Nemet Chevrolet, Ltd. v. Consumeraffairs. Com, Inc.

564 F. Supp. 2d 544, 2008 U.S. Dist. LEXIS 59953, 2008 WL 2557380
CourtDistrict Court, E.D. Virginia
DecidedJune 18, 2008
Docket1:08cv254 (GBL)
StatusPublished
Cited by11 cases

This text of 564 F. Supp. 2d 544 (Nemet Chevrolet, Ltd. v. Consumeraffairs. Com, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nemet Chevrolet, Ltd. v. Consumeraffairs. Com, Inc., 564 F. Supp. 2d 544, 2008 U.S. Dist. LEXIS 59953, 2008 WL 2557380 (E.D. Va. 2008).

Opinion

MEMORANDUM ORDER

GERALD BRUCE LEE, District Judge.

THIS MATTER is before the Court on Defendant Consumeraffairs.com Inc.’s Motion to Dismiss or Strike Complaint. This case concerns negative reviews posted by consumers on Defendant’s website concerning Plaintiffs, Nemet Chevrolet, Ltd. and Thomas Nemet D/B/A Nemet Motors. Plaintiffs take issue with the veracity of the information posted on Defendant’s website, and seek to hold Defendant liable for defamation, tortious interference with a business expectancy and multiple violations of the Lanham Act. There are five issues before the Court. The first issue is whether immunity under the Communications Decency Act may be considered by the Court on a 12(b)(6) motion, and if so, whether Defendant is immune under the CDA Plaintiffs claims for defamation and tortious interference with contract. The second issue is whether Plaintiffs’ request for punitive damages on Counts I and II in excess of the applicable statutory cap bars these claims. The third issue is whether Plaintiffs have standing to bring their claims under the Lanham Act. The fourth issue is whether Plaintiffs have pled that Defendant has used an imitation of Plaintiffs’ mark that is likely to cause confusion among consumers, as required to state a claim of unfair competition under § 43(a)(1)(A) of the Lanham Act. The fifth issue is whether Plaintiffs have properly stated a false advertising claim against Defendant under § 43(a)(1)(B) of the Lan-ham Act. The Court holds that it may consider immunity under the CDA on a 12(b)(6) motion because the facts necessary for such a determination are apparent from the face of the Complaint, and because the CDA prevents Plaintiffs from establishing a set of facts that would entitle them to relief. Furthermore, the Court holds that Defendant is entitled to immunity under the CDA because it is a provide of an interactive computer service, the postings at issue in the Complaint were provided by a separate information content provider, and Plaintiffs’ claims seek to treat Defendant as a publisher of the third party content at issue. With respect to the second issue, the Court finds that while it could strike the ad *547 damnum portion of the claims at issue, that ad damnum serves no practical purpose in a contested case such as this, and it is unnecessary to address the issue further because the Court will strike the claims at issue on other grounds. The Court also finds that under any approach used by the various circuits, that Plaintiffs do not have standing to bring their claims under the Lanham Act because Plaintiffs are not competitors of Defendant, and Plaintiffs have not alleged the sort of injury that the Lanham Act sought to protect against. Alternatively, if the Court were to find that Plaintiffs had standing to bring their claims under the Lanham Act, the Court grants the Defendant’s Motion to Dismiss the counts brought under sections 43(a)(1)(A) and (B) of the Act because the two parties’ goods are unrelated as a matter of law and because the parties are not in commercial competition and it could not possibly be alleged that the statements at issue were made for the purpose of influencing consumers to buy Defendant’s goods or services instead of Plaintiffs’.

