Kellman v. Whole Foods Mkt., Inc.
This text of 313 F. Supp. 3d 1031 (Kellman v. Whole Foods Mkt., Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
LAUREL BEELER, United States Magistrate Judge
INTRODUCTION
Shosha Kellman, a California resident, and Abigail Starr, a New York resident, are suing four corporate entities associated with the Whole Foods supermarket chain. The plaintiffs allege that Whole Foods has been mislabeling certain household and body-care products that it sells as "hypoallergenic" despite the fact that they actually contain known allergens.
The plaintiffs bring this suit as a class action under Federal Rule of Civil Procedure 23 on behalf of themselves and other consumers who bought these "hypoallergenic"-labeled products. They define three classes: a nationwide class, a California *1037class, and a New York class. The plaintiffs' operative Second Amended Complaint ("SAC") asserts claims for (1) breach of express warranty, (2) unjust enrichment, (3) unfair and deceptive acts and practices in violation of California's Consumers Legal Remedies Act ("CLRA"),
The defendants move to dismiss under Federal Rules of Civil Procedure 12(b)(1), 12(b)(2), and 12(b)(6). First, the defendants argue that the court does not have personal jurisdiction over the non-Californian defendants WFMI, WFM Services, and WFM Group, or over Ms. Starr's non-Californian claims, and that the court should dismiss these defendants and claims under Rule 12(b)(2). Second, the defendants argue that the plaintiffs have not alleged plausible claims for false or misleading advertising or for breach of express warranty and that the court should dismiss these claims under Rule 12(b)(6). Third, the defendants argue that the plaintiffs do not have standing to pursue claims for any products other than the ones that the plaintiffs themselves purchased and that the court should dismiss these claims under Rule 12(b)(1). The defendants also move to strike allegations about products that the plaintiffs themselves did not purchase and product representations that the plaintiffs themselves did not see or rely on from the SAC under Rule 12(f).
The court finds this matter suitable for determination without oral argument. N.D. Cal. Civil L.R. 7-1(b). The court grants the defendants' motion in part and (1) dismisses WFMI, WFM Services, and WFM Group for lack of personal jurisdiction, (2) dismisses Ms. Starr's claims for failure to state a claim against WFM California, and (3) dismisses the plaintiffs' claims for products for which they identify no ingredients (and therefore identify no allergens) for lack of standing. In all other respects, the court denies the defendants' motion to dismiss. The court denies the defendants' motion to strike. The court grants the plaintiffs leave to file an amended complaint within 14 days of the date of this order.
STATEMENT1
1. Allergens and Skin Sensitizers
According to the Centers for Disease Control and Prevention ("CDC"), 8.8 million children (12% of U.S. children) reported skin allergies in 2012.2 Skin allergies are even more prevalent among young *1038children: the CDC reports that 14.2% of children between the ages of 0 and 4 suffered a skin allergy in 2012.3 These numbers may underreport the prevalence of allergic-contact dermatitis : recent studies show that somewhere between 14-70% of children suffer from skin allergies, based on positive patch skin tests.4 Skin allergies are similarly prevalent among adults.5
When skin is exposed to a sufficient amount of a chemical allergen, the skin is "sensitized."6 Upon re-exposure to the allergen, the skin initiates an inflammatory cascade, causing skin changes associated with allergic-contact dermatitis.7 These include redness, edema (fluid retention ), scaling, fissures (cracking), vesicles (fluid-filled sacs), bullae (bubble-like cavities), and eventually oozing.8 Contact sensitization and related skin allergies can severely affect a person's quality of life, depending on the severity and the site of skin sensitization.9 People suffering from noticeable skin allergies will try to hide the symptoms under clothing if possible, and if not, will avoid public spaces entirely.10 In either case, skin allergies can dramatically affect a person's confidence and engagement in life.11
It is difficult to identify the substance causing an allergic response.12 Allergic-contact dermatitis develops several days after exposure to a skin allergen.13 Some substances do not cause symptoms until a week after exposure.14 Additionally, once an individual is sensitized to an allergen, future contact with the allergen can trigger a response in the original site of sensitization.15 For example, if someone had an allergic response to a product used on the face, and later used a different product containing the same allergen on the legs, the allergic response will occur again on the face-even if the face was never exposed to the second product.16 When a consumer cannot identify the material that triggers an allergic reaction, allergic-contact dermatitis will persist, and, it is believed, will take longer to resolve even after the cause is identified.17 Once skin is sensitized, even a minute amount of the chemical allergen is enough to cause a full-blown allergic response.18
The scientific and regulatory definition of a "skin sensitizer" is a substance that causes sensitization by skin contact in a substantial number of persons based on human evidence or appropriate animal testing.19
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LAUREL BEELER, United States Magistrate Judge
INTRODUCTION
Shosha Kellman, a California resident, and Abigail Starr, a New York resident, are suing four corporate entities associated with the Whole Foods supermarket chain. The plaintiffs allege that Whole Foods has been mislabeling certain household and body-care products that it sells as "hypoallergenic" despite the fact that they actually contain known allergens.
