Daly v. The Wonderful Company LLC

District Court, N.D. Illinois·Decided May 7, 2025·No. 1:24-cv-01267·Unknown

Opinion

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

JOHN DALY, et al., individually ) and on behalf of all others ) similarly situated, ) ) Plaintiffs, ) ) vs. ) Case No. 24 C 1267 ) THE WONDERFUL COMPANY, LLC, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

John Daly has filed a lawsuit against The Wonderful Co. (TWC). TWC distributes and sells Fiji Water, a bottled water product. (There are other plaintiffs, but for simplicity's sake the Court will use only Daly's name.) Daly asserts claims on behalf of a putative class and subclasses of similarly situated consumers. The claims target TWC's use of the term "Natural Artesian Water" on the label of Fiji Water bottles. Daly contends that the use of the term "natural" is deceptive because the water contains microplastics. Daly asserts claims under various state consumer protection statutes and for common law fraud and unjust enrichment. Daly filed this lawsuit in Illinois state court in January 2024. TWC removed the case to federal court under the Class Action Fairness Act and then moved to dismiss for failure to state a claim. TWC's motion to dismiss, filed in March 2024, argued that Daly had not adequately alleged the elements of his claims and also that the claims were preempted by the federal Food, Drug, and Cosmetic Act and were subject to a statutory "safe harbor" under the Illinois Consumer Fraud and Deceptive Business Practices Act. The motion to dismiss was fully briefed as of about mid-May 2024. In late July 2024, before issuance of a ruling on the motion to dismiss, Daly sought and obtained leave to file an amended complaint. The amended complaint, filed on July 31, 2024, included

additional plaintiffs and claims under additional state laws. And, of course, Daly had had TWC's motion to dismiss briefing for over two months at that point and thus knew, and could address, the parts of the original complaint TWC had argued were insufficiently pleaded. TWC moved to dismiss Daly's amended complaint, making arguments similar to those it had made on the first go-round. On March 3, 2025, the Court issued a decision granting TWC's motion to dismiss. See Daly v. The Wonderful Co., No. 24 C 1267, 2005 WL 672913 (N.D. Ill. Mar. 3, 2025). The Court overruled TWC's preemption argument but dismissed all of Daly's claims for failure to state a claim.1 The Court's ruling turned on the sufficiency of Daly's allegations that Fiji Water is contaminated with

microplastics. Here are excerpts from the Court's discussion of these points. Plaintiffs allege that the water in these bottles contains microplastics. The Environmental Protection Administration defines microplastics as small particles of plastic ranging from 5 millimeters to 1 nanometer in size. Plaintiffs contend that microplastics from plastic bottles can contaminate the water held in the bottles and, as a result, expose consumers to these substances, leading to harmful health effects.

Plaintiffs allege generally that the water they purchased contained microplastics. To support this, plaintiffs point to two studies. First, a 2018 study at the State University of New York Mason Lab concluded that 93 percent of bottled water among eleven brands—not including Fiji Water—showed signs of microplastic contamination in varying degrees. Second, plaintiffs cite a study from 2019, which found that a reason for microplastic contamination in bottled water was mechanical stress on the cap and bottleneck from repeated opening

1 The Court also dismissed Daly's request for injunctive relief for lack of standing. and closing. Plaintiffs also cite to research studies finding that microplastics have toxic effects in marine invertebrates.

Id. at *1.

Plaintiffs contend that bottled Fiji Water is contaminated with microplastics and therefore contains "filthy substances." Am Compl. ¶ 31. They further allege that plaintiffs and other reasonable consumers would not expect that bottled water labeled "natural" would contain microplastics and that this fraudulent labeling "impaired Plaintiff[s'] ability to choose the type and quality of products" they purchase. Am Compl. ¶¶ 35, 36, 46.

TWC . . . argues that plaintiffs have failed to state a claim upon which relief may be granted because they do not allege that they tested Fiji Water bottles and found microplastic contamination at levels sufficient to be "adulterated" under the FDCA and because they do not meet the standards for liability under state consumer protection statutes or for common law fraud.

Id. at *2.

TWC argues that plaintiffs' claims are deficient because they do not plausibly allege that . . . Fiji Water actually contains microplastics . . . .

Plaintiffs have brought claims under five state consumer protection statutes. Each of these statutes "require[s] plaintiffs to prove that the relevant labels are likely to deceive reasonable consumers." Beardsall v. CVS Pharmacy, Inc., 953 F.3d 969, 972 (7th Cir. 2020). Deception—or, more specifically, making a false statement with the intent to induce reliance—is also an element of plaintiffs' common law fraud claim. See generally Tricontinental Indus., Ltd. v. PricewaterhouseCoopers, LLP, 475 F.3d 824, 833–34 (7th Cir. 2007) (listing the elements of a fraud claim). And plaintiffs' unjust enrichment claim is expressly premised on the allegation that TWC made false statements about Fiji Water. See Am. Compl. ¶ 84. In this case, the alleged deception concerns calling Fiji Water "natural" artesian water even though it contains microplastics.

TWC argues that "Plaintiffs do not allege anywhere in the [first amended complaint] that any Product was actually: (1) tested for microplastics, (2) determined to contain any 'filthy substances' of 'polypropylene, polyethylene, polystyrene, or other synthetic polymers' . . .; or (3) found to have concentrations of 'filthy substances' that would be harmful to human health in violation of FDCA regulations." Mem. in Support of Mot. to Dismiss at 6. For these reasons, TWC argues, plaintiffs do not plausibly allege that Fiji Water actually contains microplastics and thus do not plausibly allege that TWC made deceptive or fraudulent representations.

. . . The question in this case is whether plaintiffs' allegation that the Fiji Water they purchased contained microplastics is a "well-pleaded" factual allegation.

It is unclear whether it is reasonable to expect the plaintiffs to have tested the specific items they purchased; those were likely consumed. But under the circumstances, plaintiffs' bare and (in the Court's view) unsupported allegation that Fiji Water contains microplastics is insufficient to "nudge[] their claims across the line from conceivable to plausible." Bell Atl. Corp., 550 U.S. at 570. It would perhaps be sufficient if plaintiffs had cited to relatively contemporaneous tests of other bottles of Fiji Water (whether opened or unopened), but that is not what they have done. Rather, their only reference to testing involves other brands of water, not Fiji Water. Plaintiffs also cite a study regarding a proposed mechanism for how microplastic contamination of bottled water occurs—from twisting the lid open and shut—but this study, as least as plaintiffs characterize it in their complaint, is less than definitive, and plaintiffs do not allege that Fiji Water bottles were tested in that study either.

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Daly v. The Wonderful Company LLC, (N.D. Ill. 2025).

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