Steinberg v. Icelandic Provisions, Inc.

District Court, N.D. California·Decided January 25, 2022·No. 3:21-cv-05568·Unknown

Opinion

RIVKA STEINBERG, Case No. 21-cv-05568-EMC

Plaintiff, ORDER GRANTING DEFENDANT’S v. MOTION TO DISMISS

ICELANDIC PROVISIONS, INC., Docket No. 21 Defendant.

Plaintiff Rivka Steinberg (“Steinberg”) filed this action against Defendant Icelandic Provisions, Inc. (“Icelandic Provisions”) individually and on behalf of all others similarly situated. See Docket No. 1 (“Complaint or Compl.”). Steinberg alleges that Icelandic Provisions’s label on its Skyr product, a traditional Icelandic cultured dairy product (“Product”) misrepresents that the Product is made in Iceland and therefore violates California’s consumer protection statutes. Id. Pending before the Court is Icelandic Provisions’s motion to dismiss Steinberg’s Complaint. See Docket No. 21 (“Mot.”). For the following reasons, the Court GRANTS Icelandic Provisions’s motion to dismiss with prejudice. A. Factual History Icelandic Provisions manufactures and distributes Skyr (the “Product”) in the United States. The Product is an “Icelandic cultured dairy product” with “the consistency of Greek yogurt, but a milder flavor.” Compl. ¶¶ 1, 2, 49; Mot. at 2. The packaging on the front of the Product states, “Traditional Icelandic Skyr” and “Icelandic Provisions” and has an image of a 1 Product is below: 2 3 _oowions! Teelangy, 4 Z Skyr ICELANDIC 6 te «39 PROVISIONS" \ 7 Ae Plain 8 BO 17g | 5g | 15% PROTEIN | SUGAR | MILK FAT 9 NET OL (150 6)

11 Id. Steinberg points out that over a dozen other competing Icelandic skyr products accurately 12 |) label their products as “Icelandic style,” unlike the Product here. Id. | 13, 20-24.

On the back of the Product, in the same-size font, the packaging states, “Distributed by

14 Icelandic Provisions, New York, NY,” “Developed in partnership with MS Iceland Dairies, Reykjavik, ISL,” and “Proudly made in Batavia, NY with domestic and imported ingredients.” Id. A 16 || 9437, 49. An image of the back panel of the Product is below:

17 = ; a □□

— — = Z 18 = Sir ued Low Fet tk UTRITION FACTS Live and Active Cuttures), Strawberries, Cane □□ 19 Serving Size | Container (150g) Sugar, ingonberries, Pectin, Natural Flavors, DN. i lanwaae sean nit and Vegetable Juice 5, 20 SY calories 80 Galovestromfat PY orcrmpurepay | Yeh i 8 % Daily Va f Icelandic Provisions, New Vork, NY 21 \ TotalFat I IMA Oevonedinoastneship wh 0 gq 0) Succ i 8 JransFatg | IVE AND ACTIVE CULTURES: Heitloom 73 Wy Cholesteral 20mz 3% | Skyr Cultures (Streptococcus Thermophilus I Sodium Gmg_=SSSCSC eae mer ee h = ENUM, 24 LQ) @ (inelcinsate — | cocina i 4 e Dietary Fiber Og 0% | heliofai pla Dis ouny Ij0N5.£0 25 5"? Total Sugars Tig eee 08 Sk Pet el oe red 26 Vitamin A 0% Marin C4 | Wp eet © @ calcium 14% fron 0 | that agiee tonot use GH.” 27 A © | -Peent ay Vales (00) ae based ona | fcteenioaticanneth on Gh reed \ caloeie diet. andnor-B5H treated rows. @p

1 Id. 4 49. The side panel of the Product states that it is “made with original Skyr cultures,” “was 2 developed with Iceland’s oldest farmer-owned dairy,” and “is the only Skyr available in the US 3 that contains Icelandic Heirloom Skyr Cultures that Icelanders have been enjoying for centuries.” 4 Id. 439. An image of the side panel is below: 5 6 . = la \\ 7 A \\

