Carter v. Ralph Lauren Corporation

CourtDistrict Court, S.D. New York
DecidedJuly 20, 2023
Docket1:21-cv-01202
StatusUnknown

This text of Carter v. Ralph Lauren Corporation (Carter v. Ralph Lauren Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carter v. Ralph Lauren Corporation, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK DONNA CARTER, Individually and On Behalf of All Others Similarly Situated, MEMORANDUM Plaintiff, OPINION & ORDER

- against - 21 Civ. 1202 (PGG) RALPH LAUREN CORPORATION, Defendant.

PAUL G. GARDEPHE, U.S.D.J:: □ Plaintiff Donna Carter brings this class action against Defendant Ralph Lauren Corporation (“Ralph Lauren’), pursuant to the Class Action Fairness Act of 2005 (““CAFA”), 28 U.S.C. § 1332(d)(2). (Am. Cmplt. (Dkt. No. 16) § 25) Plaintiff alleges violations of Sections 349 and 350 of the New York General Business Law (“GBL”), breach of warranty under New York law and the Magnuson-Moss Warranty Act (““MMWA”), and negligent misrepresentation, fraud, and unjust enrichment under New York common law. (Id. {J 58-81) Defendant Ralph Lauren Corporation has moved to compel arbitration or, in the alternative, to dismiss the Amended Complaint, pursuant to Fed. R. Civ. P. 12(b)(6). (Def. Mot. (Dkt. No. 21)) Defendant has also moved to strike the Amended Complaint’s class allegations. (Def. Br. (Dkt. No. 22) at 31-32) For the reasons stated below, Ralph Lauren’s motion to compel arbitration will be denied, and its motion to dismiss will be granted. Given that the Amended Complaint will be dismissed, the Court will deny as moot Defendant’s motion to strike the Amended Complaint’s class allegations.

BACKGROUND I. FACTS A. The Ralph Lauren Polo Cotton Sweaters Ralph Lauren “manufactures, markets, labels, and sells V-Neck Pullover Sweaters in various colors, purporting to be ‘100% Pima cotton,’ under the Ralph Lauren Polo brand.” (Am. Cmplt. (Dkt. No. 16) § 1) Plaintiff alleges that she purchased the V-Neck Pullover Sweater shown below (the “Sweater’’) for approximately $80.00, plus tax, at the Ralph Lauren Store, Woodbury Common Premium Outlets, 498 Red Apple Court, Central Valley, New York, in or around December 2019. (id. 4 8) The tags attached to the Sweater are shown below: Benicio. ya a

eee ee, □ | ORTOR ee me. § eet

(Id. 9-10) The Amended Complaint alleges that “[t]he back collar of the [p]roduct, where consumers know to look to discover what clothing is made of, states ‘PIMA COTTON.’” (d. □

9) “The required fiber tag, affixed to the interior of the garment, certifies the [p]roduct is not merely ‘Pima Cotton’ but ‘100% Pima Cotton.’” (Id. 4 10) The Amended Complaint further alleges that “[t]he main criteri[on] to identify the type of cotton or other fiber is the fiber length.” (Id. § 3) “The length of cotton fiber affects its qualities and price — the longer the cotton fiber, the stronger, softer, and more durable the resulting fabric.” (Id. § 4) These factors “‘create[] incentives for manufacturers to mix cotton byproducts and shorter fiber cotton with Pima cotton to gain additional profits at the expense of consumers.” (Id. §5) The “‘Single-Fiber-Test’” adopted by ASTM International can “determine the length and length distribution of manufactured staple fibers in clothing.”! (Id. 6) The Amended Complaint cites to “ASTM International, D7641, Standard Guide for Textile Fibers,” as support for its claim that “Pima cotton (Gossypium barbadense L), an extra-long staple (‘ELS’) barbadenses, is between approximately 1.2 and 1.44 inches.” (Id. 7 & n.2)* The Amended Complaint further alleges that laboratory analysis performed on the Sweater, “in accordance with the ASTM D5103 standard, revealed all fibers were shorter than 1.200 inches . . . and shorter than 1.080 inches ... , below the range for Pima cotton.” (Id. § 13)° Plaintiff's expert, Dr. Sabit Adenur, has reviewed the results of this laboratory analysis. (Id. 4 14) “Dr. Adenur adjusted for a twenty-five . . . percent reduction of fiber length to account for manufacturing, but this adjustment only results in fifty-three . . . percent of the fibers falling