The plaintiffs bring this suit as a class action under Federal Rule of Civil Procedure 23 on behalf of themselves and other consumers who bought these "hypoallergenic"-labeled products. They define three classes: a nationwide class, a California *1037class, and a New York class. The plaintiffs' operative Second Amended Complaint ("SAC") asserts claims for (1) breach of express warranty, (2) unjust enrichment, (3) unfair and deceptive acts and practices in violation of California's Consumers Legal Remedies Act ("CLRA"),
The defendants move to dismiss under Federal Rules of Civil Procedure 12(b)(1), 12(b)(2), and 12(b)(6). First, the defendants argue that the court does not have personal jurisdiction over the non-Californian defendants WFMI, WFM Services, and WFM Group, or over Ms. Starr's non-Californian claims, and that the court should dismiss these defendants and claims under Rule 12(b)(2). Second, the defendants argue that the plaintiffs have not alleged plausible claims for false or misleading advertising or for breach of express warranty and that the court should dismiss these claims under Rule 12(b)(6). Third, the defendants argue that the plaintiffs do not have standing to pursue claims for any products other than the ones that the plaintiffs themselves purchased and that the court should dismiss these claims under Rule 12(b)(1). The defendants also move to strike allegations about products that the plaintiffs themselves did not purchase and product representations that the plaintiffs themselves did not see or rely on from the SAC under Rule 12(f).
The court finds this matter suitable for determination without oral argument. N.D. Cal. Civil L.R. 7-1(b). The court grants the defendants' motion in part and (1) dismisses WFMI, WFM Services, and WFM Group for lack of personal jurisdiction, (2) dismisses Ms. Starr's claims for failure to state a claim against WFM California, and (3) dismisses the plaintiffs' claims for products for which they identify no ingredients (and therefore identify no allergens) for lack of standing. In all other respects, the court denies the defendants' motion to dismiss. The court denies the defendants' motion to strike. The court grants the plaintiffs leave to file an amended complaint within 14 days of the date of this order.
STATEMENT1
1. Allergens and Skin Sensitizers
According to the Centers for Disease Control and Prevention ("CDC"), 8.8 million children (12% of U.S. children) reported skin allergies in 2012.2 Skin allergies are even more prevalent among young *1038children: the CDC reports that 14.2% of children between the ages of 0 and 4 suffered a skin allergy in 2012.3 These numbers may underreport the prevalence of allergic-contact dermatitis : recent studies show that somewhere between 14-70% of children suffer from skin allergies, based on positive patch skin tests.4 Skin allergies are similarly prevalent among adults.5
When skin is exposed to a sufficient amount of a chemical allergen, the skin is "sensitized."6 Upon re-exposure to the allergen, the skin initiates an inflammatory cascade, causing skin changes associated with allergic-contact dermatitis.7 These include redness, edema (fluid retention ), scaling, fissures (cracking), vesicles (fluid-filled sacs), bullae (bubble-like cavities), and eventually oozing.8 Contact sensitization and related skin allergies can severely affect a person's quality of life, depending on the severity and the site of skin sensitization.9 People suffering from noticeable skin allergies will try to hide the symptoms under clothing if possible, and if not, will avoid public spaces entirely.10 In either case, skin allergies can dramatically affect a person's confidence and engagement in life.11
It is difficult to identify the substance causing an allergic response.12 Allergic-contact dermatitis develops several days after exposure to a skin allergen.13 Some substances do not cause symptoms until a week after exposure.14 Additionally, once an individual is sensitized to an allergen, future contact with the allergen can trigger a response in the original site of sensitization.15 For example, if someone had an allergic response to a product used on the face, and later used a different product containing the same allergen on the legs, the allergic response will occur again on the face-even if the face was never exposed to the second product.16 When a consumer cannot identify the material that triggers an allergic reaction, allergic-contact dermatitis will persist, and, it is believed, will take longer to resolve even after the cause is identified.17 Once skin is sensitized, even a minute amount of the chemical allergen is enough to cause a full-blown allergic response.18
