West v. Sambazon, Inc.

CourtDistrict Court, S.D. New York
DecidedSeptember 26, 2024
Docket7:23-cv-02961
StatusUnknown

This text of West v. Sambazon, Inc. (West v. Sambazon, 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
West v. Sambazon, Inc., (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------x LEAH WEST, individually and on behalf of all others similarly situated,

Plaintiff, OPINION & ORDER

- against - No. 23-CV-2961 (CS)

SAMBAZON, INC., and ECOCERT USA,

Defendants. -------------------------------------------------------------x

Appearances:

Kim E. Richman Richman Law & Policy Irvington, New York Counsel for Plaintiff

Brian D. Koosed K&L Gates LLP Washington, D.C.

Caitlin C. Blanche K&L Gates LLP Irvine, California Counsel for Defendant Sambazon, Inc.

Todd A. Roberts Ropers Majeski PC Menlo Park, California Counsel for Defendant Ecocert USA

Seibel, J. Before the Court are the motions to dismiss Plaintiff’s First Amended Complaint of Defendant Sambazon, Inc., (ECF No. 31), and Defendant Ecocert USA LLC, (ECF No. 37), under Federal Rule of Civil Procedure (“FRCP”) 12. For the reasons set forth below, Defendants’ motions are GRANTED. I. BACKGROUND For purposes of these motions, the Court accepts as true the facts, but not the conclusions, alleged by Plaintiff Leah West in her First Amended Complaint. (See ECF No. 29 (“FAC”).) Facts Defendant Sambazon, Inc. (“Sambazon”) is a privately held company incorporated and

headquartered in California, (FAC ¶¶ 5, 69), and is one of the “largest producers and merchants of açaí products nationwide,” (id. ¶ 5). Sambazon markets and sells its products to consumers in New York (among other places). (Id. ¶ 70; see id. ¶ 77.) Defendant Ecocert USA LLC1 (“Ecocert”) is an Indiana-based company, (id ¶ 71), that Plaintiff alleges “provides certification for 150+ standards in the food, farming, forestry, textiles, cosmetics and eco-products sectors worldwide,” (id. ¶ 6), and owns the rights to the Fair for Life (“FFL”) certification, (id. ¶ 7). In its capacity as the owner of that certification, Ecocert “is in charge of managing the governance of the [FFL] program, i.e. the evolution of the standard, the certification protocol, policies etc.” (Id.)

Sambazon pays Ecocert to use the FFL certification on Sambazon’s products, and Plaintiff alleges that Sambazon’s FFL Certified Açaí Products (the “Products”) are advertised as “guarantee[ing] that producers and workers . . . work for a fair wage and under good and respectful conditions, in a sustainable environment” and that “no children are employed as workers.” (Id. ¶ 8.) To support that assertion, Plaintiff points to representations on the Products’ packaging about Sambazon’s “fair and ethical production practices.” (Id. ¶ 19.) For example, the FAC includes pictures of the packaging for one of the Products that Plaintiff did not purchase

1 The FAC erroneously names Defendant Ecocert USA LLC as “Ecocert USA.” (See ECF No. 37 at 1.) Ecocert USA LLC’s sole member is Ecocert, Inc., a Delaware corporation. (See ECF No. 37-3 at 127.) Sambazon’s Agaf Superfruit Packs (the “Superfruit Packs”). (Ud. 420.) The Superfruit Packs label appears below: Se i —— k= Sper rocks =_—w3 ca eee 8) AL) ST Seon Cnty

ae pratt □ UMELeT Mey] enced feta) ess ade dle) We gare ano □

□□□ □□ MACY Yo a m4

Ud.) Plaintiff highlights the following representations on the Superfruit Packs packaging: “Every time you enjoy [the Products] you’re . . . directly giving back to family farmers who harvest wild Agaf” and “driving positive impact” by “Fair Wages & Labor Practices.” (Id. §] 20 (alteration in original).) Additionally, the packaging includes the FFL certification and the statement “THE ONLY CERTIFIED FAIR TRADE & ORGANIC ACAI COMPANY.” (Id. 4 20; see id. 4] 21.) But Plaintiff did not purchase the Superfruit Packs; rather, she purchased a different product — Sambazon’s Original Acaf Fresh Juice (the “Fresh Juice”) — several times over an unspecified period? at various stores in Danbury, Connecticut and Westchester County,

? Plaintiff alleges that West purchased the Fresh Juice “[d]uring the Class Period,” (id. 77), which the FAC defines as “the applicable statute of limitations period,” (id. { 87).

