Magpayo v. Walmart Inc.

District Court, N.D. California·Decided October 18, 2024·No. 3:24-cv-01350·Unknown

Opinion

PEARL MAGPAYO, Case No. 24-cv-01350-WHO

Plaintiff, ORDER GRANTING MOTION TO v. DISMISS

WALMART INC., Re: Dkt. No. 30 Defendant.

Plaintiff Pearl Magpayo filed this putative class action seeking to challenge the advertising and label disclosures on defendant’s Spring Valley Fish Oil Omega-3 dietary supplements (“Products”). First Amended Complaint (“FAC,” Dkt. No. 25) ¶¶ 35-36. Magpayo claims that the packaging on defendant Walmart’s fish oil supplements convey to reasonable consumers that Omega-3 supplements in general and Omega-3 fish oil supplements in particular prevent heart disease, but that those claims are false or misleading and that supplements may, in fact, be detrimental to heart health. FAC ¶¶ 4-8, 10-17. She purchased a bottle of Spring Valley Omega-3 Fish Oil Soft Gels Dietary Supplement from a Walmart store in Northern California in June 2023. FAC ¶ 31. Walmart argues that the claims are preempted by federal law or otherwise fail and moves to dismiss the FAC. Magpayo alleges that the following health representations are prominently displayed on the front label of Walmart’s Products:

• “Fish Oil is a source of Omega-3 fatty acids that support heart health” • “Heart Health” • A heart symbol FAC ¶¶ 13; 36.1 She contends that these “heart health representations lead reasonable consumers to believe the Products’ Omega-3s support heart health (i.e., that the Omega-3s in the Products reduce the risk of heart disease).” Id. ¶ 14. That disease message, according to Magpayo, is reinforced by online advertising that expressly links the Product to reducing the risk of heart disease. Id. ¶¶ 15-16. These representations are allegedly false and misleading “because the Products’ Omega-3s do not support heart health (i.e., the Omega-3s in the Products do not reduce the risk of heart disease).” Id. ¶ 17. Magpayo contends that the “heart health representations also lead reasonable consumers to believe there is—at least some—conclusive research to show that the Products’ Omega-3s reduce the risk of heart disease. . . . [but] there is no conclusive research to show that the Products’ Omega-3s reduce the risk of heart disease.” Id. ¶ 18. Magpayo asserts that the Product’s label is making a type of claim that the Food and Drug Administration (“FDA”) would consider an implied health claim. As such, Walmart is required to but does not make a disclaimer on the Product’s label that: “‘Supportive but not conclusive research shows that consumption of EPA and DHA Omega-3 fatty acids may reduce the risk of coronary heart disease.’ (emphasis added). This is because the FDA has found that health claims related to heart disease on Omega-3 supplements lack significant scientific agreement.” Id. ¶¶ 20, 69-81. Magpayo notes that she is not basing any cause of action on Walmart’s violation of the FDA regulations but cites to the disclosure the FDA requires for health claims to support her assertion that the health claims Walmart makes are significant and material to consumers. See FAC ¶ 21 (“the fact that the FDA requires such a disclaimer shows that reasonable consumers can

1 The products included are: Spring Valley Omega-3 Fish Oil Soft Gels, Heart Health Dietary Supplement, 1000 mg, 60 Count; Spring Valley Proactive Support Omega-3 Mini from Fish Oil Dietary Supplement, 1000 mg, 120 Count; Spring Valley Omega-3 Fish Oil For Heart and Brain Health, Dietary Supplement Soft gels, 1000 mg, 60 Count; Spring Valley Maximum Care Omega- 3 from Fish Oil Eye Brain Bone & Heart Health Dietary Supplement Soft gels, 2000 mg, 120 Count; Spring Valley Fish Oil Omega-3 General & Heart Health Dietary Supplement Soft gels, 500 mg, 60 Count, 120, & 180 count; Spring Valley Proactive Support Omega-3 from Fish Oil Heart General & Brain Health Dietary Supplement Soft gels, 1000 mg, 120 Count; Spring Valley Omega-3 Fish Oil Soft Gels, 1000 mg, 180 Count; Spring Valley Omega-3 Fish Oil Brain & Heart be misled about the level of scientific support that exists for a health claim.”); see also id. ¶¶ 88- 89. To support her claim that the labels are false and misleading, Magpayo identified a number of recent studies and sources that purportedly conclude there are no cardiovascular benefits from taking fish oil Omega-3 supplements and very few benefits that might be secured from other types of Omega-3 products. See FAC ¶¶ 45-57. She also identified studies and sources concluding there are “potential risks” from taking Omega-3 fish oil supplements, because “some” supplements may contain cholesterol, oxidized fatty acids, saturated fatty acids, or other contaminants that can negate the purported benefits of certain fish oil supplements. Id. ¶¶ 58-65. Magpayo pleads causes of action based on violations of: (1) California’s Consumers Legal Remedies Act (“CLRA,” Cal. Civ. Code § 1750 et seq.); (2) California’s False Advertising Law (“FAL,” Cal. Bus. & Prof. Code § 17500 et seq.); (3) California Unfair Competition Law (“UCL,” Cal. Bus. & Prof. Code §17200 et seq.); (4) Breach of Express Warranty (Cal. Com. Code § 2313); (5) Breach of the Implied Warranty; and (6) Quasi-Contract/Unjust Enrichment/Restitution. Walmart moves to dismiss all claims. Under Federal Rule of Civil Procedure 12(b)(6), a district court must dismiss a complaint if it fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when the plaintiff pleads facts that “allow the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). There must be “more than a sheer possibility that a defendant has acted unlawfully.” Id. While courts do not require “heightened fact pleading of specifics,” a plaintiff must allege facts sufficient to “raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555, 570. In deciding whether the plaintiff has stated a claim upon which relief can be granted, the Court accepts the plaintiff’s allegations as true and draws all reasonable inferences in favor of the the court is not required to accept as true “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008). If the court dismisses the complaint, it “should grant leave to amend even if no request to amend the pleading was made, unless it determines that the pleading could not possibly be cured by the allegation of other facts.” Lopez v. Smith, 203 F.3d 1122, 1127 (9th Cir. 2000). In making this determination, the court should consider factors such as “the presence or absence of undue delay, bad faith, dilatory motive, repeated failure to cure deficiencies by previous amendments, undue prejudice to the opposing party and futility of the proposed amendment.” Moore v. Kayport Package Express, 885 F.2d 531, 538 (9th Cir. 1989). While the FAC

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Magpayo v. Walmart Inc., (N.D. Cal. 2024).

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