Rice v. Kimberly-Clark Corp., No. 2:21-cv-01519-DAD-KJN, 2022 WL 16804522 (E.D. Cal. Nov. 8, 2022)
Plaintiffs claimed that Huggies Snug and Dry diapers were
falsely advertised as safe/not harsh for babies, but their son developed
“severe and persistent rashes, lesions, blistering, and what appeared to be
chemical burns on his skin” under the diaper. On its Amazon.com storefront,
Huggies represents, among other things, that Snug and Dry diapers help keep an
infant “dry & comfortable” and contain “[n]o harsh ingredients.” But some
negative consumer reviews of the product, dating to 2012, describe moderate to
severe bumps, rashes, blisters, bleeding, peeling, and/or chemical burns that
developed on their babies under the area covered by the diaper after they began
using the Snug and Dry product. They brought the usual
California claims.
Under Ninth Circuit law, their equitable restitution claims
were dismissed because they have adequate remedies at law. But injunctive
relief was still possible because they alleged that they and other future consumers
will continue to be misled.
KC’s knowledge: The complaint quoted specific consumer
reviews, responded to in many cases by the “Huggies team.” “The significant
number of complaints pre-dating plaintiffs’ purchase by up to two years, the
alleged responses by defendant’s agents to those complaints, the fact many of
the complaints were posted on defendant’s own website, and the many similar
complaints on top retailers’ websites is sufficient, in combination, to allege
defendant’s knowledge at this stage.”
Fraudulent affirmative misrepresentations: Adequately
alleged, despite KC’s arguments that the statements at issue were puffery and
that no reasonable consumer would need to be warned about the possibility of
diaper rash resulting from the use of diapers. Although the court wouldn’t
credit general allegations about a “pervasive” marketing campaign without more
detail, it did consider arguments about KC’s Snug and Dry Amazon.com
storefront.
The Amazon storefront claimed that Snug and Dry diapers
offer “unbeatable protection,” contain “[n]o harsh ingredients,” are
“[h]ypoallergenic and free of fragrances, parabens, elemental chlorine &
natural rubber latex,” “help[ ] prevent leaks for up to 12 hours, day or
night,” and “absorb[ ] wetness in seconds to help keep baby dry &
comfortable.” While “unbeatable protection” is puffery, “No Harsh Ingredients –
Hypoallergenic and free of fragrances, parabens, elemental chlorine &
natural rubber latex,” “help[ ] prevent leaks for up to 12 hours, day or
night,” and “absorb[ ] wetness in seconds to help keep baby dry &
comfortable” were all “specific representations of fact on which a reasonable
consumer could rely.” Taken together, they could lead a reasonable consumer “to
believe Snug and Dry diapers keep a child’s skin dry, minimize diaper rash, do
not contain ingredients that could harm infant skin, are suitable for sensitive
skin, and are ‘safe for ... intended use,’ when in reality a ‘significant
number of children who wear [them] will develop’ serious injuries.”
Plaintifs didn’t allege that KC implied that the diapers
would never cause diaper rash, but that the statements suggested the diapers
will never cause more severe, “unexpected” injuries, including chemical burns.
Fraudulent omissions: KC allegedly omitted (1) a statement
qualifying defendant’s claims regarding the safety of Snug and Dry diapers, and
(2) a label on the packaging warning consumers to stop using the diapers if a
child suffers an unusual adverse skin reaction, as the diapers “may be the
source of their child’s injury ....” To adequately plead a deceptive
advertising claim under the FAL, plaintiffs must “identify specific
advertisements and promotional materials; allege when [they] were exposed to
the materials; and explain how such materials were false or misleading.” That
was done here with the Amazon storefront and its affirmative statements,
allegedly misleading because of the omitted information.
Under the CLRA/UCL unlawful prong, plaintiffs had to show
that KC had a duty to disclose information regarding the Snug and Dry diaper’s
alleged “propensity to cause prolonged adverse skin reactions.” This requires a
material omission central to the product’s function, combined with at least one
of the following: the defendant “has exclusive knowledge of material facts not
known or reasonably accessible to the plaintiff,” “actively conceals a material
fact from the plaintiff,” or “makes partial representations that are misleading
because some other material fact has not been disclosed.” Here, plaintiffs
plausibly alleged that KC made partial statements that misled consumers into
believing the diapers were safe for all babies.
Even if some diaper rash is a fact of life, plaintiffs alleged
“more severe, unusual, and persistent injuries, including ‘chemical burns’
resulting exclusively from the Snug and Dry diapers.” KC itself implicitly
acknowledged that a chemical burn is not diaper rash when it responded to a
customer review alleging the diapers caused “severe chemical burns,” by saying
“Huggies products can’t cause a chemical burn ....”
Fraud and unfairness prong UCL claims also survived for now.
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