Little v. NatureStar, LLC

District Court, E.D. California·Decided September 11, 2024·No. 1:22-cv-00232·Unknown

Opinion

TERRI LITTLE, an individual, Case: 1:22-cv-00232-JLT-EPG Plaintiff, ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ v. MOTION TO DISMISS FIRST AMENDED COMPLAINT NATURESTAR NORTH AMERICA, LLC, a Minnesota Limited Liability Company; (Doc. 23) TARGET CORPORATION, a Minnesota Corporation, Defendants. Terri Little brings this putative class action lawsuit against Defendants NatureStar North America, LLC and Target Corporation for the allegedly false and deceptive business practice of advertising and marketing single-use tableware and food storage bags as “compostable,” when, according to Plaintiff, they contain perfluoralkyl and polyfluroalkyl substances (“PFAS”), which are not compostable. (FAC, Doc. 22 at ¶¶ 1–3, 20.) Pending is Defendants’ Motion to Dismiss, brought pursuant to Federal Rule of Civil Procedure 12(b)(1), challenging Plaintiff’s Article III standing to bring this case. For the following reasons, Defendants’ motion is GRANTED IN A. Compostable Products & PFAS Compostable products are those that are “capable of being broken down into non-toxic elements (compost)[,] which are beneficial to the soil.” (FAC, Doc. 22 at ¶¶ 1, 18 (“[C]ompost is comprised largely of ‘decayed organic matter’ that ‘is used for fertilizing and conditioning land.’”) (footnote and citation omitted), 27.) Many environmentally-conscious consumers, who are concerned with the “proliferation of trash and waste” intentionally purchase compostable products, and “are willing to pay more for such products, which often cost significantly more than non-compostable disposable bags, plates, and bowls.” (Id. at ¶¶ 2, 16.) “PFAS are highly persistent synthetic fluorinated chemicals which have been associated with a variety of negative health effects such as cancer, developmental toxicity, [and] immunotoxicity,” and due to their strong synthetic resistance, PFAS chemicals “do not break down and never become part of usable compost.” (Id. at ¶¶ 20–22.) When introduced into the environment, PFAS “seep into and contaminate both land and water and then never leave.” (Id. at ¶¶ 21, 22 (“PFAS’[s] characteristic carbon-fluorine bonds make them extremely resistant to degradation, even at high temperatures. . . these chemicals do not degrade in the environment.”).) Thus, if introduced into the soil, PFAS will contaminate crops grown in that soil, and the meat from the farm animals that graze there. (Id.) If compost is contaminated with PFAS, then the PFAS will contaminate the soil that is “treated or fertilized with that compost,” and subsequently, whatever is grown or grazed in that soil. (Id.) Though PFAS are highly toxic, they have “grease and water-resistant properties,” and are thus “often added to paper plates, bowls, food storage, and packaging products (together, ‘Foodware’),” leading to “increased PFAS exposure in humans and in the environment.” (Id. at ¶¶ 24, 26 (alleging PFAS can affect the human immune system, cause cancer, and disrupt thyroid hormone production).) Foodware that contains PFAS may contaminate its food items and leach PFAS “from the product into the compost stream, contaminating the compost itself and the organic matter grown using that composted material.” (Id. at ¶ 25.) Therefore, environmentally conscious consumers who actively try to avoid purchasing PFAS-contaminated products, look to private organizations, such as TÜV Austria and the Biodegradable Products Institute (“BPI”), which certify that a product is compostable. (Id. at ¶¶ 28, 34.) /// B. Plaintiff’s Purchase of Products Plaintiff is an environmentally conscious consumer and, when given the choice, opts to purchase products that are compostable, recyclable, or reusable. (Doc. 22 at ¶¶ 8, 16.) In 2021, Plaintiff visited a Target store in Hanford, California, and, relying on Defendants’ representations that certain products were compostable, purchased “a package of twenty 9” dinner plates, a package of twenty 16 oz. cereal bowls, one package of quart-sized food storage bags, and one package of gallon-sized food storage bags” [hereinafter, “Products”]. (Id. at ¶¶ 4, 8.) The Products’ labeling as “compostable” “was a determining factor in Plaintiff’s decision to purchase each of the foregoing Products,” and was why she “specifically selected” to purchase them. (Id. at ¶¶ 5, 8.) Though the Products bore a compostability certification from both TÜV Austria and BPI,1 when Plaintiff sent the Products for independent testing by a third-party laboratory, the “test results indicate[d] the presence of significant amounts of PFAS within the bowls and plates [she] purchased, in direct contradiction of Defendants’ claims that their Products are compostable.” (Id. at ¶¶ 28–29, 34–37.) Had she known that the Products were not actually compostable, Plaintiff “would not have purchased [them] and/or would not have paid the premium price for [them].” (Id. at ¶ 5; see also id. at ¶ 8 (“Had Plaintiff known that the Products contained PFAS chemicals, and thus could not break down into compostable material, she would not have purchased the Products.”).) Plaintiff alleges that other environmentally conscious consumers who purchase these Products in the belief that they are compostable are also “unwittingly hindering sustainable composing [sic] efforts.” (Id. at ¶¶ 30, 31.) Plaintiff brings this putative class action lawsuit, in relevant part, on behalf of: “All persons who purchased the Products for personal, family or household purposes in California (either directly or through an agent) during the applicable statute of limitations period (the ‘Class’).” (Doc. 22 at ¶ 41 (boldface in original).) Plaintiff brings six causes of action for, inter alia, violations of provisions of California’s Unfair Competition Law, Consumers Legal 1 Plaintiff alleges that at the time of purchase, the “products were not listed on BPI’s website as being certified by BPI as being compostable.” (Doc. 22 at ¶ 35.) Furthermore, the packaging for the storage bags states they were made in Malaysia, however, Plaintiff received confirmation from BPI that “no factory in Malaysia had been certified by BPI as producing compostable resealable food storage bags.” (Id. at ¶ 36.) Instead, when Plaintiff removed the sticker placed Remedies Act, the California Public Resources Code, Section 5 of the Federal Trade Commission Act, and theories of breach of express warranty and unjust enrichment. (Doc. 22 at 14–24.) Specifically, Plaintiff seeks, in part, compensatory and punitive damages, as well as a Court Order “preliminarily and permanently enjoin[ing] Defendants from conducting their business through the unlawful, unfair, or fraudulent business acts or practices, untrue and misleading advertising, and other violations of law described in this Complaint[.]” (Id. at 24–25.) Now pending is Defendants’ Motion to Dismiss the FAC, brought pursuant to Federal Rule of Civil Procedure 12(b)(1), principally challenging Plaintiff’s Article III standing to bring this action.2 (Doc. 23.) As the motion is fully briefed, (Opp’n, Doc. 24; Reply, Doc. 25), and ripe for consideration and disposition, the Court turns to the analysis of Defendants’ motion. A. Rule 12(b)(1) “Federal courts are courts of limited jurisdiction,’ possessing ‘only that power authorized by Constitution and statute.’” Gunn v. Minton, 568 U.S. 251, 256 (2013) (quoting Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994)); Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 552 (2005). Pursuant to Rule 12(b)(1) of the

Little v. NatureStar, LLC, (E.D. Cal. 2024).

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