Terrazzino v. Wal-Mart Stores, Inc.

335 F. Supp. 3d 1074
CourtDistrict Court, E.D. Illinois
DecidedAugust 16, 2018
DocketNo. 17-cv-01731
StatusPublished
Cited by19 cases

This text of 335 F. Supp. 3d 1074 (Terrazzino v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terrazzino v. Wal-Mart Stores, Inc., 335 F. Supp. 3d 1074 (illinoised 2018).

Opinion

Andrea R. Wood, United States District Judge

Plaintiff Erin Terrazzino purchased a bag of Great Value All Natural Pita Chips ("Pita Chips") from Defendant Wal-Mart Stores, Inc.'s ("Walmart") website. Terrazzino alleges that despite the fact that the Pita Chips were prominently branded as "All Natural," the product contained a variety of synthetic, artificial, and heavily-processed ingredients. Consequently, Terrazzino has filed this lawsuit alleging that Walmart's representation of the Pita Chips as "All Natural" was false, misleading, and deceptive. Presently before the Court is Walmart's motion to dismiss the complaint pursuant to Federal Rules of Civil Procedure 9(b), 12(b)(1), and 12(b)(6). (Dkt. No. 13). For the reasons explained below, Walmart's motion to dismiss is granted in part and denied in part.

BACKGROUND

As alleged in the Complaint, Walmart manufactured, distributed, advertised, labeled, and sold the Pita Chips. (Compl. ¶ 23, Dkt. No. 1.) The Pita Chips' packaging prominently displayed the words "All Natural" in all capital letters on the front center of the bag. (Id. ¶ 26.) The package also had a stamp on the bottom-right side of the bag that said "All Natural" and "Cholesterol Free" around the edge and "baked" in the center. (Id. ¶ 37 & Fig. 2.) The image below shows the packaging's general appearance:

*1079Despite this advertising, the Pita Chips actually contained a variety of synthetic, artificial, and heavily-processed ingredients, including enriched wheat flour, which contains niacin, thiamine mononitrate, and folic acid. (Id. ¶ 29.) Enriched flour is formed when wheat seeds are ground to remove the outer layer of the seed, as well as almost all nutrients. The flour is then synthetically bleached with chemical additives to give it a white color. After bleaching, synthetic substances (including niacin, thiamine mononitrate, and folic acid ) are added to the flour to restore nutritional value to the Pita Chips. (Id. ¶ 30.)

On February 4, 2017, Terrazzino purchased the Pita Chips through Walmart's online store, paying approximately $2.00 for the bag. (Id. ¶ 21.) On the webpage where the Pita Chips were sold, there was an "about this item" section, which listed the following ingredients: "Enriched Wheat Flour (Wheat Flour, Niacin, Reduced Iron, Thiamine Mononitrate, Riboflavin, Folic Acid ), Sunflower Oil, Sea Salt, Yeast, Oat Fiber, Sugar, Wheat Starch, Ascorbic Acid, Silicon Dioxide." (Def.'s Mot. to Dismiss, Ex. 1 at 4 of 12, Dkt. No. 58.) To view these ingredients, however, a user had to go through one of two processes: the user could either scroll three pages *1080of web content to the "about this item" tab, and then click on the "read more" tab to find the ingredients (Resp. to Mot. to Dismiss, Ex. A, Dkt. No. 21); or the user could click on an earlier "read more" tab, which would take her straight to the "about this item" tab, and then click on a second "read more" tab to find the ingredients. (Id. Ex. B.)

Terrazzino has brought the present class-action lawsuit, alleging that Walmart's representation that the Pita Chips were "All Natural" was false, misleading, and deceptive. She seeks to represent the following classes:

The National Class: All persons who, between March 3, 2012 and present purchased one or more bags of "Great Value All Natural PITA CHIPS" at a Walmart store located in the United States or online at www.walmart.com.
The Illinois Class: All persons who, between March 3, 2014 and present purchased one or more bags of "Great Value All Natural PITA CHIPS" at a Walmart store located in Illinois or online at www.walmart.com while in Illinois.

(Compl. ¶¶ 51, 52.) Terrazzino's complaint alleges common law claims for breach of express warranty (Count I) and unjust enrichment (Count II) on behalf of the National Class, and violations of the Illinois Consumer Fraud and Deceptive Practices Act ("ICFA") on behalf of the Illinois Class (Count III).

DISCUSSION

I. Rule 12(b)(1) Motion to Dismiss for Lack of Standing

Walmart first argues that Terrazzino lacks standing to assert claims premised on the laws of states other than Illinois and therefore any such claims must be dismissed. Specifically, Walmart contends that because Terrazzino claims no injuries in any state other than Illinois, she has no standing to pursue statutory causes of action under the laws of any other state. Terrazzino counters that this argument is premature.

"[T]he question of standing is whether the litigant is entitled to have the court decide the merits of the dispute or particular issues." Apex v. Digital, Inc. v. Sears, Roebuck & Co. , 572 F.3d 440, 443 (7th Cir. 2009) (quoting Perry v. Vill. of Arlington Heights , 186 F.3d 826, 829 (7th Cir. 1999) ). The plaintiff bears the burden of proof as to standing. Kathrein v. City of Evanston, Ill. , 636 F.3d 906, 914 (7th Cir. 2011). To establish standing, a plaintiff must demonstrate: "(1) that [the plaintiff has] suffered an injury in fact (2) that is fairly traceable to the action of the defendant and (3) that will likely be redressed with a favorable decision." Id. at 914 (quoting Books v. City of Elkhart, Ind. , 235 F.3d 292, 299 (7th Cir. 2000) ). To demonstrate an injury in fact, the plaintiff must allege that she "suffered an invasion of a legally protected interest that is concrete and particularized and actual or imminent, not conjectural or hypothetical." Spokeo, Inc. v. Robins , --- U.S. ----, 136 S.Ct. 1540, 1548, 194 L.Ed.2d 635 (2016) (quoting Lujan v. Defenders of Wildlife , 504 U.S. 555, 560, 112 S.Ct.

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335 F. Supp. 3d 1074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrazzino-v-wal-mart-stores-inc-illinoised-2018.