The scientific and regulatory definition of a "skin sensitizer" is a substance that causes sensitization by skin contact in a substantial number of persons based on human evidence or appropriate animal testing.19 If a skin sensitizer makes up 0.1% or more of a product, or if the product contains a sensitizer that may elicit an allergic response at concentrations smaller than 0.1% in individuals who are already sensitized to the chemical, the entire product mixture is classified as a skin sensitizer, *1039i.e., the product causes sensitization by skin contact in a substantial number of persons based on human evidence or appropriate animal testing.20 A product that is a skin sensitizer is not hypoallergenic.21
2. Whole Foods's Labeling of Products as "Hypoallergenic"
Whole Foods advertises itself as "America's Healthiest Grocery Store."22 It lists "quality standards" and identifies as its top standard: "We carefully evaluate each and every product we sell."23 Whole Foods stresses not only product safety, but also ingredient safety.24 As Whole Foods explains:
OUR BODY CARE QUALITY STANDARDS
We carry the finest, high-quality beauty, hair and body care products available because we believe the quality of the items and ingredients you put on your body is as important as the foods and nutritional supplements you put in your body. We evaluate the quality of personal care products in terms of ingredients, experience, and efficacy.25 Whole Foods knows that consumers rely upon it to not only test the final product formulation for basic safety, but also to select only those ingredients that it considers to be safe.26
On product labels and on its retail website, Whole Foods represents that certain of the products it sells are "hypoallergenic."27 Whole Foods does not label all of its products as "hypoallergenic."28 Instead, it labels only some of its products as "hypoallergenic," giving consumers the impression that it carefully reviewed each ingredient in its products to ensure that the "hypoallergenic" promise was made for only those products that are truly hypoallergenic.29 These products, however, actually contain skin sensitizers, skin irritants, eye irritants, and other deleterious compounds.30
The plaintiffs name (1) 365 Baby Foaming Wash, (2) 365 Baby Lotion, (3) 365 Baby Shampoo, (4) 365 Bubble Bath, (5) 365 Gentle Skin Cleanser, (6) 365 Kids' Foaming Wash, (7) 365 Maximum Moisture Body Lotion, (8) 365 Moisturizing Lotion, (9) Whole Foods Market Baby Laundry Detergent, (10) Whole Foods Market Organic Laundry Detergent, (11) Wild Kratts Bubble Bath, and (12) Wild Kratts Kids Foaming Body Wash (which the SAC calls the "Falsely Labeled Products").31 Whole Foods represents that each of these products is "hypoallergenic."32 Whole Foods additionally represents that the products are "non-toxic" and "safe," have "only the gentlest ingredients," and/or cause "no tears."33 The plaintiffs allege, *1040however, that each of these products contains known skin sensitizers.34 Each of these products contains known skin or eye irritants, carcinogens, teratogens, mutagens, or pollutants.35 Each of these products contains substances that have not been adequately assessed for safety or skin-sensitization potential.36
The plaintiffs additionally name (1) 365 Diapers, (2) 365 Sustainably Soft Bath Tissue, (3) 365 Sustainably Soft Facial Tissue, (4) 365 Facial Tissue, (5) 365 Paper Towels, and (6) 365 Training Pants.37 Whole Foods represents that each of these products is "hypoallergenic."38 Whole Foods does not disclose the ingredients in these products.39 The plaintiffs allege that these products may contain known skin sensitizers or other harmful chemicals and therefore also may be "Falsely Labeled Products."40
Whole Foods holds itself out to the public as a trusted expert in the area of hypoallergenic, safe, mild, and gentle personal care products.41 For example, in its "Official Whole Foods Market Blog," Whole Foods encourages consumers who want to avoid allergens to purchase Whole-Foods-brand products because they lack the ingredients Whole Foods identifies in its in-house list of banned "unacceptable ingredients" for body-care, premium-body-care, and household cleaners.42 Whole Foods fails to disclose, however, that many ingredients in its products are known skin allergens, even though they are not banned on its list of "unacceptable ingredients."43