' According to Plaintiff, ASTM International is “a global standards body.” (Am. Cmplt. (Dkt. No. 16) J 6) According to Plaintiff's expert, Dr. Sabit Adenur, “ASTM D7641 Standard Guide for Textile Fibers lists the staple length of cotton fibers such as American Upland, Egyptian, American Egyptian, etc.” (Am. Cmplt., Ex. B (Dkt. No. 16-2) at 7) 3 According to Plaintiffs expert, Dr. Adenur, the “ASTM D5103 Standard Test Method for Length and Length Distribution of Manufactured Staple Fibers (Single-Fiber Test). . . . is the test method that is suitable to determine the fiber lengths in finished products such as towels.” (Am. Cmplt., Ex. B (Dkt. No. 16-2) at 7)

under the Pima classification.” (Id. § 15) Plaintiff further alleges that Dr. Adenur’s “assumptions are generous and assume that all forty-six .. . fibers that are longer than 1.12 inches are also longer than 1.2 inches, which is unlikely.” (Id. § 16) According to Plaintiff, “felither way, the percent of Pima cotton used in the [p]roduct is significantly below the advertised and certified figure,” “[t]he [p]roduct is not made entirely from Pima cotton, but mainly from less expensive shorter cotton fibers or cotton byproduct fibers,” and “[n]Jo reasonable consumer will expect that clothing advertised as containing ‘100% Pima Cotton’ would contain significantly less Pima cotton than promised.” (Id. | 17-19) The Amended Complaint goes on to allege that “[r]easonable consumers must and do rely on a company to honestly identify and describe the components and features of what they buy.” (Id. § 20) “Ralph Lauren]’s brand is synonymous with the highest quality, so that when consumers see ‘100% Pima Cotton,’ they will trust it.” (1d. § 37) Plaintiff further alleges that (1) “[t]he value of the [p]roduct that [P]laintiff purchased was materially less than its value as represented by [Ralph Lauren]”; (2) Ralph Lauren “sold more of the [p]roduct and at higher prices than it would have in the absence of this misconduct, resulting in additional profits at the expense of consumers”; (3) “[h]ad [P]laintiff and proposed class members known the truth, they would not have bought the [p]roduct or would have paid less for it”; and (4) “[t]he [p]roduct is sold for a price premium compared to other similar products, approximately $80.00 per shirt, a higher price than it would otherwise be sold for, absent the misleading representations and omissions.” (Id. J 21-24) Plaintiff further alleges that she “has sensitive skin and seeks clothing which contains higher quality cotton and fabrics.” (Id. at 41) “Plaintiff sought to purchase a product

that contained the amount of Pima cotton promised on the label, and not a significant amount and/or percentage less.” (Id. §[ 42) The Amended Complaint further alleges that Ralph Lauren “did not disclose accurate and truthful fiber content tags on its Pima cotton products, or on its labeling, and upon information and belief, failed to maintain required records substantiating the fiber content of the [p]roducts at each stage of the manufacturing process.” (Id. § 44) “Plaintiff did not, nor could be expected to know, that the [p]roduct’s Pima cotton percentage differed significantly from the labeling.” (id. 45) Plaintiff further alleges that she “would not have purchased the [p]roduct if she knew the representations [about the Pima cotton content] were false and misleading.” (Id. J 46) “Plaintiff chose between [Ralph Lauren]’s [p]roduct and other similar products which were represented similarly, but which did not misrepresent their attributes and/or lower-priced products which did not make the claims made by [Ralph Lauren].” (Id. 7 47) “The [p]roduct was worth less than what Plaintiff paid and she would not have paid as much absent [Ralph Lauren]’s false and misleading statements and omissions.” (Id.

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Carter v. Ralph Lauren Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-ralph-lauren-corporation-nysd-2023.