Freeman v. MAM USA Corporation

CourtDistrict Court, N.D. Illinois
DecidedMarch 23, 2021
Docket1:20-cv-01834
StatusUnknown

This text of Freeman v. MAM USA Corporation (Freeman v. MAM USA 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
Freeman v. MAM USA Corporation, (N.D. Ill. 2021).

Opinion

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

) DOMINIQUE FREEMAN, individually ) And on behalf of all other similarly situated, ) ) Plaintiffs, ) No. 1:20-cv-01834 ) v. ) ) Judge Edmond E. Chang MAM USA CORPORATION, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER In an effort to do what parents do—provide comfort and care to their children— Dominique Freeman bought “orthodontic” pacifiers made by child-products company MAM USA. R. 1, Compl. ¶¶ 17–19.1 Based on MAM’s representations, Freeman be- lieved that the pacifiers would benefit her son’s dental and oral health. Id. ¶¶ 17, 20. Recently, however, Freeman learned that many studies allegedly show that extended pacifier use, including “orthodontic” pacifier use, is harmful to children’s health. Id. ¶¶ 37–79. She brought this proposed class action against MAM, alleging that MAM’s false advertising of its orthodontic pacifiers—especially for children over 24 months of age—violates the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/1, et seq., the Illinois Uniform Deceptive Trade Practices Act, 815 ILCS

1Citations to the docket are denoted as “R.” followed by the docket entry number. 510/1, et seq., and many other states’ consumer protection laws. She also brings claims for breach of warranty and unjust enrichment.2 MAM now moves to dismiss the claims under Federal Rules of Civil Procedure

12(b)(1) and 12(b)(6). R. 21, Defendant’s Motion to Dismiss (Def.’s Mot.). MAM argues that Freeman lacks standing to sue for injunctive relief, and that she has failed to allege the fraud necessary to state a claim. As explained in this Opinion, the Court agrees that Freeman lacks standing to sue for injunctive relief. Aside from that prob- lem with injunctive relief, however, Freeman has adequately pled the elements of each of her claims, even under the heightened-pleading standard demanded by Civil Rule 9(b). MAM’s challenges are largely fact-based and premature.

MAM also argues that Freeman cannot bring claims on behalf of out-of-state class members. MAM frames this as a standing argument, though it is really a chal- lenge to the Court’s personal jurisdiction over out-of-state plaintiffs (which means it is really a dismissal motion under Civil Rule 12(b)(2)). As detailed in the Opinion, the Court concludes that it may exercise jurisdiction over out-of-state class members in this proposed nationwide class action. It is true that Freeman’s eventual class-

2This Court has subject matter jurisdiction over this case under the Class Action Fair- ness Act, 28 U.S.C. § 1332(d)(2), which grants federal jurisdiction over class actions in which any member of the proposed class is a citizen of a different state than the defendant and the matter in controversy exceeds $5,000,000. MAM is a citizen of Delaware, where it is incorpo- rated, as well as New York, home to its corporate headquarters. Compl. ¶ 21. Freeman is a citizen of Illinois. Compl. ¶ 16. The amount in controversy could exceed $5,000,000, given the likely large size of the class and the pacifier buying habits alleged in the Complaint. Freeman purchased a two-pack of pacifiers, for $8.99, “every few weeks or months” for at least two years. Compl. ¶¶ 17–18. Extrapolating these spending habits to a large class, it is legally possible that the amount in controversy could exceed $5,000,000. certification motion will require close scrutiny, but that is a different problem that does not bear on personal jurisdiction. I. Background

In evaluating this motion to dismiss, the Court accepts as true the complaint’s factual allegations and draws reasonable inferences in Freeman’s favor. Ashcroft v. Al–Kidd, 563 U.S. 731, 734 (2011). MAM USA manufactures, distributes, and sells several different styles and colors of pacifiers, all of which are labeled “orthodontic” and purport to have an “orthodontic” nipple. Compl. ¶¶ 23–24. MAM sells its products online and through brick-and-mortar retailers such as Wal-Mart and Target. Id. ¶ 23. MAM pacifiers are labeled for different age groups, the last of which is “16+ months”

with no upper age limit given. Id. ¶ 27. MAM’s packaging and advertising emphasize the “orthodontic” nature of its products and extol the following benefits:  “Specially sized for toddlers”  “Orthodontic nipple promotes proper oral development”  “Nipple adapts to baby’s mouth”  “Largest nipple to ensure maximum comfort and proper oral develop- ment as baby grows”  “16+ nipple ensures proper development of baby’s palate, teeth and gums as baby grows”  “Symmetrical nipple ideal for baby’s jaw development.” Id. ¶¶ 28–29. On its website, MAM also says it “collaborates with medical experts … to help develop and design innovative, orthodontic soothers [pacifiers] that suit baby’s various developmental stages.” Id. ¶ 30. Against the backdrop of that advertising, Freeman alleges that, in September 2019—and many other times over the previous two years—she bought a two-pack of MAM orthodontic pacifiers. Compl. ¶¶ 16–18. She paid about $8.99 for the pacifiers.

Id. ¶ 17. Freeman’s son was about 23 months old at the time, so she bought the paci- fiers labeled for children ages “16+,” intending to let him use them beyond the age of 24 months. Id. She had been buying MAM orthodontic pacifiers regularly for her son since birth. Id. ¶ 18. Freeman now asserts that MAM’s pacifiers in fact do not promote proper oral development or provide any other benefit to children. Compl. ¶¶ 17–20, 26, 35–79. She cites numerous studies allegedly showing that orthodontic pacifiers are no better

than conventional pacifiers; extended use of any pacifier can harm children’s orofacial development; and pacifier use past the age of 24 months is particularly harmful. Id. ¶¶ 35–79. According to Freeman, MAM knew of the risks that the pacifiers pose to children but failed to disclose those risks to her and other consumers. Id. ¶ 33. She also alleges that she paid a premium price for MAM pacifiers because of their pur- ported orthodontic benefits. Id. ¶¶ 8, 86. If Freeman had known that these benefits

did not exist, she says, then she would either not have bought MAM pacifiers or would not have paid a premium for them. Id. ¶¶ 86–87. As a result, Freeman filed this lawsuit against MAM, claiming that its pacifier advertisements are fraudulent, misleading, and deceptive in violation of the Illinois Consumer Fraud and Deceptive Businesses Act (the Fraud Act), 815 ILCS 505/1, et seq., the Illinois Uniform Deceptive Trade Practices Act (IDTPA), 815 ILCS 510/1, et seq., and the consumer-protection laws of 30 other States. Compl. ¶¶ 110–146. She also brings claims for breach of warranty and unjust enrichment. Id. ¶¶ 147–162. Along with the claims on her own behalf, Freeman also seeks certification of nation-

wide, multi-state, and Illinois subclasses. Id. ¶¶ 95–103. In seeking dismissal of the Complaint, MAM’s arguments present issues of standing, personal jurisdiction, and the adequacy of the pleading. Before evaluating the merits of each argument, the Court sets forth the governing standards of review. II. Standards of Review A. Standing / Rule 12(b)(1) “Standing is an essential component of Article III’s case-or-controversy re-

quirement.” Apex Digital, Inc. v. Sears, Roebuck & Co., 572 F.3d 440, 443 (7th Cir. 2009).

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Freeman v. MAM USA Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-v-mam-usa-corporation-ilnd-2021.