Crozier v. Johnson & Johnson Consumer Companies, Inc.

901 F. Supp. 2d 494, 2012 WL 4507381
CourtDistrict Court, D. New Jersey
DecidedSeptember 28, 2012
DocketCivil Action Nos. 12-0008 (JBS/KMW), 12-0010 (JBS/KMW)
StatusPublished
Cited by41 cases

This text of 901 F. Supp. 2d 494 (Crozier v. Johnson & Johnson Consumer Companies, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crozier v. Johnson & Johnson Consumer Companies, Inc., 901 F. Supp. 2d 494, 2012 WL 4507381 (D.N.J. 2012).

Opinion

OPINION

SIMANDLE, Chief Judge.

I. INTRODUCTION

Plaintiffs Bridget Crozier and Marguerite McNamee have brought these putative class actions alleging that Defendant Johnson & Johnson Consumer Companies Inc. has violated the New Jersey Consumer Fraud Act, N.J.S.A. § 56:8-1, et seq, as well as the implied warranties of merchantability under N.J.S.A. § 12A:2-314, and of fitness under N.J. Stat. Ann. § 12A:2-314, in connection with the sale of Neosporin NEO TO GO! first aid antiseptic/pain relieving spray.

This matter comes before the Court on Defendant’s Motions to Dismiss [Civ. No. 12-0008, Docket Item 4; Civ. No. 12-0010, Docket Item 4]1 Plaintiffs’ New Jersey Consumer Fraud Act (“NJCFA”) and breach-of-warranty claims. The Court finds that federal law preempts any claims relating to the spray’s label. In terms of the spray’s advertising, the Court finds that Plaintiffs failed to state plausible claims for relief. The Motion to Dismiss will be granted. The NJCFA claims will be dismissed without prejudice, and the breach-of-warranty claims will be dismissed with prejudice.

II. BACKGROUND

The procedural history of the two cases, the factual and legal allegations contained in Plaintiffs’ Complaints, and the arguments in Defendant’s Motions to Dismiss are now discussed.

A. Procedural History

Plaintiffs Bridget Crozier and Marguerite McNamee both filed lawsuits against Johnson & Johnson Consumer Companies Inc. (“J & J”)2 in New Jersey Superior Court, Camden County Law Division. The Complaints in both cases were virtually identical. Defendant removed both cases to this Court. The Court has jurisdiction over these actions pursuant to the Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1332(d), because they are putative class actions having at least minimal diversity of citizenship, an aggregate amount in controversy in excess of $5,000,000, and 100 or more class members. The two cases were consolidated for pre-trial purposes. [Docket Item 16.] Defendant has filed identical Motions to Dismiss in both cases. This Opinion addresses both motions.

B. Factual Background

Plaintiff Bridget Crozier filed a lawsuit individually and on behalf of other similarly situated individuals in New Jersey who purchased Neosporin NEO TO GO! first [497]*497aid antiseptic spray since the product was introduced “in or around 2008.” [Docket Item 1, Ex. A.]; (Compl. ¶ 6). Plaintiff Marguerite McNamee filed an identical Complaint. [Civ. No. 12-0010, Docket Item 1, Ex. A.]

Defendant J & J produces over-the-counter medications, including Neosporin antibiotic ointments and NEO TO GO antiseptic spray. (Compl. ¶ 2.) Neosporin antibiotic ointment’s intended use is “the prevention of infection and pain relief at the sites of scratches, cuts and other minor wounds.” (Id. ¶ 29.) It contains three antibiotics as active ingredients. (Id. ¶ 30.) J & J also produces Maximum Strength Neosporin, which contains the same three antibiotics and also a pain reliever. (Id. ¶ 31.) Both Neosporin antibiotic ointment and Maximum Strength Neosporin are “sold in boxes that, in an attempt to capitalize on the product’s established goodwill and reputation, prominently display the Neosporin Signature Gold Mark and Neosporin Trade Dress.” (Id. ¶ 32.) J & J also makes Neosporin NEO TO GO! Single Use Packets, which are “single use packets which each contain a single dose of original Neosporin antibiotic ointment.” (Id. ¶ 34.)

