Tucker v. Post Consumer Brands, LLC

CourtDistrict Court, N.D. California
DecidedApril 21, 2020
Docket4:19-cv-03993
StatusUnknown

This text of Tucker v. Post Consumer Brands, LLC (Tucker v. Post Consumer Brands, LLC) 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
Tucker v. Post Consumer Brands, LLC, (N.D. Cal. 2020).

Opinion

1 2 UNITED STATES DISTRICT COURT 3 NORTHERN DISTRICT OF CALIFORNIA 4 5 PETER TUCKER, CASE NO. 19-cv-03993-YGR

6 Plaintiff, ORDER DENYING MOTION TO DISMISS 7 vs. Re: Dkt. Nos. 24, 38 8 POST CONSUMER BRANDS, LLC, 9 Defendant.

10 Plaintiff Peter Tucker brings this putative class action alleging that the branding and 11 packaging of defendant Post Consumer Brands, LLC’s “Honey Bunches of Oats” cereal falsely 12 and deceptively conveyed that honey was a primary or significant sweetener, when in fact, refined 13 substances were the primary sweeteners. The operative complaint alleges three causes of action 14 for violations of the California Consumers Legal Remedies Act, Cal. Civ. Code § 1750 et seq. 15 (“CLRA”); California False Advertising Law, Cal. Bus. & Prof. Code § 17500 et seq. (“FAL”); 16 and California Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq. (“UCL”). 17 Pending before the Court is defendant’s motion to dismiss the amended complaint pursuant 18 to Federal Rule of Civil Procedure 12(b)(6). Having carefully considered the pleadings in this 19 action and the papers submitted, and for the reasons set forth below, the Court DENIES the motion. 20 I. BACKGROUND 21 Defendant manufactures and markets varieties of breakfast cereals known as “Honey 22 Bunches of Oats.” These cereals are sold to the public in rectangular boxes containing 13 ounces 23 or more of cereal and individual serving “to go” cups containing 2.25 ounces of cereal. The front 24 of each package is materially identical. As shown below, the package depicts a large yellow- 25 orange circle simulating a radiating sun, emblazoned with the words “HONEY BUNCHES OF 26 OATS” and showing a wooden honey dipper dripping honey, and towards the bottom of the 27 package is the outline of a bee trailing a broken line indicating flight: PS

3 I “es * Vij ee aw Co ee 4 Qo oA y= “ Paes 5 ao >Re 5 425% 8 \ J 1 wo (ik □□ “OntS ; i el LN ee = : eee i Pee. tr), 9 i! 10 11 Plaintiff alleges the branding and packaging of the cereal convey to consumers that honey 12 || primary or significant sweetener, as compared to sugar and other refined substances that are

13 perceived as unhealthy. In support of its claim, plaintiff points to an August 2019 survey of more

v 14 || than 400 consumers, in which 68% of respondents believed honey was the cereal’s primary

15 sweetener and 79.5% believed honey was one of the cereal’s three main ingredients based on the Q 16 || front packaging. Plaintiff alleges that in fact, the product is sweetened using various combinations

17 of white sugar, brown sugar, corn syrup, malted barley syrup, molasses, and honey, with honey

18 consistently being the least or second-least prominent sweetener. 19 Plaintiff most recently purchased Honey Bunches of Oats on January 16, 2019. He alleges 20 || that he purchased and consumed the cereal based on the branding and packaging, which led him to 21 believe the cereal was primarily or exclusively sweetened with honey and that honey was one of 22 || the top three ingredients in the cereal. Plaintiff alleges that he would consider purchasing the 23 cereal again if the labeling were accurate. 24 Plaintiff filed his initial complaint in this action on July 11, 2019. On August 16, 2019, the 25 Court entered a joint stipulation to stay the case pending a decision on a motion to dismiss filed in 26 Lima v. Post Consumer Brands, LLC, No. 1:18-cv-12100-ADB (D. Mass.), which the parties 27 agreed would “resolve some or all of the claims in this case, or, at a minimum, [would] be 28 instructive and helpful to resolving the similar factual and legal claims in this case.” The Lima

1 court dismissed the complaint with prejudice. Lima v. Post Consumer Brands, LLC, No. 1:18-CV- 2 12100-ADB, 2019 WL 3802885 (D. Mass. Aug. 13, 2019), reconsideration denied, No. 1:18-CV- 3 12100-ADB, 2019 WL 4889599 (D. Mass. Oct. 2, 2019). On September 11, 2019, plaintiff filed 4 an amended complaint in this case. 5 II. LEGAL STANDARD 6 Under Federal Rule of Civil Procedure 12(b)(6), an action may be dismissed for “failure to 7 state a claim upon which relief can be granted.” Dismissal is appropriate where the complaint 8 lacks a cognizable legal theory or sufficient facts to support a cognizable legal theory. Balistreri 9 v. Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir. 1990). The complaint must allege “more 10 than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not 11 do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). When considering a motion to 12 dismiss, a court must accept all material allegations in the complaint as true and construe them in 13 the light most favorable to plaintiff. NL Indus., Inc. v. Kaplan, 792 F.2d 896, 898 (9th Cir. 1986). 14 Claims alleging fraud must also meet the heightened pleading standard of Rule 9(b). Fed. 15 R. Civ. P. 9(b). Rule 9(b) requires “an account of the time, place, and specific content of the false 16 representations as well as the identities of the parties to the misrepresentations.” Swartz v. KPMG 17 LLP, 476 F.3d 756, 764 (9th Cir. 2007) (internal quotation marks omitted). To comply with the 18 Rule 9(b) pleading standard, allegations of fraud “must be specific enough to give defendants 19 notice of the particular misconduct which is alleged to constitute the fraud charged so that they can 20 defend against the charge and not just deny that they have done anything wrong.” Id. (quoting 21 Bly-Magee v. Cal., 236 F.3d 1014, 1019 (9th Cir. 2001)). 22 III. DISCUSSION 23 Defendant moves to dismiss all three claims on the grounds that: (i) the branding and 24 packaging at issue comply with the Federal Drug Administration (“FDA”)’s flavor labeling and 25 misbranding regulations, and thus, plaintiff’s claims are preempted; (ii) no reasonable consumer 26 would understand the Honey Bunches of Oats packaging to make a representation about the 27 amount of honey in the cereal; and (iii) plaintiff lacks standing to seek injunctive relief because he 1 the Court finds plaintiff has stated a claim for relief under the CLRA, his FAL and UCL claims 2 fail because plaintiff has an adequate remedy at law. 3 The Court addresses each argument in turn. 4 A. Preemption 5 The Supremacy Clause grants Congress the power to preempt state law. Crosby v. 6 National Foreign Trade Council, 530 U.S. 363, 372 (2000).

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