McVetty v. TomTom North America, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 13, 2021
Docket7:19-cv-04908
StatusUnknown

This text of McVetty v. TomTom North America, Inc. (McVetty v. TomTom North America, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McVetty v. TomTom North America, Inc., (S.D.N.Y. 2021).

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT ELECTRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK DOC #: DATE FILED: 3/13/21 FRANCIS MCVETTY AND JANE DOE, individually and on behalf of all others similarly situated oe 19 CV 4908 (NSR) J Plaintiffs, OPINION & ORDER

TOMTOM NORTH AMERICA, INC., Defendant. NELSON S. ROMAN, United States District Judge: Plaintiffs Francis McVetty and Jane Doe, individually and behalf of all others similarly situated (collectively, “Plaintiff” or “McVetty’’), bring this putative class action against TomTom North America, Inc. (“TomTom”) for (1) allegedly misleading or deceptive acts in violation of New York’s General Business Law Sections 349 and 350, (2) negligent misrepresentation, (3) fraud, (4) breach of express warranty, and (5) unjust enrichment.' Before the Court is TomTom’s motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) (“Rule 12(b)(6)’). For the following reasons, the Court GRANTS Defendant’s motion. BACKGROUND The facts herein are drawn from Plaintiffs’ Complaint (‘Compl” (ECF No. 1)) and are presumed true for purposes of this motion. I. Plaintiffs’ Allegations TomTom, a California corporation with a principal place of business in New Hampshire (Compl. {| 49), manufactures, distributes, markets, labels and sells portable navigation devices (“Products”) to consumers through third-party retailers, including brick-and-mortar stores and

' Plaintiff has withdrawn the claims under the California consumer protection laws (Opp’n at 5 n.2) and for breach of implied warranty (Opp’n at 1 n.1).

online, and directly from defendant’s website (Id. ¶ 1). “All of the Products are marketed and advertised as coming with Lifetime Maps or Lifetime Maps and Traffic, point-of-sale marketing, retailers’ catalogues, websites and television sales, uniformly and pervasively promotes the Lifetime Maps and/or Traffic Updates.” (Id. ¶ 6.) “The product boxes—the last thing the

consumers see before they purchase the Products—have continuously highlighted the addition of Lifetime Traffic and/or Maps.” (Id. ¶ 7.) Because of rapidly changing technology, consumers are willing to pay a premium for a device that comes with updates. (Id. ¶¶ 8-11.) Accordingly, TomTom’s “represented Lifetime Map and Traffic Updates are an inducement to consumers who would not have paid as much for the navigation devices in the first instance, given they might otherwise expect to require a replacement product after a few years.” (Id. ¶ 12.) The warranty terms for Lifetime Maps on TomTom’s website provide “When you purchase a navigation device or smartphone app which includes Lifetime Maps, you can download 4 or more full updates of your map every year for the lifetime of your product. Lifetime Maps are available without additional charge and for as long as the product is supported.” (Id. ¶ 15.) McVetty

alleges that these terms were not available to customers prior to the time of sale. (Id. ¶ 17.) McVetty further alleges that in the warranty terms, TomTom “self-serving[ly]” defined “lifetime” as “the useful life of the device” or “the period of time that TomTom continues to support [a] device with software updates, services, content or accessories.” (Id. ¶ 19.) In January 2018, TomTom announced that, due to technological limitations, certain devices—not including those with Lifetime Maps—will not be able to renew maps or services or receive software updates and, though the device will continue to function, the map will become out-of-date such that navigation will be less accurate, and, under a heading of “Replacement Offer” consumers may consider purchasing a replacement device using a “rebate” (the “January 2018 Announcement”). (Id. ¶¶ 14, 27.) McVetty alleges that an affected device’s capacity to continue to receive updates is “entirely dependent upon the prior updates distributed by defendant to consumers” and that “most

or all of the affected devices have the capability to accept an SD card, which can apply updated map and traffic data to the devices, without utilizing any memory of the devices themselves.” (Id. ¶¶ 22-23.) He further alleges that “defendant’s probable explanation for ‘sunsetting’ the relevant devices is to promote the sale of new devices under the guise of a ‘Replacement Offer.’” (Id. ¶ 24.) McVetty, a citizen of Westchester County, New York (Id.¶ 43), alleges that he purchased one of TomTom’s Products based upon the representations on the packaging using the word “Lifetime.” (Id. ¶ 47.) He further alleges that he paid a premium for said Product “because prior to purchase, plaintiff saw and relied on the misleading representations” and he “would consider purchasing the Products again if there were assurances that the Products’ representations were no longer misleading.” (Id. ¶¶ 51-52.) McVetty admits that his Products “remain functional yet are

