury-in-fact because “he fails to allege any facts whatsoever about how his Elite actually performed ” and “never identifies what less expensive product (if any) he would have purchased absent Playtex’s purported misrepresentations about the Elite.” Doc. 22 at 10-11. These arguments cannot be reconciled with Aqua Dots. The Aqua Dots plaintiffs did not have to allege that the toys failed to meet their expectations to establish standing, and nor did they have to identify which alternative product they would have purchased. Rather, the Seventh Circuit held that the plaintiffs’ alleged financial injury was incurred, and their standing established, at the time of purchase given their allegation that “they paid more for the toys than they would have ... had they known of the risks the beads posed to children.” Aqua Dots,
II. Rule 12(b)(6): Whether the Complaint States an ICFA Claim
To state an ICFA claim, a plaintiff must allege: “(1) a deceptive act or practice by the defendant, (2) the defendant’s intent that the plaintiff rely on the deception, (3) the occurrence of the deception in the course of conduct involving trade or commerce, and (4) actual damage to the plaintiff (5) proximately caused by the deception.” Avery v. State Farm Mut. Auto. Ins. Co.,
A. Deceptive Conduct
Under the ICFA, “a statement is deceptive if it creates a likelihood of deception or has the capacity to deceive.” Bober v. Glaxo Wellcome PLC,
Playtex first argues that the “Proven # 1” claim is not deceptive because, even though the Diaper Genie II Elite was not tested against or proven superior to diaper disposal products using a proprietary film lining, the product’s package disclosed, in the text following the asterisk, that the claim was limited to “test[s] against other major competitors that use ordinary garbage bags and/or carbon refills under the most rigorous conditions of emptying the pail.” Doc. 22 at 12. The legal principle underlying Playtex’s argument is correct: an allegedly deceptive statement must be considered in light of the total mix of information provided to the consumer, meaning that a statement that would have been deceptive in isolation can be non-deceptive when placed in context. See Davis,
Playtex next argues that it did not commit a deceptive act because the “Proven #1 in Odor Control” statement is “nothing more than puffery.” Doc. 22 at 14. “Puffing denotes the exaggerations reasonably expected of a seller as to the degree of quality of his or her product, the truth or falsity of which cannot be precisely determined.” Barbara’s Sales, Inc. v. Intel Corp.,
Playtex’s “Proven # 1 in Odor Control” claim is different. The claim leaves no doubt as to the criterion — odor control — upon which to judge the Diaper Genie II Elite. And superiority in odor control is “capable of precise measuring,” as underscored by Playtex’s use of the word “proven” and the existence of scientific studies conducted by Playtex and Munchkin. A reasonable consumer could certainly rely on the “Proven # 1” claim in concluding that Playtex’s product had been proven superior to its competitors and therefore in deciding whether to purchase the product. Accordingly, the “Proven # 1” claim is not mere puffery. See People ex rel. Peters v. Murphy-Knight,
B. Actual Damages
The actual damages element of an ICFA claim is distinct from the Article III injury-in-fact requirement, so it is necessary to determine whether the complaint adequately pleads actual damages even though the court already has held that Muir had adequately pleaded Article III standing. See Rifkin v. Bear Stearns & Co.,
“Illinois courts have generally allowed damages claims based on diminished value of a product regardless of whether it has yet malfunctioned, provided the product contains a manifested defect or current condition affecting value.” Miller v. William Chevrolet/GEO, Inc.,
Muir alleges that he was deprived of the benefit of the bargain because the Diaper Genie II Elite product was actually worth less than what it would have been worth had it actually been proven superior in odor control to its competitors. That is sufficient to plead actual damages under the ICFA. See Dewan,
C. Proximate Cause
Finally, Playtex argues that Muir has not adequately alleged that its
Conclusion
For the foregoing reasons, Playtex’s motion to dismiss is denied. Playtex shall answer the complaint by November 20, 2013.
Notes
While opposing litigants often disagree about key facts, it is surprising that Muir and Playtex would disagree about factual matters— whether the disclaimer appeared on the front or the back of the Diaper Genie II Elite package, and whether the photograph in Playtex's motion was taken from the package or lifted from an advertisement — that do not turn on, say, conflicting memories, but rather are almost certain to be objectively and indisputably ascertained. The party that is proven wrong on these two matters is likely to emerge with damaged credibility. It would be far better for that party (and its lawyers) to confess error quickly than to put its opponent to the time and expense of fighting an unnecessary battle.
