West v. Molson Coors Beverage Company USA, LLC

CourtDistrict Court, E.D. New York
DecidedAugust 7, 2024
Docket1:23-cv-07547
StatusUnknown

This text of West v. Molson Coors Beverage Company USA, LLC (West v. Molson Coors Beverage Company USA, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
West v. Molson Coors Beverage Company USA, LLC, (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ---------------------------------------------------------- X : EMANUELL WEST and RICHARD : MEMORANDUM DECISION AND ALONZO, individually and on behalf of all : ORDER others similarly situated, : : 23-cv-7547 (BMC) : Plaintiffs, : : - against - : : : MOLSON COORS BEVERAGE : COMPANY USA, LLC, : : : Defendant. : ---------------------------------------------------------- X

COGAN, District Judge.

“In victory, you deserve Champagne; in defeat, you need it.” If the parties were to heed this wisdom, apocryphally attributed to Napoleon Bonaparte, then both sides might toast this decision with a glass of the good stuff. But they wouldn’t toast with defendant’s Vizzy Mimosa Hard Seltzer because it has no champagne in it. Plaintiffs Emanuell West and Richard Alonzo bring this action on behalf of themselves and a putative class, alleging that defendant Molson Coors violated New York General Business Law (“GBL”) Sections 349 and 350 by deceiving consumers into believing that Vizzy contained champagne when it did not.1 Because plaintiffs have failed to plausibly allege that Vizzy would mislead a significant portion of reasonable consumers, defendant’s motion to dismiss is granted. 2

1 Plaintiffs withdrew their claims for breach of express warranty and unjust enrichment.

2 As the Court previously held, defendant’s motion to dismiss, which was filed in response to the initial complaint, shall apply with equal force to plaintiffs’ amended complaint. BACKGROUND Plaintiffs claim they purchased defendant’s beverage under the mistaken impression that it contained champagne and that they would not have purchased it if they knew it did not. Defendant sells its beverage for $17.99 per 12-can box. The amended complaint includes photographs that appear to show the front of the can, the ingredient label, the box, and an advertisement for the beverage. All representations and omissions at issue in this action are reflected in those four photographs, which are reproduced below.

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DISCUSSION I. Standing Defendant argues that plaintiffs have not alleged an injury in fact. “To satisfy the requirements of standing under Article III of the Constitution, a plaintiff must establish three

elements: (1) the plaintiff must have suffered an injury in fact; (2) there must be a causal connection between the injury and the conduct complained of; and (3) it must be likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.” Sharpe v. A&W Concentrate Co., 481 F. Supp. 3d 94, 100 (E.D.N.Y. 2020) (citing Lujan v. Defs. of Wildlife, 504 U.S. 555, 560-61 (1992)). “In order to establish standing, the plaintiff’s injury must have resulted from the alleged deceptive act and the injury must be pled with specificity.” Olinsky & Assocs., PLLC v. Nutting, No. 20-cv-1142, 2021 WL 2779001, at *7 (N.D.N.Y. July 2, 2021). Plaintiffs’ complaint alleges that they would not have purchased defendant’s product if they knew that it lacked champagne. Put differently, plaintiffs only purchased the seltzer because

defendant allegedly misled them into believing it had champagne in it, and they claim that defendant falsely advertised the product to create that misimpression. As a result, plaintiffs claim they were injured to the tune of the seltzer’s purchase price. Defendant responds that plaintiffs can only establish standing by showing that they paid more for the product than it was worth. According to defendant, because plaintiffs have not alleged that the product is defective or otherwise worth less than what they paid for it, they have not suffered an injury in fact. There is some disagreement among the courts about whether standing in false advertising cases requires plaintiffs to plead that they paid a price premium, or if it is sufficient to allege that they would not have purchased the product in question but for the alleged misrepresentation. Compare Valiente v. Publix Super Markets, Inc., No. 22-cv-22930, 2023 WL 3620538, at *4 (S.D. Fla. May 24, 2023) (finding no standing where plaintiff “would not have bought a product, or would have paid less for it, if not for its allegedly deceptive label”) with Wiggins v. Unilever

United States, Inc., 684 F. Supp. 3d 127, 139 (S.D.N.Y. 2023) (finding standing where plaintiffs “would not have purchased the products had they known they were not hypoallergenic”). The Second Circuit has not addressed this issue, but district courts within our Circuit “have consistently ruled that plaintiffs satisfy the requirements of Article III standing when they plead that defendants’ misrepresentations caused them to purchase a product that they otherwise would not have purchased.” Wiggins, 684 F. Supp. 3d at 141. Indeed, all the cases defendant cites in support of this portion of its standing argument come from outside the Second Circuit. I join many of my colleagues in the Second Circuit in concluding that consumers suffer an injury in fact when, in reliance on alleged misrepresentations, they buy a product that they otherwise would not have purchased. I fail to see a meaningful distinction between a price-

premium injury and a but-for purchasing injury. When consumers purchase a product for $10, but would have only paid $5 (and it would have only been worth $5) if not for the misrepresentation, they are injured to the extent of the $5 delta. When consumers purchase a product for $10, but would not have purchased the product at all but for the misrepresentation, they are injured to the extent of the full $10 purchase price.3 In both situations, the purchaser spends (i.e., loses) some amount of money by relying on an allegedly false representation about the product, which is sufficient to establish an injury in fact. Plaintiffs’ allegation that they

3 This logic holds true if the product is genuinely “worth” $10. Purchasers cannot be expected to resell the goods to recoup on losses (assuming there even exists a second-hand seltzer market), so the fact that they received an item of theoretically equivalent value is of no moment. The injury-in-fact analysis would change if the product had a money-back guarantee, as in Valiente, but defendant offered no such policy. would not have purchased the product if they knew it did not contain champagne, which I must accept as true at this stage of litigation, thus constitutes an injury in fact. Defendant’s motion to dismiss for lack of standing is denied. II. Adequacy of Claims

Defendant also moves to dismiss this action for failure to state a claim. See Fed R. Civ. P. 12(b)(6). In considering a motion to dismiss pursuant to Rule 12(b)(6), “the Court must construe the complaint liberally, accept all factual allegations in the complaint as true, and draw all reasonable inferences in the plaintiff’s favor.” Gala v. City of New York, 525 F. Supp. 3d 425, 429 (E.D.N.Y. 2021) (cleaned up). To survive a motion to dismiss, the complaint must plead “enough facts to state a claim to relief that is plausible on its face,” Bell Atl. Corp. v.

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Cite This Page — Counsel Stack

Bluebook (online)
West v. Molson Coors Beverage Company USA, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-v-molson-coors-beverage-company-usa-llc-nyed-2024.