Whole Foods knows what ingredients are added to each product and therefore knows that the products at issue contain skin sensitizers, irritants, or otherwise toxic ingredients.44 Whole Foods also knows that consumers prefer hypoallergenic products and will pay a premium for hypoallergenic products or would not purchase such products at all unless they were hypoallergenic as advertised.45 Whole Foods encourages consumers' preference for hypoallergenic products-and specifically for Whole-Foods-brand products-explaining to consumers that "we believe the quality of the items and ingredients you put on your body is as important as the foods and nutritional supplements you put in your body."46 The plaintiffs allege that Whole Foods made false, deceptive, and misleading representations and omissions that its products were hypoallergenic when they were not, with the intent to have customers buy its "hypoallergenic" products over its competitors' products, or over not buying products at all, and to pay a premium for those products.47
3. The Plaintiffs' Purchases of Whole Foods's "Hypoallergenic" Products
For two years, plaintiff Shosha Kellman, a California resident, regularly bought *1041Whole Foods's 365 Gentle Skin Cleanser approximately every four to six weeks from Whole Foods supermarkets in Berkeley and Oakland, California, and sometimes bought Whole Foods's 365 Moisturizing Lotion as well.48 Ms. Kellman and her family members have all suffered skin irritation, eye irritation, dermatitis, and/or an allergic skin reaction in the past.49 Ms. Kellman states that a significant reason for her purchase of these Whole Foods products was that they were labeled "hypoallergenic."50 Ms. Kellman purchased, purchased more of, or paid more for, these products than she would have had she known that the products contained skin sensitizers, irritants, toxins, carcinogens, or otherwise harmful chemicals.51 Had she known at the time that the products were not hypoallergenic and contained these compounds, she would not have purchased them.52
Plaintiff Abigail Starr, a New York resident, regularly bought Whole Foods's 365 Moisturizing Lotion from two Whole Foods supermarkets in Manhattan, New York, and on multiple occasions bought Whole Foods's 365 Bubble Bath, Facial Tissue, and Paper Towels as well.53 Ms. Starr and her family members have all suffered skin irritation, eye irritation, dermatitis, and/or an allergic skin reaction in the past.54 Ms. Starr states that a significant reason for her purchase of these Whole Foods products was that they were labeled "hypoallergenic."55 Ms. Starr purchased, purchased more of, or paid more for, these products than she would have had she known that the products contained skin sensitizers, irritants, toxins, carcinogens, or otherwise harmful chemicals.56 Had she known at the time that the products were not hypoallergenic and contained these compounds, she would not have purchased them.57
STANDARD OF REVIEW
1. Rule 12(b)(1)
The defendants argue that the plaintiffs do not have standing to plead claims for products that they themselves did not purchase and move to dismiss such claims for lack of subject-matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1).
A defendant's Rule 12(b)(1) jurisdictional attack can be either facial or factual. White v. Lee ,
Federal-court jurisdiction extends only to "cases" and "controversies."
*1042Raines v. Byrd ,
"Beyond the constitutional requirements, the federal judiciary has also adhered to a set of prudential principles that bear on the question of standing." Valley Forge Christian College v. Ams. United for Separation of Church & State, Inc. ,
2. Rule 12(b)(2)
WFMI, WFM Services, and WFM Group move to dismiss the claims against them for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2).
" 'In opposing a defendant's motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing that jurisdiction is proper.' " Ranza v. Nike, Inc. ,
" 'Where, as here, the defendant's motion is based on written materials rather than an evidentiary hearing, the plaintiff need only make a prima facie showing of jurisdictional facts to withstand the motion to dismiss.' " Ranza ,
3. Rule 12(b)(6)
The defendants move to dismiss the plaintiffs' claims for false or misleading advertising and for breach of express warranty for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6).
