Dyson, Inc. v. Sharkninja Operating LLC

259 F. Supp. 3d 816
CourtDistrict Court, N.D. Illinois
DecidedApril 26, 2017
DocketCase No. 14 C 9442
StatusPublished
Cited by5 cases

This text of 259 F. Supp. 3d 816 (Dyson, Inc. v. Sharkninja Operating LLC) 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
Dyson, Inc. v. Sharkninja Operating LLC, 259 F. Supp. 3d 816 (N.D. Ill. 2017).

Opinion

MEMORANDUM OPINION AND ORDER

Joan B. Gottschall, United States District Judge

The Lanham Act does not protect sellers from competition from better or cheaper products, but it does protect sellers “from having their customers lured away from them by deceptive ads.” Schering-Plough Healthcare Prod., Inc. v. Schwarz Pharma, Inc., 586 F.3d 500, 512 (7th Cir. 2009). Believing it was losing too many customers to- the allegedly false :and misleading claims of its competitor, plaintiff Dyson, Inc. filed this suit against defendants Sharkninja Operating LLC and Sharkninja Sales Company (together “Shark”).1 The parties have filed cross-motions for summary judgment. For the reasons set forth below, the court grants in part and denies in part plaintiffs motion for summary judgment. The court grants defendants’ motion for partial summary judgment.

I. BACKGROUND

For purposes of these cross-motions for summary judgment, the following facts are undisputed unless otherwise noted.2

Plaintiff Dyson, like Shark, designs and sells vacuum cleaners, and the two compete against each other. Dyson’s vacuums were quite lucrative until Shark’s vacuums hit the market. In the three months beginning September 2014 (when, as we shall see,. Shark began running an infomercial for its competing vacuum), Dyson’s margin on its DC65 vacuum fell from $300. per vacuum to less than $100 per vacuum.

Dyson had launched its lucrative DC65 vacuum in the United States in January 2014. About six months later, on or about July 8, 2014, Shark began offering for sale [820]*820on its website its NV650-series vacuums, which it also referred to as “Rotator Powered Lift-Away” vacuums. The packaging on the NV650 made direct claims against Dyson’s DC65. Specifically, the NV650 packaging stated, among other things, “CLEANS CARPETS BETTER VS. Dyson’s Best Vacuum Proven by Independent Lab Testing. **Based on ASTM F608 in Turbo/Carpet Mode vs. Dyson DC65.”

Shark also made claims about its vacuum on its website at some point. The parties have not included in their statements of facts any evidence as to when the advertisements commenced,3 but at some point until January 8, 2016, Sjhark’s website had the following to say about its NV650 vacuum:

Cleans Carpets Better ** Compared to Dyson’s Best Vacuum! **Based on the ASTM F608 in Carpet/Low Pile Mode vs. Dyson DC65.

In Séptember 2014, Shark began advertising its NV650 Powered Lift-Away vacuum on a 30-minute infomercial. During the infomercial, Shark’s CEO says, “In fact, my new Rotator Powered Lift-Away has more suction and deep cleans carpets better than Dyson's best vacuum.” While the CEO says the quoted words, the screen reads, “Shark NV650 v. Dyson DC65 based on ASTM F558 measured at the hose and ASTM F608 embedded dirt.” The CEO added, “I have the independent lab tests to back it up. We asked independent testing facilities to conduct the one and only industry-recognized test of carpet cleaning,, and we went head to head with Dyson’s best. Both vacuums were tested on four of the most commonly owned carpet types in America, And when all was said and done, the independent lab tests proved without question that our new Shark Rotator Powered Lift-Away deep cleans carpets better than Dyson’s best $600 vacuum.” At the time, the screen read, “Independent LAB TESTS PROVE ... Dramatization footage of ASTM F608 embedded dirt (NV650 in carpet/low pile mode) Shark NV650 vs. Dyson DC65.”

On or about. October 27, 2014, Shark began airing a revised infomercial. In this one, when Shark’s CEO says, “In, fact, my new Rotator Powered Lift-Away has more suction and deep cleans carpets better than Dyson’s best vacuum,” the screen says “SHARK DEEP CLEANS CARPETS BETTER THAN DYSON’S. BEST VACUUM DC65” and “Shark NV650 v. Dyson DC65 based on ÁSTM F558 measured at the hose & ASTM F608 embedded dirt (NV650 in carpet/low pile mode).” In August 2015, Shark removed these statements from the infomercials.

In addition to the infomercials, Shark ran print advertisements. On November 17, 2014, Shark ran an advertisement in People Magazine that claimed Shark’s Ro-tator Powered Lift-Away vacuum provides “MORE Suction Power & Cleaner Carpets** vs. Dyson’s Best Vacuum (Proven by Independent lab testing!) **Based on NV650 vs. Dyson DC65: ASTM F608 (embedded dirt in carpet).”

Shark also ran short commercials. At some point (the parties do not say when), Shark ran a 15-second commercial that said, “Independent lab tests prove that Shark’s pew Powered Lift-Away deep cleans carpets better than a $600 Dyson.” The print on the screen stated, “Based on ASTM F608 in cgrpet/low pile mode vs. Dyson DC65.” In a 30-second commercial (the parties do not say when it' aired), Shark’s voiceover stated that the Powered [821]*821Lift-Away vacuum “Cleans carpets better than a $600 Dyson” while the screen stated “Shark NV650 vs. Dyson DC65 based on ASTM F558 measured at the hose & ASTM F608 embedded dirt (NV650 in carpet/low pile mode).”

ASTM F608

The advertising Dyson challenges in this case references independent testing, specifically testing under ASTM F608. ASTM is an organization that sets standards for product tésting. ASTM F608 is (according to its own label) the “Standard Test Method for Evaluation of Carpet Embedded Dirt Removal Effectiveness of Household/Commercial Vacuum Cleaners.” The parties recognize ASTM F608 as essentially the gold standard for testing the ability of vacuums to. remove embedded dirt from carpet. The following portions of the 20-paged, single spaced ASTM F608 are relevant to the parties’ arguments:

4. Significance and Use

4.1 This test method provides an indication of the capability of the vacuum cleaner to remove embedded dirt from carpeting. This test method is based upon results of home cleaning tests so that, in most cases a reasonable correlation exists between home and laboratory results. The amount of dirt picked up in the laboratory test may not be the game as in the home; however, it will show that, in most cases, a vacuum cleaner that performs well in the laboratory will perform well in a home. Laboratory results may differ due to variations in the homes, carpets, dirt, and other factors
[[Image here]]
⅜ $ ⅜
7. Sampling
7.1 A minimum of three units of-the same model vacuum cleaner selected at random in accordance with good statistical practice shall constitute the population sample.
7.1.1 To determine the best estimate of cleaning ability effectiveness for. the population of the vacuum cleaner model being tested, the-arithmetic mean of the cleaning ability rating of the sample from the population shall be established by testing it to a -90% confidence level -within ±5% of the mean value of the cleaning ability rating.
7.1.2'. Annex A3- provides a procedural example for determining the 90% confidence level and when the sample size shall be increased.
⅜ ⅝ -sH
9.2.2 Used Test Vacuum Cleaners:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
259 F. Supp. 3d 816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyson-inc-v-sharkninja-operating-llc-ilnd-2017.