James v. Chocmod USA Inc., 2025 WL 950509, No. 1:22-cv-01435 JLT SKO (E.D. Cal. Mar. 28, 2025)
Plaintiffs sued over defendant’s “Truffettes de France”
(trans. “Truffles from France”), which are, despite the name, made in Canada. They
brought the usual
California claims.
Even if the truffles were not physically different, and if—as
defendant argued—it uses the same recipe in France as it does in Canada and
doesn’t charge more based on place of manufacture, California law holds that
there is a cognizable injury. As the California Supreme Court held in Kwikset:
To some consumers, processes and
places of origin matter. … Whether a wine is from a particular locale may
matter to the oenophile who values subtle regional differences.
...
For each consumer who relies on the
truth and accuracy of a label and is deceived by misrepresentations into making
a purchase, the economic harm is the same: the consumer has purchased a product
that he or she paid more for than he or she otherwise might have been willing
to pay if the product had been labeled accurately. This economic harm—the loss
of real dollars from a consumer’s pocket—is the same whether or not a court
might objectively view the products as functionally equivalent. … Two wines
might to almost any palate taste indistinguishable—but to serious oenophiles,
the difference between one year and the next, between grapes from one valley
and another nearby, might be sufficient to carry with it real economic
differences in how much they would pay.
Chocmod tried to defend by arguing that it had trademark
rights in its brand name and thus no reasonable consumer would be deceived, particularly
because the back label “explicitly states” that they were made in Canada. Initially,
Moore v. Mars Petcare US, Inc., 966 F.3d 1007 (9th Cir. 2020), held:
[B]rand names by themselves can be
misleading in the context of the product being marketed. Descriptive brand
names require of the consumer “little thought,” which can make consumers
susceptible to purchasing because “they won’t have the time or interest to read
about [the product] on [the] website or the back of the box.” Thus, a product
called “One a Day” gummy vitamins, which required two gummies a day for a full
dosage, is explicitly misleading.
The court rejected Chocmod’s argument that “any reasonable
consumer should ... be expected to review the packaging to determine the
country of origin, if that is something the consumer feels is important.” The front-label
representations were plausibly misleading to reasonable consumers, who aren’t
required to look beyond the front of the box. Only if reasonable consumers
couldn’t think they’d answered their questions with the front of the package—only
if they’d “necessarily require more information before reasonably
concluding that the label is making a particular representation”—do courts
consider the back as potentially resolving an inherent ambiguity. (Emphasis mine.)
The brand name “Truffettes de France,” or “Truffles from
France,” was not ambiguous and would plausibly mislead a reasonable consumer.
This was much clearer than ambiguous images or phrases addressed in other
cases. Cf. Culver v. Unilever United States, Inc., 2021 WL 2943937 (C.D.
Cal. June 14, 2021) (front labels “Paris,” Depuis 1747,” and “Que Maille”;
court explicitly distinguished “de Paris”); Eshelby v. L’Oreal USA, Inc., 664
F. Supp. 3d 417 (S.D.N.Y. 2023) (“L’Oreal Paris” on front label could lead
reasonable consumers to think that the company originated in Paris, but not that
any particular product was); La Barbera v. Ole Mexican Foods Inc., 2023 WL
4162348 (C.D. Cal. May 18, 2023) (“Phrases like ‘The Taste of Mexico!’ are at
once true in every meaningful sense and meaningless; the point is that they are
different in kind from stating the Products are from Mexico.”).
Here, there was an actual representation about the truffles’
county of origin, which was “so misleading” that a reasonable consumer “need
not search elsewhere for the truth.” Chocmod argued that the product name was
no different from French onion soup, French fries, Belgian chocolates, Mexican
burritos, or Chinese chicken salad. The court was open to the idea that “French
truffles” would be insufficient to satisfy the reasonable consumer test. But “from
France” was different. The label didn’t make representations about style or
recipe, which would be different. Moreover, “the reasonableness of a consumer’s
belief that a salad or other perishable item was shipped from another country
is incomparable to his relative belief as to a shelf-stable product like
chocolate, which was, in fact, shipped from another country—Canada.”
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