New York. (Id. ¶ 77.) While Plaintiff alleges that the challenged representations appear “on the back of [Sambazon’s] Products,” (id. ¶ 20), the FAC does not contain any other pictures of or specifics about the Products’ packaging, including the Fresh Juice label.3 Plaintiff alleges that Sambazon states on its website that the Products are “ethically sourced” and that Sambazon “cares for the people it works with,” (id. ¶ 24), emphasizing

transparency, commitment to ethical sourcing that is free from child labor, and oversight of the Products’ sourcing and production, (see id. ¶¶ 22-27). Sambazon’s website also invokes Ecocert’s FFL certification to advertise the company’s commitment to ethical sourcing and fair labor conditions, purportedly representing that FFL certification “ensur[es] no child/slave labor occurs.” (See id. ¶¶ 27-28.) Plaintiff alleges that Ecocert claims that FFL certification “ensures that basic human rights are respected” and that “efforts are made to improve the[] well-being” of those involved, including with respect to “working hours, health and safety, fair wages and benefits.”4 (Id. ¶¶ 30-32.) Plaintiff asserts that Ecocert “purposefully conveys to consumers that when a product is Fair for Life-certified, that product’s supply chain is free from child labor.”

(Id. ¶ 43; see id. ¶¶ 31-43). Plaintiff contends that Sambazon’s representations regarding the Products’ ethical sourcing, fair wages and labor practices, and freedom from child labor are false and misleading,

3 The FAC includes a hyperlink to the “Products” page on Sambazon’s website, (see id. at 1 n.1), from which one can navigate to images of the Products, but it does not include any images of the Fresh Juice purchased by Plaintiff or otherwise direct the Court to the Fresh Juice label. 4 The FFL certification scheme is based on criteria categorized into three levels, with criteria relating to child labor and the protection of young workers categorized as “KO,” (id. ¶¶ 33-34), meaning that failure to meet the stated objective “jeopardizes the certificate with immediate effect,” (id. ¶ 34), and if a non-conformity with a KO requirement is substantiated, it will “lead to a refusal or a reduction/withdrawal of your certificate,” (id. ¶ 42). (see id. ¶¶ 14, 61), because, contrary to Defendants’ statements and the FFL certification, the Products “are produced with labor practices that consumers understand to be unethical, including dangerous and unregulated working conditions and children engaging in hazardous labor.” (id. ¶ 45; see id. ¶¶ 28, 61.) She alleges that child labor is endemic in açaí production because most adults are too heavy to scale the thin trees to harvest the fruit, (id. ¶¶ 46-49), and that Sambazon

“buys fruit outside its registered network, exposing it to the possibility of purchasing fruit harvested by children,” (id. ¶ 54). Likewise, Plaintiff asserts that Ecocert’s representations about FFL certification are false and misleading, (id. ¶ 44), and its partnership with Sambazon furthers the consumer deception through collusion to profit from the Products’ deceptive marketing, (id. ¶¶ 16-17, 55). In Plaintiff’s view, “Sambazon and Ecocert are fully aware that consumers are willing to pay more for ‘ethically sourced’ products . . . and the Products are priced accordingly,” commanding a “premium” for the Products “as compared to açaí products that do not make similar promises to consumers.” (Id. ¶ 67.) Plaintiff alleges that when she purchased the Fresh Juice, she “saw and believed that the Products support fair wages and labor practices, based upon

the Products’ packaging and [FFL] certification.” (Id.

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