Corn v. Target Corporation

CourtDistrict Court, N.D. Illinois
DecidedMay 11, 2023
Docket1:22-cv-04700
StatusUnknown

This text of Corn v. Target Corporation (Corn v. Target Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corn v. Target Corporation, (N.D. Ill. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

ZACHARY CORN,

Plaintiff, No. 22 CV 4700 v. Judge Lindsay C. Jenkins TARGET CORP.,

Defendant.

MEMORANDUM OPINION AND ORDER

Plaintiff Zachary Corn brings this putative class action against Defendant Target Corporation (“Target”) for alleged violations of the pre-sale availability rule of the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq. (“MMWA”), and its implementing regulations, 16 C.F.R. §§ 700.1 et seq. The MMWA confers a private right of action on consumers who are “damaged by the failure of a supplier, warrantor, or service contractor to comply with any obligation under” 15 U.S.C. §§ 2301–2312. 15 U.S.C. § 2310(d). Two motions are before the Court—Defendant’s motion to dismiss for failure to state a claim and Defendant’s motion to strike Plaintiff’s proposed class. [Dkt. No. 32] (motion to dismiss); [Dkt. No. 33] (motion to strike). In moving to dismiss, Defendant argues, among other things, that Plaintiff has not suffered “damage[s]” within the meaning of the MMWA’s private right of action and, therefore, is not entitled to sue. [Dkt. No. 32, 6–11] Defendant’s argument on that score has substantial merit, but raises the more fundamental question whether Plaintiff has Article III standing. For the reasons set forth below, the Court concludes that—on the complaint before the Court—Defendant has not met its burden to plausibly show that Plaintiff satisfies this threshold jurisdictional requirement. See Fox v. Dakkota Integrated Sys., LLC, 980 F.3d 1146, 1151 (7th Cir. 2020) (“Where, as

here, a case is removed from state court, the roles are reversed and . . . the defendant, as the proponent of federal jurisdiction, must establish the plaintiff’s Article III standing.” (emphasis original)). The Court recognizes, however, that the issue of standing was not fully fleshed out by the parties in briefing Defendant’s motions. In the interest of fairness, the Court will allow, but will not require, each party an opportunity to file supplemental

submissions addressing the jurisdictional defects identified in this opinion. Plaintiff may file his supplemental submission no later than May 25, 2023, but he is not obligated to do so, and it is ultimately Defendant’s burden to plausibly show standing given the posture of this case. Defendant may file its supplemental submission no later than June 1, 2023. In the event that any supplemental submissions fail to plausibly show standing, the Court will remand the case to the Cook County Circuit Court for further proceedings.

I. Background Because the facts alleged in Plaintiff’s complaint—and the standing issue under consideration by the Court—are best understood in light of the statutory right he seeks to assert, the Court will briefly examine the MMWA, the pre-sale availability rule promulgated by the Federal Trade Commission (“FTC”) thereunder, and the dual mechanisms Congress created to enforce it. The Court will then examine the specific allegations of Plaintiff’s complaint and the procedural history of this case. A. The Magnuson-Moss Act

The Magnuson-Moss Act was enacted “to ensure that consumers could get complete information about warranty terms and conditions.” Businessperson’s Guide to Federal Warranty Law, FED. TRADE COMM’N, https://www.ftc.gov/business- guidance/resources/businesspersons-guide-federal-warranty-law#Magnuson-Moss. “By providing consumers with a way of learning what coverage is offered on a product before they buy,” the Act was intended to encourage both comparison shopping by

consumers and competition between manufacturers on the substantive terms of product warranties. Id. In furtherance of these statutory purposes, and no doubt others, the MMWA regulates the substantive content of product warranties, 15 U.S.C. § 2302(a), and— as relevant here—requires the Federal Trade Commission to promulgate rules “requiring that the terms of any written warranty on a consumer product be made available to the consumer (or prospective consumer) prior to the sale of the product

to him.” 15 U.S.C. § 2302(b)(1)(A). This requirement gave rise to the FTC’s pre-sale availability rule, which is codified at 16 C.F.R. § 702.3 and requires any “seller” of a consumer product—defined by § 702.1(e) as “any person who sells or offers for sale for purposes other than resale or use in the ordinary course of the buyer’s business any consumer product”—to “make [the] text of [written] warrant[ies] readily available for examination by the prospective buyer” prior to sale. 16 C.F.R. § 702.3(a). A seller may comply with this requirement in one of two ways. First, it can

“[d]isplay” the warranty “in close proximity to the warranted product.” Id. at § 702.3(a)(1). Alternatively, the seller can “[f]urnish [the warranty] upon request prior to sale,” so long as it also “plac[es] signs reasonably calculated to elicit prospective buyer[s’] attention in prominent locations in the store or department advising” them of the availability of warranties on request. Id. at § 702.3(a)(2). Under either method, sellers can satisfy the rule “through electronic or other

means” if a warrantor has “provide[d] the warranty terms in an accessible digital format on the warrantor’s Internet Web site.” Id. at §§ 702.3(a)(1)–(2), 702.3(b)(2). A warrantor that publishes its warranties electronically must still “[p]rovide a hard copy of the warranty terms promptly and free of charge upon request by a consumer or seller” by phone or by mail. Id. at §§ 702.3(b)(2)(i)(B), 702.3(b)2)(ii). The MMWA creates two primary enforcement mechanisms to vindicate consumers’ interest in disclosure, one administrative and one private. Only the

private right of action is relevant to this case. The statute creates a private right of action—authorizing suits for both legal and equitable relief—available to any “consumer who is damaged by the failure of a supplier, warrantor, or service contractor to comply with any obligation” imposed under chapter 50 or under any “written warranty, implied warranty, or service contract . . . .” Id. at § 2310(d) (emphasis added). “Supplier” is defined broadly to “mean[] any person engaged in the business of making a consumer product directly or indirectly available to consumers.” Id. at § 2301(4). B. Factual Background

With this legal context in view, the Court will now examine the factual content of Plaintiff’s complaint. Because this case is before the Court on Defendant’s motion to dismiss, the Court accepts the truth of Plaintiff’s well-pleaded factual allegations. Bonte v. U.S. Bank, N.A., 624 F.3d 461, 466 (7th Cir. 2010). It does so, of course, without vouching for their ultimately veracity. This case arises out of Plaintiff’s purchase of a simplehuman trash can from

an unspecified Target store in August of 2021. [Dkt. No. 30, ¶¶ 8, 29]. Although the product was covered by a manufacturer warranty, Target made no effort to bring that fact to Plaintiff’s attention. [Id. at ¶ 8].

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Corn v. Target Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corn-v-target-corporation-ilnd-2023.