Cheslow v. Ghirardelli Chocolate Company

District Court, N.D. California·Decided April 8, 2020·No. 4:19-cv-07467·Unknown

Opinion

LINDA CHESLOW, et al., Case No. 19-cv-07467-PJH Plaintiffs,

v. ORDER GRANTING MOTION TO DISMISS COMPANY, Re: Dkt. No. 14 Defendant.

Defendant Ghirardelli Chocolate Co.’s (“Ghirardelli” or “defendant”) motion to dismiss came on for hearing before this court on March 11, 2020. Plaintiffs Linda Cheslow and Steven Prescott (“plaintiffs”) appeared through their counsel, Matthew Theriault. Defendant appeared through its counsel, Dale Giali. Having read the papers filed by the parties and carefully considered their arguments and relevant authority, and good cause appearing, the court hereby GRANTS defendant’s motion for the following reasons. On September 19, 2019, plaintiffs filed a complaint in Sonoma County Superior Court, which defendant removed to federal court on November 13, 2019. Dkt. 1. The complaint (“Compl.”) asserts three causes of action: (1) violation of California Unfair Competition Law Business & Professions Code § 17200 et seq.; (2) False and Misleading Advertising in violation of Business & Professions Code § 17500 et seq.; and (3) violation of California Consumer Legal Remedies Act, Civil Code § 1750 et seq. Dkt. 1-1. 1 Baking Chips Classic White Chips” (the “product”) in the United States or, alternatively, in 2 California. 3 Plaintiffs allege that they purchased the product under the impression that the 4 product contained white chocolate, but, in fact, it does not contain any chocolate. Compl. 5 9 4, 26-27. The complaint alleges that Ghirardelli previously marketed a similar version 6 of the product that contained real white chocolate baking chips and then “covertly” 7 swapped out the real white chocolate for fake white chocolate. Id. 45. The current 8 version of the product’s packaging as well as Ghirardelli’s official website advertise the 9 product as “Classic White Chips” and “Premium Baking Chips.” A depiction of the product’s packaging is as follows:

‘ ‘aS i ie a ae 2 ee » en i ed — Natal 4 □ 0 , BAK ™N HH ra P Mi ~ he ae

2" | 3s md ig rm P ioe \ _ et a mh.

“= 5 insce vee Coke fom a: Ia rere ea at en i edients to create a rich bers ssi 2 wt i ‘aaa =) Prebent oven to 350° F Crean buthéy and sc Ad vanilla ane eg sn el 3 ——- □□ ee aieiay = «cot comm piety on wire rach, 4 mT TZ MA GHIRARDEL

ae Facts | a ore 6 =. ae la od Fd ee RS es am = i cme a □ uw 7 aa a i 8 a 9 10 Dkt. 14-2. Plaintiffs allege that reasonable consumers do not consider the word 11 “premium” to include “inferior” ingredients such as hydrogenated and palm oils. Compl. 12 § 7. According to plaintiffs, the reference to “white” in “Classic White” deceives

13 reasonable consumers into thinking “white” represents the type of chocolate in the © 14 product, i.e., white chocolate. Id. ] 8. That is because defendant manufactures other Oo 15 products denoted by type of chocolate; these include: “milk chocolate,” “bittersweet

16 chocolate,” and “semi-sweet chocolate.” Id. Cc 17 Plaintiffs allege that consumers reasonably and detrimentally rely on Ghirardelli’s 18 representations of the product as real chocolate in making their purchasing decisions. Id. 19 7.9. Plaintiffs allege that consumers have complained about the product on numerous 20 consumer protection and retailer websites. For example, one consumer wrote: 21 Because of Ghirardelli's reputation, | didn’t look at the ingredient list when | purchased the white chips; this was a big 22 mistake. There is no cocoa butter in them, and | was disgusted by the end product. | wasted over $50 and hours of my time 23 using this in a product that | was giving as a holiday gift. D4 Needless to say, | threw the end product away. 25 Id. 9 11. The complaint includes other, similar consumer statements. See id. J 14. 26 The federal Food and Drug Administration (“FDA”) has issued regulations defining 27 “white chocolate” as follows: 28 (1) White chocolate is the solid or semi plastic food prepared

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