In addition to these antibiotic ointments, J & J produces Neosporin NEO TO GO! spray, which is the subject of this action. The spray “uses Benzalkanium Chloride as the active First Aid Antispetie,” and its label identifies this active antiseptic ingredient. (Compl. ¶ 43.) It is sold in 7.7 ml (0.26 oz) spray bottles and “is specifically designed to fit anywhere to give you infection protection anytime, anywhere.” (Id. ¶ 35.)

The antiseptic spray does not contain antibiotics, but Plaintiffs allege that the spray “is manufactured, marketed, advertised, and distributed in a manner that intentionally, recklessly, and/or negligently confuses and misleads consumers, including Plaintiffs], into believing that they have purchased a product that contains antibiotics.” (Id. ¶ 36.) The spray is allegedly marketed and labeled with the same green and yellow color scheme, Signature Gold Mark, trade dress, and goodwill and reputation that are associated with Neosporin, Neosporin Maximum Strength, and NEO TO GO! Single Use Packets, all of which contain antibiotics. (Id. ¶ 37.)

The Neosporin family of products also includes nonantibiotic products, such as Lip Treatment, Athlete’s Foot Cream, Athlete’s Foot Spray Powder, Athlete’s Foot Spray Liquid, and Jock Itch Cream. (Id. ¶ 39.) These non-antibiotic products are not marketed with the “Neosporin Signature Gold Mark or the Neosporin Trade Dress and therefore do not capitalize on the goodwill and antibiotic reputation associated with each of them.” (Id. ¶ 40.)

Plaintiffs also allege that the spray is “significantly and exponentially more expensive ... for a much smaller volume” than other brand name topical antiseptic products. (Id. ¶ 42.) The spray, which contains 7.7 milliliters, costs $4.00 to $7.00. (Id. ¶ 42.) A 16-ounce bottle of a common antiseptic typically sells for less than one dollar. (Id. ¶ 42.) Plaintiffs state that “[t]he extraordinary and unreasonable price differential between the subject spray and common antiseptic products can only be explained by the fact that Johnson & Johnson has intentionally, recklessly, and/or negligently misled consumers into believing that the subject spray contains antibiotic ingredients.” (Id. ¶ 44.) Plaintiffs allege that consumers believe that “they are paying a higher price for the extra infection prevention that is provided by an antibiotic, when in fact the spray contains no antibiotics whatsoever.” (Id. ¶ 44.)

[498]*498Plaintiffs allege two counts. Count I alleges that J & J has violated the New Jersey Consumer Fraud Act (“NJCFA”). Plaintiffs allege that Defendant’s actions constitute “unconscionable commercial practices, misrepresentations, concealment, suppression, or omission of material facts with the intent that Plaintiffs] and members of the proposed class would rely on such concealment, suppression, or omission.” (Id. ¶ 47.) Plaintiffs allegedly suffered “a measurable and easily-calculable economic loss between the value of an antiseptic and the cost of the subject spray.” (Id. ¶ 49.)

Count II alleges that J & J breached implied warranties of merchantability and fitness for a particular purpose. Plaintiffs relied on J & J’s “representations about the character, quality, and/or recommended uses of NEO TO GO! spray,” (Id. ¶ 54), and J & J’s “misleading marketing and advertising” breached implied warranties, (Id. ¶ 55). Plaintiff also alleges that “[t]hese breaches of warranties were substantial factors in inducing Plaintiffs] and other New Jersey residents to purchase NEO TO GO! spray, and falsely indicated that the spray would provide infection protection in a manner similar to Johnson & Johnson’s product lines.” (Id.

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901 F. Supp. 2d 494, 2012 WL 4507381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crozier-v-johnson-johnson-consumer-companies-inc-njd-2012.