Sharpe v. A & W Concentrate Company

CourtDistrict Court, E.D. New York
DecidedAugust 24, 2020
Docket1:19-cv-00768
StatusUnknown

This text of Sharpe v. A & W Concentrate Company (Sharpe v. A & W Concentrate Company) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharpe v. A & W Concentrate Company, (E.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------------- X : LASHAWN SHARPE, JIM CASTORO and : CHRISTINE COONEY, individually and on behalf : of all others similarly situated, : MEMORANDUM DECISION : AND ORDER Plaintiffs, : : 19-cv-768 (BMC) - against - : : A&W CONCENTRATE COMPANY and : KEURIG DR PEPPER INC., : : Defendants. -------------------------------------------------------------- X

COGAN, District Judge. This is a putative class action brought under New York’s consumer protection law. Plaintiffs are purchasers of defendants’ root beer and cream soda beverages (collectively “the products”). They allege that defendants have misleadingly stated on the front of the products’ labels that the beverages are “MADE WITH AGED VANILLA,” even though the vanilla flavor comes predominantly – if not exclusively – from an artificial, synthetic ingredient called ethyl vanillin. Plaintiffs claim that consumers interpret defendants’ representation to mean that the characterizing flavoring derives from the vanilla plant, not a cheap inferior substitute for the natural substance. Before me is defendants’ motion to dismiss the complaint under Fed. R. Civ. P. 12(b)(6) on two grounds: (1) that plaintiffs lack standing for injunctive relief; and (2) that a reasonable consumer cannot be misled because the products contain real vanilla and are conspicuously labeled as “Natural and Artificially Flavored.” The motion is granted in part and denied in part. Defendants’ motion to dismiss plaintiffs’ request for injunctive relief for lack of standing is granted. But plaintiffs have adequately alleged that the “MADE WITH AGED VANILLA” representation on the front of defendants’ packaging communicates to the reasonable consumer the false message that the vanilla flavoring comes from real vanilla, when in reality, the product contains no “aged vanilla” whatsoever. The complaint reiterates that, even if the products contain any aged vanilla, “it is in

trace or de minimis amounts not detectable by advanced scientific means.” Therefore, defendants’ misleading message that the drink contains “aged vanilla” is not dispelled by the information that the beverages are “Natural and Artificially Flavored,” which fails to communicate that the quantity of the artificial flavoring far exceeds the quantity of natural vanilla. Because plaintiffs have stated sufficient facts to make out claims of violations under New York General Business Law §§ 349 and 350 and unjust enrichment, defendants’ motion to dismiss those claims is denied. Defendants also seek reconsideration as to sanctions I imposed upon them for needlessly multiplying motion practice. This motion is granted in part, and I will reduce the sanctions imposed to $1000.

SUMMARY OF COMPLAINT To understand this case, one must understand vanilla. Vanilla comes from an orchid plant, which produces a fruit pod, the vanilla bean, from which natural vanilla flavoring is derived. The vanilla bean itself is not consumed. Rather, one must scrape the seed from the pod, infuse it, or extract it by soaking vanilla beans in a solution of ethanol and water. Defendants produce, market, and sell root beer and cream soda soft drinks under the A&W brand. Defendants prominently state “MADE WITH AGED VANILLA” on their products’ labels. The products are sold in different size plastic and glass bottles and aluminum cans: a a a SRR oi —— □□ penr. Saas

juke pee i \ EN eee i | □□ \ WY Wg Al Wa fad Be ‘ i ! | | a eS ae | IY rh ] bh } i ee aT | vy, ) Te Ze Me ei g Yh) | | ve ji) | Z te re Steal ia gn \ \ vane eit! Fle | - OS Vy |e

hi CE LOW S00 i Tre CAFFENE FREE . □ TH il iti □□ ginal RI te ae ore Nutrition Facts Se SLCC) tgs pe cote □ ST, |Site 2c nl A em! a i) me □ \ . |} Cc Calories 170 \ if a i bal ihe i Hf cc Sn Ald IK ® Hf ee a i / Ptekn ey bod I nn Total Carbopieate doy 174 ok Vedas dig il 4 a ey ea MUAL ides iy ed Sagas HY HS ‘ ae ddl hon !!|!StCOC~SW i. * : ; . a bo a Fay sl RISA NAR Eiaucdieradumwa ; A VOLE eT ea inside er a □□□ Hae SU si pa ’ a Of j aie all ee aa co NU □□□ et A WO | ea esc aay |G rr en ieee) 2 (: Ne fA Ua i ‘A WAN)" □□□ nm wna Ig Fer a Se Per =

Plaintiffs purchased defendants’ soft drinks after seeing that the products contained aged vanilla.1 They relied on defendants’ representation about the flavored beverages, believing that a characterizing flavor of the product was vanilla and that any flavor came from the macerating process described above.

