Mitchell v. Whole Foods Market Group, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 4, 2022
Docket1:20-cv-08496
StatusUnknown

This text of Mitchell v. Whole Foods Market Group, Inc. (Mitchell v. Whole Foods Market Group, 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
Mitchell v. Whole Foods Market Group, Inc., (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK MANDELL MITCHELL, individually and on behalf of all others similarly situated, Plaintiff, OPINION & ORDER – against – 20 Civ. 8496 (ER) WHOLE FOODS MARKET GROUP, INC., Defendant. RAMOS, D.J.: Mandell Mitchell brings this putative class action against Whole Foods Market Group, Inc. (“Whole Foods” or “the Company”), alleging that the representations regarding chocolate on the label of the Company’s ice cream bars are misleading, because the bars’ coating contains vegetable oil. Mitchell seeks injunctive relief and monetary damages for: (1) violations of Sections 349 and 350 of the New York General Business Law (“GBL”), which prohibit deceptive business practices and false advertising; (2) breach of express warranty; (3) breach of the implied warranty of merchantability; (4) violation of the Magnuson Moss Warranty Act, 15 U.S.C. §§ 2301, et seq. (“MMWA”); (5) fraud; and (6) unjust enrichment. Mitchell files this action on behalf of a putative class of similarly situated individuals. Before the Court is Whole Foods’ motion to dismiss the Second Amended Complaint (“SAC”) pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted.1 For the reasons set forth below, the motion to dismiss is GRANTED.

1 Unless otherwise noted, citations to “¶ _” refer to Mitchell’s Second Amended Complaint (“SAC”), Doc. 20. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY A. Factual Background Whole Foods is a Delaware corporation with a principal place of business in Austin, Texas. 9 65, 70. It operates over 500 high-end grocery stores, which sell premium and organic groceries. § 71. Whole Foods manufactures and sells the Company’s 365 Everyday Value Organic Chocolate & Almond Vanilla Ice Cream Bars (the “Product”). [ff 1, 72. In 2019 and 2020, Mitchell, a citizen of Bronx County, New York, purchased the Product at Whole Foods stores, including the location at 4 Union Square S, New York, NY 10003. □□□ 73. The Product consists of “chocolate & almond vanilla ice cream bars.” § 1. The representations on the front label state that the Product is “dipped in organic chocolate” and possesses a “decadent chocolate coating.” /d. Photos of the Product’s label and its ingredient list, as included in the SAC, are below.

‘cs ee _ fee By te INGREDIENTS: ORGANIC ICE CREAM: PASTEURIZED =. ORGANIC MILK, PASTEURIZED ORGANIC CREAM ORGANIC CANE SUGAR, ORGANIC SUGARED EGG YOLKS ee (ORGANI EGG YOLKS, ORGANIC CANE SUGAR) ORGANI & Almon VANILLA EXTRACT, ORGANIC LOCUST BEAN GUM, ‘iki cies ceed alae ORGANIC GUAR GUM. ORGANIC CHOCOLATE: ORGANIC esac castolad ccges cuaeeagaa CANE SUGAR, ORGANIC CHOCOLATE LIQUOR, ORGANIC ae ie EXPELLER PRESSED PALM KERNEL OIL, ORGANIC COCOA be peek we BUTTER, ORGANIC DRY ROASTED ALMONDS, ORGANIC wisi J a, WHOLE MILK POWDER, ORGANIC SOY LECITHIN (EMULSIFIER), ORGANIC VANILLA EXTRACT 3-37.02 @5mi BRS me « NET 9 FL OZ (26?7mL) I AP FROM Mitchell alleges that these representations are misleading because the chocolate coating contains ingredients not found in “real chocolate,” such as pressed palm kernel oil, which is

identified in the ingredient list on the back label of the Product. ¶¶ 45–51. With respect to the Product’s front label, Mitchell alleges that it “creates no ambiguity about the Product’s chocolate content,” through the use of statements such as “chocolate,” “dipped in organic chocolate,” and “decadent chocolate coating,” and that he understood the word, “decadent,” to refer to the

chocolate’s richness. ¶¶ 56, 75. With respect to the ingredient list, Mitchell argues that consumers of a premium ice cream bar will not examine the fine print of the ingredient list in order to confirm that the front label is accurate. ¶ 52; see also ¶ 76. �e Product is sold at a “premium price,” approximately $5.49 for three bars. ¶ 62. Mitchell contends that as a result of the misrepresentations, Whole Foods sold a higher quantity of the Product and at a higher price. ¶ 59. Mitchell further alleges that he, as well as the proposed class members, would not have bought the Product or would have paid less for it if they had known the truth. ¶¶ 60–61, 77–78. Mitchell alleges that he intends to purchase the Product again when he can do so with the assurance that the representations about its ingredients are consistent with its labeling. ¶ 79.

B. Procedural History Mitchell filed the instant complaint on October 12, 2020. Doc. 1. On March 4, 2021, Whole Foods requested a pre-motion conference to discuss its anticipated motion to dismiss the complaint under Rule 12(b) on the following grounds, among others: (1) Mitchell’s claims are preempted; (2) the Product’s labeling is not plausibly deceptive under Sections 349 and 350 of the GBL because the Product contains chocolate, and the mere presence of other ingredients in addition to chocolate does not render the label false or misleading; (3) he lacks standing to seek injunctive relief; (4) the complaint fails to state a claim for fraud because he has not alleged facts that give rise to a strong inference of fraudulent intent; (5) his claim for express warranty fails because he did not provide notice of the alleged breach; (6) his implied warranty of merchantability and MMWA claims fail because he does not allege that the Product was not merchantable; and (7) his unjust enrichment claim fails as duplicative of his other claims. Doc. 9. On March 9, Mitchell responded to Whole Foods’ letter, noting that he intended to file an

amended complaint. Doc. 11. Mitchell filed the First Amended Complaint (“FAC”) on May 6. Doc. 14. On May 27, Whole Foods again requested leave to move to dismiss the FAC under Rule 12(b) on the same grounds. Doc. 15. A pre-motion conference was held before the Court on July 13. �e Court directed Mitchell to file the SAC, and granted Whole Foods leave to move to dismiss the SAC. Mitchell filed the SAC on July 20. Doc. 20. Whole Foods moves to dismiss the SAC under Rules 9(b) and 12(b)(6). II. LEGAL STANDARD Under Rule 12(b)(6), a complaint may be dismissed for failure to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). When ruling on a motion to dismiss pursuant to Rule 12(b)(6), the Court must accept all factual allegations in the complaint as true

and draw all reasonable inferences in the plaintiff’s favor. Koch v. Christie’s Int’l, PLC, 699 F.3d 141, 145 (2d Cir. 2012). However, the Court is not required to credit “mere conclusory statements” or “threadbare recitals of the elements of a cause of action.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). “To survive a motion to dismiss, a complaint must contain sufficient factual matter . . . to ‘state a claim to relief that is plausible on its face.’” Id. (quoting Twombly, 550 U.S. at 570). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). Federal Rule of Civil Procedure

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Bluebook (online)
Mitchell v. Whole Foods Market Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-whole-foods-market-group-inc-nysd-2022.