Steinberg v. Icelandic Provisions, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 25, 2022
Docket3:21-cv-05568
StatusUnknown

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

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

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 RIVKA STEINBERG, Case No. 21-cv-05568-EMC

8 Plaintiff, ORDER GRANTING DEFENDANT’S 9 v. MOTION TO DISMISS

10 ICELANDIC PROVISIONS, INC., Docket No. 21 11 Defendant.

12 13 14 Plaintiff Rivka Steinberg (“Steinberg”) filed this action against Defendant Icelandic 15 Provisions, Inc. (“Icelandic Provisions”) individually and on behalf of all others similarly situated. 16 See Docket No. 1 (“Complaint or Compl.”). Steinberg alleges that Icelandic Provisions’s label on 17 its Skyr product, a traditional Icelandic cultured dairy product (“Product”) misrepresents that the 18 Product is made in Iceland and therefore violates California’s consumer protection statutes. Id. 19 Pending before the Court is Icelandic Provisions’s motion to dismiss Steinberg’s Complaint. See 20 Docket No. 21 (“Mot.”). For the following reasons, the Court GRANTS Icelandic Provisions’s 21 motion to dismiss with prejudice. 22 I. BACKGROUND 23 A. Factual History 24 Icelandic Provisions manufactures and distributes Skyr (the “Product”) in the United 25 States. The Product is an “Icelandic cultured dairy product” with “the consistency of Greek 26 yogurt, but a milder flavor.” Compl. ¶¶ 1, 2, 49; Mot. at 2. The packaging on the front of the 27 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

4 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.

1 At the time of the Complaint, the homepage of Icelandic Provisions’s website stated 2 “Halló [Hello] From Iceland” over an arctic tundra backdrop of Iceland. Id. ¶ 45. But the top of 3 the website also stated that “Icelandic Provisions is the only Skyr made in the US that uses an 4 original Icelandic recipe and heirloom Icelandic Skyr cultures.” See Icelandic Provisions (July 21, 5 2021), https://web.archive.org/web/20210721033833/https://www.icelandicprovisions.com/ 6 (homepage as it existed on July 21, 2021, preserved by Internet Archive WayBack Machine) 7 (emphasis added).1 Icelandic Provisions also allegedly released a national advertising campaign 8 filmed “on location in the coastal village of Vík,” with Icelandic actors explaining skyr to 9 American consumers. Id. ¶ 46. 10 Steinberg alleges that she understood the representations on the front of the label, the 11 website, and other marketing representations to indicate that the Product is made in Iceland. Id. 12 ¶¶ 70–73. She pleads that “[a]s a result of the false and misleading labeling, the Product is sold at 13 a premium price, approximately no less than $2.79 for a 5.3 oz cup, excluding tax, compared to 14 other similar and allegedly non-misleading products that are sold at a lesser price, an average price 15 of no more than $2.19 for a 5.3 oz cup.” Id. ¶¶ 77–78. 16 Between August and October 2020, Steinberg purchased the Product for personal or 17 household consumption and use. Id. ¶¶ 80–81. She purchased the Product over competing 18 Icelandic skyr products because she believed the Product was made in Iceland, unlike its 19 competitors. Id. ¶¶ 69, 82. Had she known the truth, she allegedly would not have bought the 20 Product, would have paid less for it, or would have purchased one of the numerous, less costly 21

22 1 Icelandic Provisions requests that the Court judicially notice its website, which Steinberg discusses explicitly in her Complaint. Mot. at 10 n.6. Under Federal Rule of Evidence 201, a 23 court “may judicially notice a fact that is not subject to reasonable dispute because it: (1) is generally known within the trial court’s territorial jurisdiction; or (2) can be accurately and readily 24 determined from sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b). Steinberg contends that the content of the website is a disputed fact because the homepage that 25 Icelandic Provisions cites is from October 25, 2021, which does not appear the same way as it did around the time of the Complaint. Opp. at 10 n.5.

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Bluebook (online)
Steinberg v. Icelandic Provisions, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/steinberg-v-icelandic-provisions-inc-cand-2022.