A complaint must contain a "short and plain statement of the claim showing that the pleader is entitled to relief" to give the defendant "fair notice" of what the claims are and the grounds upon which they rest. See Fed. R. Civ. P. 8(a)(2) ; Bell Atl. Corp. v. Twombly ,
To survive a motion to dismiss, a complaint must contain sufficient factual allegations that, when accepted as true, " 'state a claim to relief that is plausible on its face.' " Ashcroft v. Iqbal ,
ANALYSIS
1. The Court Lacks Personal Jurisdiction Over WFMI, WFM Services, and WFM Group
1.1 Governing Law
In diversity cases such as this one, " '[f]ederal courts ordinarily follow state law in determining the bounds of their jurisdiction over persons.' " Picot v. Weston ,
There are two types of personal jurisdiction: general and specific. Bristol-Myers Squibb Co. v. Super. Ct. , --- U.S. ----,
1.1.1 General jurisdiction
"A court with general jurisdiction may hear any claim against that defendant, even if all the incidents underlying the claim occurred in a different State." Bristol-Myers ,
1.1.2 Specific jurisdiction
"Specific jurisdiction is very different." Bristol-Myers ,
(1) The non-resident defendant must purposefully direct his activities or consummate some transaction with the forum or resident thereof; or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws;
(2) the claim must be one which arises out of or relates to the defendant's forum-related activities; and *1045(3) the exercise of jurisdiction must comport with fair play and substantial justice, i.e. it must be reasonable.
Picot ,
1.2 Application
1.2.1 General jurisdiction
WFMI, WFM Services, and WFM Group are not incorporated in California and do not have their principal places of business here. WFMI and WFM Services are incorporated and have their principal places of business in Texas.58 WFM Group is incorporated in Delaware and has its principal place of business in Texas.59 Consequently, only in an "exceptional case" could they be subject to general jurisdiction in California. Ranza ,
The plaintiffs argue that the defendants are subject to general jurisdiction because (as they allege) (1) WFMI has employees in California, operates stores in California, and dictates every facet of WFM California's business and (2) WFM Services has employees and other assets in California and designs, develops, advertises, and markets products to be sold in California.60 This fails to establish general jurisdiction for two reasons. First, the defendants have submitted a sworn declaration that WFMI and WFM Services do not in fact have any employees in California, do not operate any stores in California, do not design, manufacture, distribute, or sell and goods in California, and do not dictate WFM California's business.61 The plaintiffs say that this contradicts the allegations in their SAC.62 But on a motion to dismiss for lack of personal jurisdiction where the defendants have submitted a sworn declaration, the plaintiffs may not rest on bare, unsworn allegations in their complaint. Mavrix ,
Second, even if one set aside the defendants' declaration and credited the plaintiffs' allegations about employees in California, *1046store operations in California, product designs or sales in California, and dictating operations in California, their general-jurisdiction arguments would fail. The allegations do not satisfy the "so continuous and systematic as to render the foreign corporation essentially at home in the forum State" standard that the Supreme Court set out in Daimler and Bristol-Myers . They are therefore insufficient for general jurisdiction. Cf. BNSF Ry. Co. v. Tyrrell , --- U.S. ----,
1.2.2 Specific jurisdiction
The plaintiffs do not establish that WFMI, WFM Services, or WFM Group purposefully directed any of their activities or consummated some transaction with California or a California resident or performed some act by which they purposefully availed themselves of the privilege of conducting activities in California.
The plaintiffs first argue that WFMI and WFM Services "intentionally engaged in long-term commercial activities with WFM California and WFM California 365 Brand to sell their private label goods to California consumers."65 But WFMI and WFM Services themselves do not sell any products (inside or outside California).66 WFM California- a separate legal entity-may be selling products in California. But where "[WFMI or WFM Services] itself has not put any products into the stream of commerce that might have ended up in the forum, whether through a distributorship agreement or otherwise[, t]hat alone ends the inquiry." Holland Am. Line Inc. v. Wartsila N. Am., Inc. ,
*1047The plaintiffs argue that WFM California and WFM Services are alter egos of WFMI and, consequently, their activities can be imputed to WFMI for jurisdictional purposes.70 The defendants have submitted a sworn declaration, however, that WFMI, WFM California, and WFM Services each maintained an independent corporate, partnership, or limited-liability-company structure.71 In any event, the plaintiffs' unsworn and conclusory allegations that WFMI shares office space, employees, and corporate control with its subsidiaries, sets policies for its subsidiaries, and indemnifies its subsidiaries-even if they were credited over the defendants' sworn declaration-do not establish that the various Whole Foods entities are alter egos. " 'A parent corporation may be directly involved in financing and macro-management of its subsidiaries ... without exposing itself to a charge that each subsidiary is merely its alter ego.' " Ranza ,
Finally, the plaintiffs argue that the court has personal jurisdiction over WFMI on an agency theory because "its California subsidiaries perform services 'sufficiently important to the parent corporation that if it did not have a representative to perform them, the parent corporation ... would undertake to perform substantially similar services,' " quoting Harris Rutsky & Co. Insurance Services, Inc. v. Bell & Clements Ltd. ,
* * *
As the plaintiffs have not met their burden of establishing either general or special jurisdiction over WFMI, WFM Services, or WFM Group, the court dismisses them under Federal Rule of Civil Procedure 12(b)(2).
