Vazquez v. Walmart, Inc.

CourtDistrict Court, S.D. New York
DecidedNovember 29, 2023
Docket1:22-cv-06215
StatusUnknown

This text of Vazquez v. Walmart, Inc. (Vazquez v. Walmart, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vazquez v. Walmart, Inc., (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

CHARLENE VAZQUEZ, individually and on behalf of all others similarly situated, 22-CV-6215 (JPO) Plaintiffs, OPINION AND ORDER -v-

WALMART, INC., Defendant.

J. PAUL OETKEN, District Judge: Plaintiff Charlene Vazquez, a Bronx resident, brings suit against Defendant Walmart, Inc. on behalf of herself and a putative class of other plaintiffs who purchased Walmart’s Oats & Honey Crunchy Granola Bars. Vazquez asserts that Walmart violated Sections 349 and 350 of New York’s General Business Law and other states’ consumer fraud statutes because, contrary to representations on the packaging, the product contains a de minimis amount of honey. Vazquez also brings related claims of breach of express and implied warranties, fraud, and unjust enrichment. Walmart now moves to dismiss Vazquez’s action for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). For the reasons that follow, the motion is granted. I. Background A. Factual Background The following facts, drawn from the complaint (ECF No. 1 (“Compl.”)), are presumed true for the purposes of resolving Walmart’s motion to dismiss. Plaintiff Charlene Vazquez purchased Walmart’s Oats & Honey Crunchy Granola Bars (the “Product”) on one or more occasions during the fall of 2021 and winter of 2022 at a Walmart in New York. (Ud. § 68.) Vazquez alleges that the packaging on the Product misled her to believe that the Product would “contain a non-de minimis amount of honey, is primarily sweetened with honey and contains limited ingredients based on the references to only oats and honey.” (/d. J 3; see also id. §§ 69-70.) Portions of the Product’s packaging are reproduced below.

(ejco . SSS \ 5 Oats & Honey { Crunchy A. Granola Bars \ he 3 2 Cord Lacs oe Na Tare y wi yan - cit □□ _— aoe i Pie eee | Re ee) 0G | A Re □□ ee)

SY 5 J a \ TT Tr \, NATURAL Fl FLOUR. (Id. | 1 (front packaging); id. § 25 (back packaging).) Walmart sells the Product for $1.99 for six packages, with each package containing two bars. (Ud. § 41.) Vazquez contends that, as a result of the alleged misrepresentations, Walmart sold a higher quantity of the Product and at a higher price than it otherwise would have absent

those misrepresentations. (Id. ¶ 39.) Vazquez further alleges that she would not have bought the Product or would have paid less for it had she known the truth about its contents. (Id. ¶ 40.) B. Procedural History Vazquez initiated this action by filing a complaint on July 21, 2022. (ECF No. 1.) On

November 21, 2022, Walmart filed a motion to dismiss for failure to state a claim. (ECF No. 6.) On December 6, 2022, Vazquez filed an opposition to Walmart’s motion to dismiss. (ECF No. 8.) On December 12, 2022, Walmart filed a reply in support of its motion to dismiss. (ECF No. 11.) II. Legal Standards A plaintiff facing a motion to dismiss under Rule 12(b)(6) must plead “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). A complaint need not contain “detailed factual allegations,” but it must offer something more than “an unadorned, the-defendant-unlawfully-harmed-me accusation.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal quotation marks and citation omitted). In resolving a motion to dismiss, a court “accept[s] the complaint’s factual allegations as true and draw[s] all

reasonable inferences in the plaintiff’s favor.” Steginsky v. Xcelera Inc., 741 F.3d 365, 368 (2d Cir. 2014). Nevertheless, complaints “must be supported by factual allegations” and courts may identify pleadings that “because they are no more than conclusions, are not entitled to the assumption of truth.” Iqbal, 556 U.S. at 679. Plaintiff also asserts that Walmart defrauded her. Under Rule 9(b)’s heightened pleading requirements for fraud claims, a plaintiff must “(1) specify the statements that the plaintiff contends were fraudulent, (2) identify the speaker, (3) state where and when the statements were made, and (4) explain why the statements were fraudulent.” Anschutz Corp. v. Merrill Lynch & Co., Inc., 690 F.3d 98, 108 (2d Cir. 2012) (internal quotation marks and citation omitted). III. Discussion Vazquez’s core allegation is that the words “oats” and “honey” on the Product’s packaging, along with the accompanying images, mislead consumers to believe that the Product contains two key ingredients, and that one of them—honey—is the primary sweetener. Vazquez asserts a range of claims against Walmart, but every claim shares a common premise: that