8 Skyr 9 * Protein packed Skyr (“skeer”) has been G 10 a provision of Icelanders for nearly 1,000 1 years. Our Skyr was developed with Iceland's oldest farmer-owned dairy. 12 it is the only Skyr available in the US that 2B Contains Icelandic Heirloom Skyr Cultures that Icelanders have been enjoying for 14 centuries, Our heirloom cultures help make 45 our Skyr thick, creamy and delicious. &

A 16 | id. 4/39. Steinberg does not dispute that the Product is “made with original Skyr cultures” or that

17 the Product “was developed with Iceland’s oldest farmer-owned dairy.” See id. 49-50. And

18 || there is no dispute that the Product is not made in Iceland but in Batavia, New York. Id. 4 49. 19 She alleges, however, that California consumers “expect[] that the Product is made with 20 ingredients from Iceland, beyond just the starter cultures identified on the label.” Jd. 65. For 21 example, according to Steinberg, consumers “expect Defendant’s Icelandic skyr Product to be 22 made in Iceland and contain the unique characteristics of skyr made there.” Id. 429. She 23 contends, “Authentic skyr contains unique probiotics, a result of the hardy Icelandic dairy cows 24 that produce the milk used as the raw material,” which has “less lactose (sugar),” “a hallmark of 25 authentic Icelandic skyr.” Id. J] 30, 33. Moreover, “[t]raditional skyr production involves a dairy 26 ) centrifuge,” which differs from “Defendant’s alternative method of skyr production” that “relies 27 on ultrafiltration of milk, which concentrates the whey proteins while thickening the skyr.” Jd. 28 9934-35.

At the time of the Complaint, the homepage of Icelandic Provisions’s website stated “Halló [Hello] From Iceland” over an arctic tundra backdrop of Iceland. Id. ¶ 45. But the top of the website also stated that “Icelandic Provisions is the only Skyr made in the US that uses an original Icelandic recipe and heirloom Icelandic Skyr cultures.” See Icelandic Provisions (July 21, 2021), https://web.archive.org/web/20210721033833/https://www.icelandicprovisions.com/ (homepage as it existed on July 21, 2021, preserved by Internet Archive WayBack Machine) (emphasis added).1 Icelandic Provisions also allegedly released a national advertising campaign filmed “on location in the coastal village of Vík,” with Icelandic actors explaining skyr to American consumers. Id. ¶ 46. Steinberg alleges that she understood the representations on the front of the label, the website, and other marketing representations to indicate that the Product is made in Iceland. Id. ¶¶ 70–73. She pleads that “[a]s a result of the false and misleading labeling, the Product is sold at a premium price, approximately no less than $2.79 for a 5.3 oz cup, excluding tax, compared to other similar and allegedly non-misleading products that are sold at a lesser price, an average price of no more than $2.19 for a 5.3 oz cup.” Id. ¶¶ 77–78. Between August and October 2020, Steinberg purchased the Product for personal or household consumption and use. Id. ¶¶ 80–81. She purchased the Product over competing Icelandic skyr products because she believed the Product was made in Iceland, unlike its competitors. Id. ¶¶ 69, 82. Had she known the truth, she allegedly would not have bought the Product, would have paid less for it, or would have purchased one of the numerous, less costly

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

Steinberg v. Icelandic Provisions, Inc., (N.D. Cal. 2022).

Steinberg v. Icelandic Provisions, Inc. (Steinberg v. Icelandic Provisions, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Watters v. Wachovia Bank, N. A.
550 U.S. 1 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
United States v. Gendron
18 F.3d 955 (First Circuit, 1994)
Manzarek v. St. Paul Fire & Marine Insurance
519 F.3d 1025 (Ninth Circuit, 2008)
Williams v. Gerber Products Co.
552 F.3d 934 (Ninth Circuit, 2008)
Boris Levitt v. Yelp! Inc.
765 F.3d 1123 (Ninth Circuit, 2014)
Apple Inc. v. Superior Court of San Diego Cnty.
228 Cal. Rptr. 3d 668 (California Court of Appeals, 5th District, 2018)
Brady v. Bayer Corp.
237 Cal. Rptr. 3d 683 (California Court of Appeals, 5th District, 2018)
Starr v. Baca
652 F.3d 1202 (Ninth Circuit, 2011)
Mantikas ex rel. Situated v. Kellogg Co.
910 F.3d 633 (Second Circuit, 2018)