*10492. Ms. Starr Does Not Plead a Plausible Claim Against WFM California
The defendants argue that the court lacks jurisdiction over plaintiff Abigail Starr's claims. It does not appear that Ms. Starr has any claims against the one remaining defendant in this action, WFM California. The SAC does not state or distinguish which plaintiffs are bringing which claims against which defendants for any of the seven claims alleged,75 and neither side addresses in their motion-to-dismiss filings whether Ms. Starr is bringing any claims against WFM California (as opposed to claims only against the other defendants). But given that Ms. Starr alleges only that she bought products in New York and alleges only that WFM California operates stores in Northern California, it does not appear that Ms. Starr pleads a plausible claim against WFM California. The court dismisses Ms. Starr's claims, with leave to amend.
3. Ms. Kellman Pleads a Plausible Claim for Violations of California's Consumers Legal Remedies Act, False Advertising Law, and Unfair Competition Law
3.1 Governing Law
Claims under the CLRA, FAL, and UCL are governed by the "reasonable consumer" test. Williams v. Gerber Prods. Co. ,
"The California Supreme Court has recognized that these laws prohibit 'not only advertising which is false, but also advertising which, although true, is either actually misleading or which has a capacity, likelihood or tendency to deceive or confuse the public.' "
3.2 Application
Each of the complained-of products bears a label that it is "hypoallergenic."76 Ms. Kellman alleges that a reasonable consumer would believe that a product labeled as hypoallergenic will not cause skin irritation, skin corrosion, or eye damage when used as directed.77 Ms. Kellman further alleges that a reasonable customer would believe that a hypoallergenic product does not contain a significant amount of ingredients known to *1050cause skin irritation, skin corrosion, and/or eye damage.78
Ms. Kellman further alleges that if a skin sensitizer makes up more than 0.1% of a product, or if a product contains a sensitizer that may elicit an allergic response at concentrations smaller than 0.1% in individuals who are already sensitized to the chemical, the entire product is classified as a skin sensitizer, i.e., the product causes skin sensitization in a substantial number of people and is therefore not hypoallergenic.79 Ms. Kellman further alleges that all of the complained-of products contain skin-sensitizer concentrations over those thresholds.80 This plausibly alleges that the products cause skin sensitizations in a substantial number of people, and that they therefore are not hypoallergenic, and thus that a reasonable customer would be likely to be deceived by their "hypoallergenic" label. This states a claim.
The defendants raise a number of arguments, but none of them is availing. First, the defendants state that the two products that Ms. Kellman purchased "do not simply say 'hypoallergenic.' They state (correctly): 'Independent lab results show this gentle formula is hypoallergenic and noncomedogenic' or 'Independent lab results show this daily moisturizer is hypoallergenic and noncomedogenic.' "81 The defendants claim that "[a]t most, the representations affirm that the products have been tested and determined to be hypoallergenic" and that "a statement that says the product has been tested to confirm it is less likely to cause a reaction than a similar product means something different than just saying 'hypoallergenic.' "82 The defendants argue that the plaintiffs do not allege that the defendants falsified or misstated the test results, and hence their statements are not misleading. This argument fails. It is certainly plausible at the pleading stage that a reasonable customer would understand a representation that a product has been independent-lab tested and determined to be hypoallergenic to mean that the product actually is hypoallergenic. The defendants cite no cases that support their argument that adding the words "[i]ndependent lab results show this [product] is" before the word "hypoallergenic" somehow renders their representation less misleading if (as sufficiently alleged here) the product is in fact not hypoallergenic. If anything, saying that the "hypoallergenic" representation is based on lab results may make it more misleading, not less. Cf. In re Clorox Consumer Litig. ,