denied traffic and map updates, due to defendant’s failures to promptly perform standard troubleshooting and repairs, caused by inherent defective qualities of the Products.” (Id. ¶ 48.) The John and Jane Doe plaintiffs are citizens of 49 U.S. states other than New York who, like McVetty, purchased TomTom Products based on alleged misrepresentations on the packaging. (Id. ¶¶ 44, 47, 50.) The proposed classes are all consumers in New York, Idaho, Ohio, Massachusetts, Kentucky, California, who purchased any Products containing the actionable representations during the statutes of limitation. (Id. ¶ 53.) In short, McVetty alleges that he and other class members purchased Products based on representations on the packaging indicating that the Products came with “Lifetime Maps” and that TomTom created its own definition of “Lifetime” that was not disclosed on the packaging and appears only in a warranty on TomTom’s website to which consumers did not have access prior to purchase and therefore the use of the term “Lifetime” on packaging upon which consumers relied was misleading, deceptive and/or fraudulent.

II. Procedural History McVetty filed this action on May 25, 2019. (ECF No. 1.) The Court waived the pre-motion conference requirement and granted TomTom leave to file its motion to dismiss. (ECF No. 13.) That motion is now before the Court. (ECF No. 15.) LEGAL STANDARD Under Rule12(b)(6), a court must determine whether the complaint “contain[s] sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). The Court must take all material factual allegations as true and draw reasonable inferences in the non-moving party’s favor, but the Court is “not bound to accept as true a legal conclusion couched as a factual allegation,” or to credit “mere conclusory statements” or “[t]hreadbare recitals of the

elements of a cause of action.” Id. (quoting Twombly, 550 U.S. at 555). A claim is facially plausible when the factual content pleaded allows a court “to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. at 678. Generally, “[i]n adjudicating a Rule 12(b)(6) motion, a district court must confine its consideration to facts stated on the face of the complaint, in documents appended to the complaint or incorporated in the complaint by reference, and to matters of which judicial notice may be taken.” Leonard F. v. Isr. Disc. Bank of N.Y., 199 F.3d 99, 107 (2d Cir. 1999) (internal quotation marks and citation omitted). DISCUSSION2

I.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Fink v. Time Warner Cable
714 F.3d 739 (Second Circuit, 2013)
Goshen v. Mutual Life Insurance
774 N.E.2d 1190 (New York Court of Appeals, 2002)
Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N. A.
647 N.E.2d 741 (New York Court of Appeals, 1995)
J.A.O. Acquisition Corp. v. Stavitsky
863 N.E.2d 585 (New York Court of Appeals, 2007)
Kimmell v. Schaefer
675 N.E.2d 450 (New York Court of Appeals, 1996)
Ovitz v. Bloomberg L.P.
967 N.E.2d 1170 (New York Court of Appeals, 2012)
Egan v. Telomerase Activation Sciences, Inc.
127 A.D.3d 653 (Appellate Division of the Supreme Court of New York, 2015)
Mandarin Trading Ltd. v. Wildenstein
944 N.E.2d 1104 (New York Court of Appeals, 2011)
Guggenheimer v. Ginzburg
372 N.E.2d 17 (New York Court of Appeals, 1977)
Gale v. International Business Machines Corp.
9 A.D.3d 446 (Appellate Division of the Supreme Court of New York, 2004)
Ovitz v. Bloomberg L.P.
77 A.D.3d 515 (Appellate Division of the Supreme Court of New York, 2010)
Mills v. Polar Molecular Corp.
12 F.3d 1170 (Second Circuit, 1993)
In re Sling Media Slingbox Advertising Litigation
202 F. Supp. 3d 352 (S.D. New York, 2016)
Greene v. Gerber Products Co.
262 F. Supp. 3d 38 (E.D. New York, 2017)
Wright v. Publishers Clearing House, Inc.
372 F. Supp. 3d 61 (E.D. New York, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
McVetty v. TomTom North America, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcvetty-v-tomtom-north-america-inc-nysd-2021.