Miller v. Ghirardelli Chocolate Co.

912 F. Supp. 2d 861, 2012 WL 6096593, 2012 U.S. Dist. LEXIS 174008
District Court, N.D. California·Decided December 7, 2012·No. No. C 12-04936 LB·Published·Cited by 48 cases

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS

LAUREL BEELER, United States Magistrate Judge.

INTRODUCTION

Plaintiff 'Scott Miller . bought a package of “Ghirardelli Chocolate Premium Baking Chips Classic White” and then — on behalf of himself and other consumers — sued Ghirardelli Chocolate, complaining that this and four other Ghirardelli Chocolate products were marketed as “White” or “White Chocolate Flavored” when they did not contain any white chocolate, in.violation of the following state laws: (1) the Consumer Legal Remedies Act, Cal. Civ.Code § 1750 et seq.; (2) the False Advertising Law, Cal. Bus. & Prof.Code § 17500 et seq.; (3) common-law fraud; and (4) the Unfair Competition Law, Cal. Bus., & Prof.Code § 17200. Ghirardelli moves to dismiss, arguing that Miller does not have standing regarding the four products he never purchased, other claims are preempted by federal regulations, his false advertising claims concerning several products are insufficiently [864] pleaded, and he fails to state a fraud claim about any products.

The court GRANTS the motion on the ground that Miller lacks standing to challenge the four products he did not buy and DENIES Ghirardelli’s motion otherwise. Plaintiff may file an amended complaint in 21 days.

STATEMENT

I.BACKGROUND ALLEGATIONS

Ghirardelli Chocolate is a California corporation that manufactures and markets premium chocolate products and non-chocolate products. Complaint, ECF No. 1, ¶¶ 3, 15, 17.1 Scott Miller is an individual who resides in Auburndale, Florida. Id. ¶ 2. Miller accuses Ghirardelli Chocolate of misleading consumers regarding whether several of its products contain white chocolate.

On June 24, 2012, Miller wanted to buy white chocolate chips and ultimately bought Ghirardelli Chocolate’s Premium Baking Chips — Classic White” (“baking chips”). Id. ¶ 47. In deciding which product to purchase, Miller reviewed the product packaging to satisfy himself that he was buying white chocolate. Id. ¶ 48. The next day, Miller tasted the baking chips and thought that they did not taste like white chocolate. Id. He reviewed the ingredients list on the packaging and noticed that the white chips contained no white chocolate, cocoa, or cocoa butter. Id. ¶ 49.

“Webster’s Dictionary defines ‘white chocolate’ as ‘a confection of cocoa butter, sugar, milk solids, lecithin, and flavorings.’ ” Id. ¶ 21. Miller also alleges that United States Food and Drug Administration (“FDA”) regulations provide more technical definitions of “white chocolate” and “white chocolate flavor.” Id. ¶ 22. Miller explains that the FDA regulations require products labeled as “white chocolate” to contain a minimum of 20 percent cocoa butter. Id. Other FDA regulations mandate that “a product may cannot be called ‘white chocolate flavored’ unless it has some natural derivative of cocoa butter or cacao fat.” Id. ¶ 23.

Miller claims that he would not have purchased the baking chips or would have paid less for them but for Ghirardelli Chocolate’s allegedly misrepresenting (by omission and commission) their white chocolate content. Id. ¶ 50.

In this lawsuit, Miller alleges that Ghirardelli Chocolate misrepresented the white chocolate content of five products (collectively, the “Products”):

1. Premium Baking Chips — Classic White (“baking chips”);
2. White Chocolate Flavored Confectionary Coating Wafers (“wafers”);
3. Sweet Ground White Chocolate Flavor (“white chocolate flavor”);
4. Premium Hot Beverage — White Mocha (“mocha mix”);
5. Frappé Classico — Classic White (“frappe”).

Id. ¶ 19.

II. THE ALLEGED MISREPRESENTATIONS

Miller alleges that Ghirardelli makes a number of actionable misrepresentations about the Products, both individually and collectively.

A. Premium Baking Chips — Classic White

Miller alleges that the baking chips packaging refers to the product as “Classic White,” and “Premium,” which misleads consumers into believing the baking chips [865] contain classic or premium white chocolate. Id. ¶ 24. The packaging also states:

The luxuriously deep flavor and smooth texture of Ghirardelli Premium Baking Chocolate delivers the ultimate chocolate indulgence. We hand-select the world’s finest cocoa beans and roast them to perfection and then blend the purest ingredients to achieve our award-winning chocolate. For our Classic White Baking Chips, pure vanilla and whole milk powder combine to create rich, melt-in-your-mouth bliss. Experience the Ghirardelli difference:
• All Natural ingredients
• Luxuriously smooth and creamy
• Finest grind for smoothest texture and easiest melting.

Id.; Saunders Decl. Supp. Motion to Dismiss, ECF No. 9 ¶¶ 3-4; id. Ex. A, ECF No. 9-1 at 3; id. Ex. B, ECF No. 9-2.2 This “romance language” (as Ghirardelli refers to it) is allegedly misleading because it suggests that the packaging contents are white chocolate and because identical language appears on another product that does contain white chocolate — the Ghirardelli® Chocolate Premium Baking Bar. FAC ¶24. Miller claims that consumers viewing both products are likely to incorrectly assume that they both contain white chocolate. Id. ¶ 25.

B. White Chocolate Flavored Confectionary Coating Wafers

The packaging for the wafers allegedly misleads by referring to the wafers as “White Chocolate Flavored Cohfectionary Coating Wafers,” though the wafers are not flavored with white chocolate and contain no cocoa butter or cacao fat. Id. ¶ 26. In addition, this language is allegedly misleading because a chocolate product — Ghirardelli® Chocolate Double Chocolate Flavored Confectionary Coating Wafers — uses a similar label. Because the two products are likely to be shelved'near each other and are marketed for the same price, consumers may be misled to believe that both contain chocolate. Id. ¶ 27.

C. Sweet Ground White Chocolate Flavor

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Miller v. Ghirardelli Chocolate Co., 912 F. Supp. 2d 861, 2012 WL 6096593, 2012 U.S. Dist. LEXIS 174008 (N.D. Cal. 2012).

912 F. Supp. 2d 861 (Miller v. Ghirardelli Chocolate Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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