Rawson v. ALDI Inc

CourtDistrict Court, N.D. Illinois
DecidedMay 17, 2022
Docket1:21-cv-02811
StatusUnknown

This text of Rawson v. ALDI Inc (Rawson v. ALDI Inc) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rawson v. ALDI Inc, (N.D. Ill. 2022).

Opinion

THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

JESSICA RAWSON, on behalf of ) herself and all others similar situated, ) ) No. 21-cv-2811 Plaintiff, ) ) Judge Jorge L. Alonso v. ) ) ALDI, Inc., ) ) Defendant. )

Memorandum Opinion and Order This proposed class action centers around Plaintiff Jessica Rawson’s allegations that Defendant ALDI, Inc. falsely and deceptively markets its Atlantic Salmon products as sustainably sourced. Defendants have filed a motion to dismiss [27]. For the reasons set forth below, the Court grants in part and denies in part Defendants’ motion. Background The Court takes the below facts from the complaint. ALDI is a national food retailer in the United States with over 2,000 stores across the country. Rawson, a citizen of New York, alleges that at least once a month for the last four years, she bought Atlantic Salmon products from ALDI with the label: “Simple. Sustainable. Seafood.” An image of the label is copied below: = TE aes is

SIMPLE. sua

Rawson alleges that, despite this label, ALDI does not sustainably source its Atlantic Salmon products. Rather, ALDI sources its salmon from large industrial fish farms that use environmentally destructive and unsustainable practices. For instance, Rawson alleges that ALDI gets its salmon, at least in part, from fish farms in Chile that use net pen aquaculture that crowds thousands of fish into cages or “pens” in natural waterways. Rawson contends that this method 1s a “high risk” form of fish farming because, among other things, it “allow[s] free exchange of waste, chemicals, parasites and disease” between the pens and the surrounding environment. [1] at 426. Rawson also asserts that, along with net pens, ALDI’s Atlantic Salmon products use ethoxyquin, a preservative in fish feed, which also poses a risk for aquatic life. Rawson further alleges that ALDI’s suppliers use of wild-caught salmon in salmon feed adds to the collapse of wild fish stock and the aquatic ecosystem. In sum, Rawson claims that these practices make ALDI’s Atlantic Salmon products unsustainable. Rawson alleges that she bought ALDI’s Atlantic Salmon products based on the sustainable label and agreed to pay a premium to purchase sustainable salmon products. She brings claims under New York General Business Law §349 (deceptive acts), $350 (false advertising), violation of 33 other state consumer protection statutes, breach of express warranty, and unjust enrichment. Her complaint also requests injunctive relief enjoining ALDI from

unlawful and deceptive practices. She seeks to brings these claims individually and on behalf of a proposed class under Fed. R. Civ. P. 23. ALDI has filed a motion to dismiss Rawson’s complaint [27]. Global Seafood Alliance has filed a motion for leave to file an amicus brief in support of ALDI’s motion to dismiss [31].

Legal Standard The Court may dismiss a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure if the plaintiff fails “to state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). To meet federal notice-pleading standards, a complaint must “give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). A

complaint need not provide detailed factual allegations, but mere legal conclusions and a “formulaic recitation of the elements of a cause of action” will not suffice. Twombly, 550 U.S. at 555. In considering a motion to dismiss, the Court accepts as true the factual allegations in the complaint and draws permissible inferences in favor of the plaintiff. Boucher v. Finance Syst. of Green Bay, Inc., 880 F.3d 362, 365 (7th Cir. 2018). Discussion

I. New York General Business Law § 349 and § 350 ALDI first seeks dismissal of Rawson’s New York General Business Law claims (counts I and II). Rawson, a New York resident who purchased ALDI salmon in New York, asserts claims under the New York General Business Law. The parties do not dispute that New York law applies. Rawson brings two claims under sections 349 and 350 of the New York General Business Law statute. Section 349 prohibits “[d]eceptive acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service in [New York][].” N.Y. Gen. Bus. Law § 349(a). Similarly, section 350 prohibits “[f]alse advertising in the conduct of any business, trade

or commerce or in the furnishing of any service in [New York][].” Id. § 350. “To successfully assert a claim under either section, ‘a plaintiff must allege that a defendant has engaged in (1) consumer-oriented conduct that is (2) materially misleading and that (3) plaintiff suffered injury as a result of the allegedly deceptive act or practice.’” Orlander v. Staples, Inc., 802 F.3d 289, 300 (2d Cir. 2015) (quoting Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 941, 967 N.E.2d 675, 675 (2012)). ALDI challenges the latter two elements. ALDI argues that Rawson’s claims fail because (1) its label is not misleading when read in context with the product’s “Best Aquaculture Practices” (“BAP”) certification label, (2) the consumer perception publications Rawson cites say nothing about ALDI’s label, (3) its label constitutes non-actionable puffery, and (4) Rawson fails to allege a cognizable injury. The Court

addresses each argument in turn. First, ALDI’s salmon product bears not only the “sustainable” label to which Rawson objects; it is also labeled as “BAP certified.” The latter designation reflects that the product has been certified as sourced in accordance with the best aquaculture practices by an independent third-party, Global Seafood Alliance (“GSA”). GSA is an international non-profit trade association dedicated to advancing environmentally and socially responsible aquaculture. ALDI argues that its label is not misleading when the “sustainable” designation is read with the “BAP certified” designation. The Court finds that Rawson’s claim is at least plausible, the “BAP certified” designation notwithstanding. For starters, the labels are not next to one another; an unrelated white graphic separates the two. Thus, the Court agrees with Rawson that a reasonable consumer viewing this packaging might very well fail to connect the BAP certification label—appearing in an enclosed

blue graphic and stating “BAP Certified” with a fish logo next to it—with ALDI’s sustainable representation contained in a separate white graphic. Not only are the labels separated by color design, but also by space on the package. Along that same line, a reasonable consumer might not know what the BAP label means, much less know how it relates to ALDI’s claim of sustainability. Nor does the BAP label clarify ALDI’s sustainable representation. Again, the labels’ physical attributes are distinguishable. Moreover, unlike the cases ALDI cites, the labels’ text does not suggest or indicate that they are in any way connected. Cf. Kommer v. Bayer Consumer Health, 252 F. Supp.

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Rawson v. ALDI Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rawson-v-aldi-inc-ilnd-2022.