Anderson filed a putative class action asserting the usual
California claims, plus Magnuson-Moss Warranty Act claims, based on Jamba
Juice’s allegedly false representations that its smoothie kits were “All
Natural.” Jamba Juice moved to dismiss
and the court granted the motion in part and denied it in part.
Anderson alleged that the kits were prominently labeled “All
Natural” in all five flavors, and that this allowed Jamba Juice to charge a
price premium, even though the smoothie kits contain “unnaturally processed,
synthetic and/or non-natural ingredients: ascorbic acid, steviol glycosides,
xanthan gum, and citric acid.” Anderson
bought the Mango and Razzmatazz kits in reliance on the representations.
Warranty: Anderson alleged that “All Natural” was a written
warranty that the ingredients in the smoothie kits were free of a particular
type of defect (i.e., that they were not synthetic, artificial and/or otherwise
non-natural). The MMWA defines a
warranty as “any written affirmation of fact or written promise … which relates
to the nature of the material or workmanship and affirms or promises that such
material or workmanship is defect free or will meet a specified level of
performance over a specified period of time.”
The claim here was based on “defect free.” The court found that “All Natural” was not a promise
of freedom from defect, but rather a product description.
Next, the court turned to Jamba Juice’s argument that
Anderson lacked standing for flavors he didn’t buy. The cases are divided, but the court was more
persuaded by Anderson’s argument that he had representative standing as long as
his claims were based on the same core factual allegations and causes of
action. Where there’s sufficient
similarity between the products, concerns over material differences can be
addressed at the class certification stage.
There was sufficient similarity here between purchased and unpurchased
products—the same alleged misrepresentation was on all flavors.
What does 'Unnaturally processed' mean in their complaint?
ReplyDeleteFor example, they talk about xanthan gum, which in the USA is mainly made by fermenting whey. Is a fermentation product 'unnatural'? Is yoghurt 'unnatural'?
Fundamentally any Smoothy is 'unnaturally processed' - there's nothing 'natural' about putting perfectly good fruit in a blender!