Second, the defendants argue that "reasonable customers would not interpret these statements as a promise that the products contain no skin sensitizers or will never cause an allergic response."83 This mischaracterizes the plaintiffs' claims. The plaintiffs are not alleging that a product must contain no skin sensitizers or never cause an allergic response to be hypoallergenic.84 They are alleging that the defendants' products contain a sufficiently high concentration of skin sensitizers that they may cause sensitization reactions in a substantial *1051number of people.85 The defendants appear to object to the plaintiffs' definition of "hypoallergenic" and argue that under other interpretations of "hypoallergenic" (e.g., "products that manufacturers claim produce fewer allergic reactions than other products"86 ), their statements are not false. But how a reasonable customer would interpret "hypoallergenic" is not a question that can be resolved (at least on this record) on a motion to dismiss. Cf. Jou v. Kimberly-Clark Corp. , No. C-13-03075 JSC,
Third, the defendants argue that "[r]easonable customers simply do not think in terms of skin sensitizers, sensitized individuals or 0.1% concentration levels. They think in terms of the likelihood that this product may cause an allergic response."88 This again mischaracterizes the plaintiffs' claims. The plaintiffs are not alleging that reasonable customers think in terms of skin sensitizers or concentration levels. They allege that a product with more than a 0.1%-skin-sensitizer-concentration level (or a lower concentration level for certain people and certain sensitizers) "causes sensitization in a substantial number of persons,"89 i.e., that as a factual matter, a substantial number of people who use such a product will suffer allergic reactions. As the defendants concede, this is what customers think about. The defendants appear to object to that factual allegation and intimate that 0.1%-concentration levels do not in fact cause people to suffer allergic reactions.90 But whether 0.1%-concentration levels actually cause people to suffer allergic reactions (or, for that matter, whether the products at issue actually contain 0.1%-concentration levels) is a fact issue that cannot be resolved on a motion to dismiss. The plaintiffs have alleged that they do, and at this juncture the court must accept those allegations as true. Cf. Gitson v. Trader Joe's Co. , No. 13-cv-0133-WHO,
Ms. Kellman has pleaded plausible claims under the CLRA, FAL, and UCL.
4. Ms. Kellman Pleads a Plausible Claim for Breach of Express Warranty
4.1 Governing Law
"To prevail on a breach of express warranty claim, Plaintiffs must *1052prove: (1) 'the seller's statements constitute an affirmation of fact or promise or a description of the goods; (2) the statement was part of the basis of the bargain; and (3) the warranty was breached.' " Brown v. Hain Celestial Grp., Inc. ,
4.2 Application
Ms. Kellman plausibly alleges that the defendants' labeling of their products as "hypoallergenic" constituted an affirmation of fact or promise or a description of the goods as being hypoallergenic, that the statement was part of the basis of the bargain, and that the defendants breached their warranty because their products were in fact not hypoallergenic. The defendants rehash their argument that the labels for the two products Ms. Kellman bought state only that "lab results show" the products are hypoallergenic, not that the products actually are hypoallergenic. The addition of the language "lab results show" to the defendants' claim that the products are hypoallergenic does not vitiate a breach-of-express-warranty claim; if anything, it may make a claim more plausible. Cf. Clorox ,
Ms. Kellman has pleaded a plausible claim for breach of express warranty.
5. Ms. Kellman Lacks Standing to Pursue Claims for Unpurchased Products for Which She Identifies No Ingredients or Allergens, But She Has Standing to Pursue Claims for the Other Unpurchased Products Listed in the SAC
5.1 Governing Law
"There is no controlling authority on whether Plaintiffs have standing for products they did not purchase."
*1053Miller v. Ghirardelli Chocolate Co. ,
Courts look to a number of factors in determining whether products and representations about the products are substantially similar. One line of cases suggests that "the best approach is one which focuses on whether the type of claim and consumer injury is substantially similar as between the purchased and unpurchased products. That determination necessarily focuses on whether the resolution of the asserted claims will be identical between the purchased and unpurchased products." Ang v. Bimbo Bakeries USA, Inc. , No. 13-cv-01196-WHO,
5.2 Application
Ms. Kellman bought Whole Foods's 365 Gentle Skin Cleanser and 365 Moisturizing Lotion. She brings claims for those products, as well as claims for (broadly speaking) certain bath washes (for adults, children, and babies), lotions (for babies), laundry detergents, tissues, paper towels, diapers, and training pants, which she herself did not purchase. The defendants argue that the latter products are not substantially similar to the cleanser and lotion that Ms. Kellman bought and that Ms. Kellman therefore lacks standing to bring claims for those products.