I. BACKGROUND

Defendant consumeraffairs.com operates a website through which third-party consumers post reviews of retail buying experiences with merchants and exchange information about their experiences buying products or services from particular companies. Nemet Chevrolet is a group of franchised automotive dealers who sell cars in the New York area. Several consumer reviews posted on Defendant’s website complain about individual experiences at Nemet Chevrolet. Plaintiffs’ Complaint includes the text of six consumer postings, and Plaintiffs identify the poster responsible for the information contained in all but one of the postings. Plaintiffs attempt to rebut the complaints lodged in each posting in the text of their Complaint. The following counts are alleged in the Complaint: I) defamation; II) tortious interference with a business expectancy; III) violation of § 43(a)(1)(A) of the Lanham Act; and IV) violation of § 43(a)(1)(B) of the Lanham Act. Plaintiffs claim that Defendant’s publication of the statements on its website “discredited Plaintiffs honesty, credit and business reputation.” (ComplJ 39). With respect to the claim for tortious interference, Plaintiff alleges that “Defendant’s false and misleading articles caused potential Nemet customers not to contract with Plaintiffs, resulting in monetary damages to Plaintiff.” (Comply 45). Plaintiffs assert that Defendant has violated § 43(a)(1)(A) of the Lan-ham Act by operating “in commerce under the guise of ‘consumer affairs’ for the purpose of unlawfully diverting customers and deriving a profit from misdirecting said customers” and consumers are likely to incorrectly believe that Defendant is affiliated with a state, federal or other organization. (Comply 47, 48). With respect to the alleged violation of § 43(a)(1)(B) of the Lanham Act, Plaintiffs state that Defendant’s use of the name “consumer affairs” misrepresents the nature and/or quality of its services and that this misrepresentation is likely to “influence the purchasing decision and deceive customers.” (Comply 52, 53).

II. DISCUSSION

A. Standard of Review

In a recent decision, the Supreme Court held that a Federal Rule of Civil Procedure 12(b)(6) motion should be granted unless an adequately stated claim is “supported by showing any set of facts consistent with the allegations in the complaint.” Bell Atlantic Corp. v. Twombly, — U.S. -, -, 127 S.Ct. 1955, 1969, 167 L.Ed.2d 929 (2007); see Fed.R.Civ.P. 12(b)(6). In considering a Rule 12(b)(6) *548 motion, the Court must construe the complaint in the light most favorable to the plaintiff, read the complaint as a whole, and take the facts asserted therein as true. Mylan Labs., Inc. v. Matkari, 7 F.3d 1130, 1134 (4th Cir.1993). In addition to the complaint, the court may also examine “documents incorporated into the complaint by reference, and matters of which a court may take judicial notice” when ruling on a Rule 12(b)(6) motion to dismiss. Tellabs, Inc. v. Makor Issues & Rights, Ltd., — U.S. -, -, 127 S.Ct. 2499, 2509, 168 L.Ed.2d 179 (2007). Conclusory allegations regarding the legal effect of the facts alleged need not be accepted. See Labram v. Havel, 43 F.3d 918, 921 (4th Cir.1995). Because the central purpose of the complaint is to provide the defendant “fair notice of what the plaintiffs claim is and the grounds upon which it rests,” the plaintiffs legal allegations must be supported by some factual basis sufficient to allow the defendant to prepare a fair response. Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957).

B. Analysis

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

Related

BRINK v. XE HOLDING, LLC
E.D. Virginia, 2024
Jones v. Twitter, Inc.
D. Maryland, 2020
McDonald v. LG Electronics USA, Inc.
219 F. Supp. 3d 533 (D. Maryland, 2016)
Enigma Software Group USA, LLC v. Bleeping Computer LLC
194 F. Supp. 3d 263 (S.D. New York, 2016)
Okeke v. Cars.com
40 Misc. 3d 582 (Civil Court of the City of New York, 2013)
Klayman v. Zuckerberg
910 F. Supp. 2d 314 (District of Columbia, 2012)
Parisi v. Sinclair
774 F. Supp. 2d 310 (District of Columbia, 2011)
Goddard v. Google, Inc.
640 F. Supp. 2d 1193 (N.D. California, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
564 F. Supp. 2d 544, 2008 U.S. Dist. LEXIS 59953, 2008 WL 2557380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nemet-chevrolet-ltd-v-consumeraffairs-com-inc-vaed-2008.