Yu v. Froneri US, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 16, 2022
Docket1:20-cv-08512
StatusUnknown

This text of Yu v. Froneri US, Inc. (Yu v. Froneri US, 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
Yu v. Froneri US, Inc., (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK LAUREN YU, individually and on behalf of all others similarly situated, Plaintiff, OPINION & ORDER – against – 20 Civ. 8512 (ER) DREYER’S GRAND ICE CREAM, INC., Defendant. RAMOS, D.J.: Lauren Yu brings this putative class action against Dreyer’s Grand Ice Cream, Inc. (“Dreyer’s”), alleging that the representations on the label of certain Dreyer’s ice cream bars sold under its Häagen-Dazs brand are misleading, because the bars’ chocolate coating contains vegetable oil.1 Yu seeks injunctive relief and monetary damages for: (1) violations of Sections 349 and 350 of the New York General Business Law (“GBL”), which prohibit deceptive business practices and false advertising; (2) breach of express warranty; (3) breach of the implied warranty of merchantability; (4) violation of the Magnuson Moss Warranty Act, 15 U.S.C. §§ 2301, et seq. (“MMWA”); (5) fraud; and (6) unjust enrichment. Yu brings this action on behalf of a putative class of similarly situated individuals. Before the Court is Dreyer’s motion to dismiss the First Amended Complaint (“FAC”) pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted.2 For the reasons set forth below, the motion to dismiss is GRANTED.

1 Yu’s case is identical to at least two other cases brought by Plaintiff’s counsel in this District—Beers v. Mars Wrigley Confectionary US, LLC, No. 21 Civ. 2 (CS), and Mitchell v. Whole Foods Market Group, Inc., No. 20 Civ. 8496 (ER)—except that the ice cream bars at issue here contain coffee ice cream under the chocolate coating rather than vanilla ice cream. Plaintiff’s complaint meets the same fate. 2 Unless otherwise noted, citations to “¶ _” refer to Yu’s First Amended Complaint (“FAC”), Doc. 22. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY A. Factual Background Dreyer’s is a Delaware corporation with a principal place of business in Oakland, California. 9] 53, 58. It is a leading seller of premium frozen dairy desserts under the Haéagen- Dazs brand. 4/59. Dreyer’s sells its Haagen-Dazs Coffee Ice Cream Dipped in Rich Milk Chocolate, Almonds, and Toffee bars (the “Product”) in tens of thousands of stores nationwide, including warehouse club stores, supermarkets, convenience stores, gas stations, and drug stores. 4 60-61. In May, June, and July of 2020, among other times, Yu, a resident of Manhattan, purchased the Product on numerous occasions, including at a Key Food grocery store and a Rite Aid drug store in Manhattan. §§ 57, 62. The Product consists of “ice cream bars purporting to be dipped in milk chocolate and covered with almonds and toffee.” § 1. The representations on the front label identify the Product as “coffee ice cream dipped in rich milk chocolate, almonds, and toffee.” § 2. Photos of the Product’s label and its ingredient list, as included in the FAC, are below. SSS SAY Sn ETS (ae en-Dazs L pS INGREDIENTS: COFFEE ICE CREAM: CREAM, SKIM MILK, SUGAR, EGG YOLKS, g ° [\Seog » ae COFFEE. MILK CHOCOLATE AND VEGETABLE OIL COATING WITH ALMONDS Cp RR AND TOFFEE: MILK CHOCOLATE (SUGAR, WHOLE MILK POWDER, CHOCOLATE, FEN iE COCOA BUTTER, SOY LECITHIN, VANILLA EXTRACT), COCONUT OIL, ALMONDS ie I EIS OS et Ea , SALT), UGAR, AL Nea iN Rees SODA, SOY LECITHIN, SALN), “i : COFFEE eae, ALMOND CRUNCH @ is eer 7% 3-3FLOZBARS /9FLOZ(266 ml) o> SARSumE™ aura (en)

Yu alleges that the Product’s front label is misleading because the representation that the ice cream is “dipped in ‘rich milk chocolate,’” is false, since the addition of vegetable oil to the chocolate coating “fundamentally changes the nature of the bar’s coating.” ¶ 25. According to the FAC, chocolate is “a food prepared from ground roasted cacao beans,” that are ground to

produce cocoa mass or chocolate liquor and then combined with dairy ingredients, sweetener, and flavorings. ¶¶ 3–6. With respect to the Product’s front label, Yu claims that since it “represents the Product contains ‘rich milk chocolate’ without qualification, consumers expect that it only has chocolate ingredients, when this is not accurate.” ¶ 18. With respect to the ingredient list, which indicates that the Product contains coconut oil and vegetable oil, Yu argues that “[c]onsumers of a high-end premium ice cream bar that claims to be dipped in ‘milk chocolate’ will not be so distrustful such as to scrutinize the fine print of the ingredient list and uncover the deception,” because the label is unambiguous. ¶ 43. She claims that the average consumer “spends seconds choosing between similar foods,” and thus will not examine the fine print of the ingredient list in order to confirm that the front label is accurate. ¶ 44.

�e Product is sold at a “premium price,” approximately $5.99 for a package of three three-ounce bars. ¶ 50. Yu contends that as a result of the “false and misleading representations,” Dreyer’s sells the Product at a higher price than other similar products represented in a non-misleading way, and higher than it would be sold “absent the misleading representations and omissions.” Id. Yu further alleges that she, as well as the proposed class members consisting of all purchasers of the Product who reside in New York, Virginia, Delaware, and Maine during the applicable statutes of limitations, would not have bought the Product or would have paid less for it if they had known the truth. ¶¶ 68, 82, 89, 94. Yu alleges that she intends to purchase the Product again when she can do so with the assurance that the representations on its labeling are consistent with its ingredients. ¶ 67. B. Procedural History Yu brought this action against Froneri US, Inc., on October 13, 2020. Doc. 1. On March

5, 2021, Defendant moved to dismiss the complaint and noted that Yu had sued the wrong entity.3 Docs. 14, 15. Yu filed the FAC against Dreyer’s, the correct Defendant, on April 26, 2021. Doc. 22. On May 26, 2021, Dreyer’s moved to dismiss the FAC pursuant to Rule 12(b)(6). Doc. 23. II. LEGAL STANDARD Under Rule 12(b)(6), a complaint may be dismissed for failure to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). When ruling on a motion to dismiss pursuant to Rule 12(b)(6), the Court must accept all factual allegations in the complaint as true and draw all reasonable inferences in the plaintiff’s favor. Koch v. Christie’s Int’l, PLC, 699 F.3d 141, 145 (2d Cir. 2012). However, the Court is not required to credit “mere conclusory

statements” or “threadbare recitals of the elements of a cause of action.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). “To survive a motion to dismiss, a complaint must contain sufficient factual matter . . . to ‘state a claim to relief that is plausible on its face.’” Id. (quoting Twombly, 550 U.S. at 570). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). Federal Rule of Civil Procedure 8 “marks a notable and generous

3 Judge Alison J. Nathan, who previously presided over the case, denied Defendant’s first motion to dismiss as moot on July 2, 2021. Doc. 27.

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Yu v. Froneri US, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/yu-v-froneri-us-inc-nysd-2022.