As a preliminary matter, Ms. Kellman does not have standing to bring claims for the tissues, paper towels, diapers, and training pants listed in the SAC. She identifies no ingredients for these products and does not allege that they actually contain any skin sensitizers, irritants, or other deleterious compounds. This is insufficient to plead that there were any misrepresentations regarding these products, much less that any misrepresentations are substantially similar to the alleged misrepresentations for the two products that she bought. Cf. Leonhart v. Nature's Path Foods, Inc. , No. 13-cv-00492-BLF,
By contrast, the court holds that the unpurchased products for which Ms. Kellman does allege ingredients are sufficiently similar to the products that Ms. Kellman bought to give rise to standing. The unpurchased body-care products-baby and kids' foaming washes, lotions, shampoos, and bubble baths-are an easier case. Like the purchased products, all are either lotions or cleansing products. All come into direct contact with the body. All bear the same representation as the purchased products: that they are "hypoallergenic."92 All of them share common ingredients with the purchased products that Ms. Kellman alleges are known allergens and skin sensitizers. And the type of claim and alleged consumer injury is substantially the same as between the purchased and unpurchased products: that people buy them believing them to be hypoallergenic when in fact they contain sufficiently high concentrations of skin sensitizers that they may cause reactions in a substantial number of people.
The defendants argue that the products Ms. Kellman bought and the unpurchased products are different because, for example, the former products are meant for adults while several of the latter are meant for babies or children, the former products include a face cleanser while several of the latter are shampoos that clean hair instead of faces, and so forth.93 But these distinctions do not render the products per se dissimilar for purposes of a standing analysis. Cf. Shank ,
The laundry detergents present a somewhat closer case. Like the unpurchased body-care products, the laundry detergents bear the same "hypoallergenic" representation as the purchased products and share common ingredients with the purchased products that Ms. Kellman alleges are known allergens and skin sensitizers.94
*1055They differ from the purchased products in that they are not used directly on the skin or body in the same way that the purchased products are. But they are similar in that they come into contact with the skin or body (through clothes washed in those detergents), even if they are not used directly on the skin or body. Significantly, the alleged consumer injury is substantially the same as between the laundry detergents and the products Ms. Kellman bought, namely, that people buy them believing them to be hypoallergenic when in fact they contain sufficiently high concentrations of skin sensitizers that they may cause reactions in a substantial number of people when they are used. As one of the cases the defendants cite cautions, "courts 'should not be too rigid in applying standing requirements to proposed classes.' In particular, when evaluating whether a plaintiff has standing to sue on behalf of others who have suffered similar, but not identical injuries, ... [courts] must be careful not to employ too narrow or technical an approach. Rather, [courts] must examine the questions realistically: [they] must reject the temptation to parse too finely, and consider instead the context of the inquiry." Romero v. HP, Inc. , No 16-CV-05415-LHK,
6. The Court Denies the Defendants' Motion to Strike Paragraphs From the SAC
6.1 Governing Law
A "court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Fed. R. Civ. P. 12(f). "Motions to strike are regarded with disfavor, as they are often used as delaying tactics, and should not be granted 'unless it is clear that the matter to be stricken could have no possible bearing on the subject matter of the litigation.' " Brown ,
6.2 Application
Motions to strike are disfavored, and the defendants have not met the standard for *1056a motion to strike here. Among other things, the defendants' argument that allegations regarding unpurchased products should be stricken is unavailing in light of the court's ruling that Ms. Kellman has standing to pursue claims for unpurchased products.
CONCLUSION
For the foregoing reasons, the court grants the defendants' motion in part and (1) dismisses WFMI, WFM Services, and WFM Group for lack of personal jurisdiction, (2) dismisses Ms. Starr's claims for failure to state a claim against WFM California, and (3) dismisses the plaintiffs' claims for products for which they identify no ingredients (and therefore identify no allergens) for lack of standing. In all other respects, the court denies the defendants' motion to dismiss. The court denies the defendants' motion to strike.
The plaintiffs may file an amended complaint within 14 days of the date of this order. (If they file an amended complaint, they must also file a blackline of their amended complaint against their SAC as an attachment.)
IT IS SO ORDERED.
Related
Cite This Page — Counsel Stack
313 F. Supp. 3d 1031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kellman-v-whole-foods-mkt-inc-cand-2018.