Plaintiffs were not the only consumers to believe that the statement “MADE WITH AGED VANILLA” meant that vanilla extract formed the characterizing flavor of the products. In a survey of 411 consumers conducted in March 2020, around 89% of the consumers stated this representation led them to believe that the product was vanilla flavored. These consumers also interpreted the representation to mean that the vanilla flavor came exclusively (if not predominantly) from the natural vanilla – not artificial sources. Specifically, around 68% of surveyed consumers believed that the statement meant that the vanilla flavor “comes from a vanilla plant, such as a vanilla extract, which is made from vanilla beans from the vanilla plant.” Plaintiffs claim this representation is false and misleading, and they allege defendants’ products do not contain any real vanilla at all. Scientific testing of the products by an

independent laboratory revealed that the vanilla flavoring of the products does not come from the vanilla plant. Rather, the opposite is true. Testing disclosed that the predominant, if not exclusive, source of the vanilla flavor derives from an artificial, synthetic ingredient – ethyl vanillin. A cheap and inferior substitute for real vanilla, ethyl vanillin does not come from the vanilla plant. Had plaintiffs known the truth about the origin of the vanilla flavoring, they would not have purchased the product at a premium price. If the products are reformulated such that the vanilla flavor comes exclusively or predominantly from the vanilla plant or the products are no longer deceptively labeled, plaintiff would purchase the drinks again in the future.

1 It is unclear whether plaintiffs purchased the 12-pack, 20-fluid ounce bottle, or a two-liter bottle. DISCUSSION I. Standard of Review In deciding a motion to dismiss under Fed. R. Civ. P. 12(b)(6), I must “constru[e] the complaint liberally, accept[] all factual allegations in the complaint as true, and draw[] all

reasonable inferences in the plaintiff’s favor.” Elias v. Rolling Stone LLC, 872 F.3d 97, 104 (2d Cir. 2017) (quoting Chase Grp. All. LLC v. City of New York Dep't of Fin., 620 F.3d 146, 150 (2d Cir. 2010)). To survive a motion to dismiss, a complaint must include “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “Factual allegations must be enough to raise a right to relief above the speculative level.” Id. at 555. “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). II.

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

Related

City of Los Angeles v. Lyons
461 U.S. 95 (Supreme Court, 1983)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
National Organization for Marriage, Inc. v. Walsh
714 F.3d 682 (Second Circuit, 2013)
Fink v. Time Warner Cable
714 F.3d 739 (Second Circuit, 2013)
Kommer v. Bayer Consumer Health
710 F. App'x 43 (Second Circuit, 2018)
Belfiore v. Procter & Gamble Co.
94 F. Supp. 3d 440 (E.D. New York, 2015)
Buonasera v. Honest Co.
208 F. Supp. 3d 555 (S.D. New York, 2016)
Nelson v. MillerCoors, LLC
246 F. Supp. 3d 666 (E.D. New York, 2017)
Danone, Us, LLC v. Chobani, LLC
362 F. Supp. 3d 109 (S.D. Illinois, 2019)
American Civil Liberties Union v. Clapper
785 F.3d 787 (Second Circuit, 2015)
Nicosia v. Amazon.com, Inc.
834 F.3d 220 (Second Circuit, 2016)
Elias v. Rolling Stone LLC
872 F.3d 97 (Second Circuit, 2017)
Mantikas ex rel. Situated v. Kellogg Co.
910 F.3d 633 (Second Circuit, 2018)
United States v. Jones
320 F. Supp. 578 (W.D. Texas, 1971)
Knipe v. Skinner
999 F.2d 708 (Second Circuit, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
Sharpe v. A & W Concentrate Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharpe-v-a-w-concentrate-company-nyed-2020.