KetoNatural Pet Foods v. Hill's Pet Nutrition

Court of Appeals for the Tenth Circuit·Decided July 14, 2026·No. 24-3185·Published

Opinion

Appellate Case: 24-3185 Document: 51-1 Date Filed: 07/14/2026 Page: 1 FILED

United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS July 14, 2026 Christopher M. Wolpert

FOR THE TENTH CIRCUIT Clerk of Court

KETONATURAL PET FOODS, INC., individually and on behalf of all others similarly situated,

Plaintiff - Appellant, v. No. 24-3185

HILL’S PET NUTRITION, INC., a subsidiary of Colgate-Palmolive Co.,

Defendant - Appellee.

Appeal from the United States District Court for the District of Kansas (D.C. No. 2:24-CV-02046-KHV-ADM)

Thomas H. Burt (Kath M. McGuire, with him on the briefs), Wolf Haldenstein Adler Freeman & Herz, LLP, New York, New York, for Plaintiff-Appellant.

Stanley J. Panikowski, DLA Piper LLP, San Diego, California (Melissa A. Reinckens, DLA Piper LLP, San Diego, California, and David M. Horniak, DLA Piper LLP, Washington, D.C., with him on the brief) for Defendant-Appellee.

Before TYMKOVICH, PHILLIPS, and McHUGH, Circuit Judges.

TYMKOVICH, Circuit Judge.

KetoNatural Pet Foods filed a class action against a competing pet food company, Hill’s Pet Nutrition, for false advertising under the Lanham Act. Hill’s produces pet food

Appellate Case: 24-3185 Document: 51-1 Date Filed: 07/14/2026 Page: 2

that contains grain; KetoNatural’s pet food is grain free. KetoNatural alleged that Hill’s and its partner veterinarians and non-profit organizations made false statements that grain-free pet food is linked to a higher risk of canine heart disease. KetoNatural claimed that Hill’s, the veterinarians, and the non-profits conspired to falsely disparage grain-free pet food to harm KetoNatural’s sales.

The district court dismissed KetoNatural’s complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). It held that KetoNatural failed to plausibly allege two elements of a Lanham Act claim: (1) that the challenged statements were commercial speech, and (2) that the challenged statements were literally false. We conclude that the district court erred in part. KetoNatural plausibly alleged that some statements by Hill’s were commercial speech that was false. The challenged statements by the veterinarians and non-profits, however, were not commercial speech.

Exercising our jurisdiction under 28 U.S.C. § 1291, we AFFIRM in part and REVERSE in part, and we REMAND for proceedings consistent with this opinion.

I. Background

A. Factual Background Because we review the complaint at the motion-to-dismiss stage, we take the factual allegations from the complaint as true. See SEC v. Shields, 744 F.3d 633, 640 (10th Cir. 2014).

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1. The Parties and Alleged Co-Conspirators Hill’s is one of the largest and oldest American pet food companies. It primarily sells complete-diet pet food that contains grain as a major ingredient. Hill’s and two other pet food companies dominate the market for “traditional” grain-containing complete-diet pet food in the United States. Before Hill’s’ sales were undermined by the non-traditional pet food boom, Hill’s was the third-largest seller of complete-diet dog food in the United States. KetoNatural is a startup that produces and sells grain-free pet food. KetoNatural alleges that when Hill’s’ sales began to fall, it conspired with several veterinarians and two ostensibly independent non-profits to publicize the connection between grain-free diets and dilated cardiomyopathy, a deadly canine heart disease. 1 As a marketing strategy, Hill’s has forged relationships with veterinary professionals. It proclaims itself the “#1 Vet-Recommended Brand.” App. 21. To ensure veterinary patronage, Hill’s offers free continuing-education courses and literature to veterinarians and has partnered with veterinarian researchers to support its marketing. In return, Hill’s provides partner veterinarians with financial support and promotes their work through its website. Hill’s also funds research at various veterinary schools where partner veterinarians are located.

In addition to directly funding veterinarians, Hill’s maintains connections to the larger veterinary world by funding two non-profits that promote animal welfare. Morris

1 The parties’ briefing and many of the challenged statements refer to the disease as “DCM,” but for readability we refer to it as “canine heart disease.”

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Animal Foundation funds veterinary research projects and institutions, including the projects and institutions of the alleged co-conspirator veterinarians. And the Mark Morris Institute contributes to veterinary education by producing textbooks, continuing education courses, and course materials. Hill’s’ employees and directors have served on the boards of both organizations.

KetoNatural alleges that Hill’s conspired with its partner veterinarians and non-profits to paint a false picture of the dangers of KetoNatural’s grain-free pet food.

2. The Alleged False-Statements Campaign As the grain-free pet food market gained popularity in the United States in the early 2010’s, Hill’s’ market share declined, falling by more than 20% from 2014 to 2017. Though Hill’s had long been the third-largest seller of complete-diet dog food in the United States, it fell to fourth behind a non-traditional dog food company. Recognizing its financial decline, Hill’s embarked on a marketing strategy to disparage all non-traditional pet foods. It did this by fabricating a link between non-traditional pet food—called “BEG” pet food—and canine heart disease. BEG pet foods are those that are produced by small “boutique” companies, made from “exotic” ingredients, or are “grain-free.” 2

2 According to the complaint, the BEG category is not unified by a single nutritional quality. App. 64. Boutique refers to pet food produced by a company smaller than the three well-established grain-containing pet food companies, even if that pet food has the same ingredients as Hill’s. Exotic refers to pet food containing various ingredients that apply to every pet food save the three traditional grain- containing ones. Grain-free is self-explanatory. These three categories cover the

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KetoNatural alleges that because of Hill’s’ targeted marketing campaign, Hill’s’

revenues grew by more than 50% from 2018 to 2022. Sales in the BEG industry, by contrast, suffered the opposite fate. In 2018, for example, BEG sales were growing at over 8% annually. But after the alleged disparagement campaign, BEG sales reversed and began to decrease by nearly 6% per year. KetoNatural alleges that its pet food sales suffered a similar fate. 3 KetoNatural alleges that Hill’s and its co-conspirators embarked on a campaign to violate the Lanham Act by making, orchestrating, and publicizing a number of false statements that disparaged BEG pet food like KetoNatural’s. The statements generally fall into the categories below:

First, Hill’s’ webpages and links. Hill’s claimed on its website that BEG diets were connected to canine heart disease and linked to veterinarians’ blog posts stating the same.

Second, Hill’s’ veterinary education materials. Hill’s offered educational materials and continuing education courses to veterinarians on its website that similarly asserted the false link.

breadth of the complete-diet pet food industry save that of Hill’s and the two other traditional pet food companies.

KetoNatural did not provide revenue information in its complaint for this 3

period, but it asserts that its injuries are typical of the BEG industry. It intends to prove the damages caused by Hill’s’ marketing campaign at trial.

Appellate Case: 24-3185 Document: 51-1 Date Filed: 07/14/2026 Page: 6

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