Costa v. Reliance Vitamin Co., Inc.

District Court, N.D. California·Decided April 18, 2023·No. 3:22-cv-04679·Unknown

Opinion

TAYLOR COSTA, Case No. 3:22-cv-04679-WHO

Plaintiff, ORDER ON MOTION TO DISMISS v. AMENDED COMPLAINT

RELIANCE VITAMIN CO., INC., Re: Dkt. No. 36 Defendant.

Plaintiff Taylor Costa filed an amended complaint in this putative class action on behalf of herself and a class of California consumers, alleging that defendant Reliance Vitamin LLC misleadingly packages and sells its protein powder in containers that are unnecessarily large and contain unlawful “slack fill.” Reliance moved to dismiss the claims. For the reasons that follow, the motion is GRANTED in part and DENIED in part. The factual background in this case is outlined in detail in my prior Order on the first motion to dismiss. (“Order”) [Dkt. No. 34]. This order assumes familiarity with those facts. Where relevant in this order, I emphasize additional facts pleaded in Costa’s operative First Amended Complaint. (“FAC”) [Dkt. No. 35]. The FAC asserts seven claims under California law: (1) violation of California’s Unfair Competition Law (“UCL”), Bus. & Prof. Code §§ 17200, et seq.; (2) violation of California’s False and Misleading Advertising Laws (“FAL”), Bus. & Prof. Code §§ 17500, et seq.; (3) violation of California’s Consumers Legal Remedies Act (“CRLA”), Cal. Civ. Code §§ 1750, et seq.; (4) breach of express and implied warranty; (5) fraudulent inducement and intentional Costa brings the claims on behalf of herself and a class of California consumers. FAC ¶ 144. Reliance filed its motion to dismiss the FAC, (“Mot.”) [Dkt. No. 36], and a request for judicial notice, (“RFJN 1”) [Dkt. No. 37]. Costa filed her opposition. (“Oppo.”) [Dkt. No. 40]. Reliance filed a reply, (“Repl.”) [Dkt. No. 41], and another request for judicial notice, (“RFJN 2”) [Dkt. No. 42]. Under Civil Local Rule 7-1(b), I find this matter appropriate for resolution without oral argument and so VACATE the hearing scheduled for April 19, 2023. Under Federal Rule of Civil Procedure 12(b)(6), a district court must dismiss a complaint if it fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when the plaintiff pleads facts that “allow the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). There must be “more than a sheer possibility that a defendant has acted unlawfully.” Id. While courts do not require “heightened fact pleading of specifics,” a plaintiff must allege facts sufficient to “raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555, 570. In deciding whether the plaintiff has stated a claim upon which relief can be granted, the Court accepts the plaintiff’s allegations as true and draws all reasonable inferences in favor of the plaintiff. See Usher v. City of Los Angeles, 828 F.2d 556, 561 (9th Cir. 1987). However, the court is not required to accept as true “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008). If the court dismisses the complaint, it “should grant leave to amend even if no request to amend the pleading was made, unless it determines that the pleading could not possibly be cured by the allegation of other facts.” Lopez v. Smith, 203 F.3d 1122, 1127 (9th Cir. 2000). In making this determination, the court should consider factors such as “the presence or absence of undue delay, bad faith, dilatory motive, repeated failure to cure deficiencies by previous amendments, Package Express, 885 F.2d 531, 538 (9th Cir. 1989). I. REASONABLE CONSUMER STANDARD1 The vast majority of the parties’ briefing addresses the reasonable consumer standard under the UCL, FAL, and CRLA. Though I previously dismissed these claims for failure to meet the reasonable consumer standard, I find that with the additional and amended allegations in her FAC, Costa has now pleaded that a reasonable consumer would be deceived by Reliance’s product and packaging. Claims for violations of the UCL, FAL, and CRLA “are governed by the ‘reasonable consumer’ test,” under which a plaintiff must “show that ‘members of the public are likely to be deceived’” by the labeling and packaging. Ebner v. Fresh, Inc., 838 F.3d 958, 965 (9th Cir. 2016) (quoting Williams v. Gerber Prods. Co., 552 F.3d 934, 938 (9th Cir. 2008)). This standard requires a plaintiff to show “more than a mere possibility that [the defendant’s] label ‘might conceivably be misunderstood by some few consumers viewing it in an unreasonable manner.’” Id. (quoting Lavie v. Procter & Gamble Co., 105 Cal. App. 4th 496, 508, 129 Cal. Rptr. 2d 486, 495 (2003)). Rather, to survive a motion to dismiss a plaintiff must show “a probability ‘that a significant portion of the general consuming public or of targeted consumers, acting reasonably in the circumstances, could be misled.’” Id. (quoting Lavie, 105 Cal. App. 4th at 508). “In accordance with Ebner, many district courts have found that where the package itself discloses the actual unit counts, a ‘reasonable consumer’ could not be misled.” Kennard v. Lamb Weston Holdings, Inc., No. 18-CV-04665-YGR, 2019 WL 1586022, at *5 (N.D. Cal. Apr. 12, 2019) (collecting cases); Buso v. ACH Food Cos., Inc., 445 F. Supp. 3d 1033, 1038 (S.D. Cal. 1 Reliance’s request that I take judicial notice of the Hon. Trina L. Thompson’s decision in Sinatro v. Mrs. Gooch’s Natural Food Markets, No. 22-CV-03603-TLT, 2023 WL 2324291 (N.D. Cal. Feb. 16, 2023), is GRANTED. [Dkt. No. 37]; see Boruta v. JPMorgan Chase Bank, N.A., No. 19- cv-07257-WHO, 2020 WL 887784, at *5 n.4 (N.D. Cal. Feb. 24, 2020) (“A court may take judicial notice of undisputed matters of public record, including publicly available court records.” (citing United States v. Raygoza-Garcia, 902 F.3d 994, 1001 (9th Cir. 2018)). Reliance’s requests that I take judicial notice of the exhibits filed in Sinatro, Buso v. ACH Food Cos., Inc., 445 F. Supp. 3d 1033, 1038 (S.D. Cal. 2020), and Reider v. Immaculate Baking 2020) (collecting cases). But as I explained in detail in my prior Order, “a scoop of protein powder is inherently less comprehensible and tangible than ‘one cookie’ or ‘ten chips’ or even ‘one 8-inch square loaf of cornbread.’” Order at 12:25-27; see also Barrett v. Optimum Nutrition, No. CV 21-4398-DMG (SKX), 2022 WL 2035959, at *2-3 (C.D. Cal. Jan. 12, 2022) (contrasting labels that disclose numbers of “discrete, countable goods” and labels stating “a cannister contains 20 scoops of protein powder,” the latter of which “communicates materially less information”). As I previously noted, this case presents a slightly different factual scenario from other protein powder slack fill cases because the allegedly deceptive packaging attempts to “quantify” the powder. Cf. Barrett, 2022 WL 2035959, at *3; see also Kennard, 2019 WL 1586022, at *5-6 (distinguishing cases that do or do not “involve the disclosure of actual unit counts

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