Walmart deceived consumers. Because the Court concludes that “there is no material misrepresentation” in the Product’s packaging, “none of Plaintiff’s causes of action can survive this Motion.” Bynum v. Fam. Dollar Stores, Inc., 592 F. Supp. 3d 304, 309 (S.D.N.Y. 2022). The Court first concludes that Vazquez’s claims under New York’s General Business Law fail because her allegations do not support a claim of material misrepresentation, before concluding that Vazquez’s other claims similarly fail. Vazquez’s action is one of several class actions brought in recent years contending that packaging on well-known food products is deceptive. Id. at 309 & n.1 (collecting cases). The Court’s decision is consistent with the outcomes in many of those actions. Id. at 309. As with those cases, the complaint here attempts, but fails, “to draw highly specific inferences regarding

the source or predominance of a particular flavor or ingredient identified on a label.” Cooper v. Anheuser-Busch, LLC, 553 F. Supp. 3d 83, 95 (S.D.N.Y. 2021) (collecting cases). A. New York General Business Law Sections 349 and 350 of the General Business Law (GBL) prohibit deceptive business practices and false advertising. To state a claim under those provisions, “a plaintiff must allege that a defendant has engaged in (1) consumer-oriented conduct that is (2) materially misleading and that (3) plaintiff suffered injury as a result of the allegedly deceptive act or practice.” Orlander v. Staples, Inc., 802 F.3d 289, 300 (2d Cir. 2015) (internal quotation marks and citation omitted). Walmart disputes only the second prong, contending that the Product’s packaging is not materially misleading. The Court agrees. Vazquez’s allegations do not support a reasonable inference that the Product contains more than a de minimis amount of honey, that the Product is predominantly sweetened with honey, or that oats and honey are the two primary ingredients. Whether packaging is materially misleading depends on whether a “significant portion of

the general consuming public or of targeted consumers, acting reasonably in the circumstances, could be misled.” Jessani v. Monini N. Am., Inc., 744 F. App’x 18, 19 (2d Cir. 2018) (summary order) (internal quotation marks and citation omitted). To meet this standard, “plaintiffs must do more than plausibly allege that a label might conceivably be misunderstood by some few consumers.” Barton v. Pret A Manger (USA) Ltd., 535 F. Supp. 3d 225, 237 (S.D.N.Y. 2021) (internal quotation marks and citation omitted). The reasonable consumer analysis focuses on the precise representations made on the packaging, and the context and specificity of representations on the packaging are relevant to the inquiry. See Mantikas v.

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Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Anschutz Corp. v. Merrill Lynch & Co.
690 F.3d 98 (Second Circuit, 2012)
Fink v. Time Warner Cable
714 F.3d 739 (Second Circuit, 2013)
Steginsky v. Xcelera Inc.
741 F.3d 365 (Second Circuit, 2014)
Orlander v. Staples, Inc.
802 F.3d 289 (Second Circuit, 2015)
Garcia v. Chrysler Group LLC
127 F. Supp. 3d 212 (S.D. New York, 2015)
Langan v. Johnson & Johnson Consumer Cos.
897 F.3d 88 (Second Circuit, 2018)
Financial Guaranty Insurance v. Putnam Advisory Co.
783 F.3d 395 (Second Circuit, 2015)
Mantikas ex rel. Situated v. Kellogg Co.
910 F.3d 633 (Second Circuit, 2018)
United States ex rel. Tessler v. City of New York
712 F. App'x 27 (Second Circuit, 2017)
Quinn v. Walgreen Co.
958 F. Supp. 2d 533 (S.D. New York, 2013)

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