McDonald’s Seeks Dismissal of Happy Meal Lawsuit

McDonald’s Corp. has filed a motion to dismiss a putative class action seeking to stop the company from advertising and selling to children its allegedly “unhealthy Happy Meals” with toys. Parham v. McDonald’s Corp., No. 11-00511 (N.D. Cal., motion filed April 18, 2011). Details about the lawsuit appear in Issue 375 of this Update. The company contends that the plaintiff lacks standing to sue under the unfair competition law, Consumer Legal Remedies Act or false advertising law and argues that the complaint is the Center for Science in the Public Interest’s “attempt to distort state consumer protection law beyond recognition” to stop McDonald’s from selling Happy Meals containing toys in California.

According to the motion, the plaintiff does not allege physical harm, reliance
on the company’s advertising (that is, “Plaintiff does not allege that her
own children saw any particular advertisement or made a single purchase
from McDonald’s”), or identify any advertisement that was allegedly false or
misleading. McDonald’s summarizes the lawsuit as one in which the plaintiff
alleges violation of consumer protection statutes based on advertising that
causes children to pester their parents. “The scope of the conduct that would
qualify as a violation of California’s consumer protection statutes under
Plaintiff’s novel theory is vast to say the least. In short, advertising to children
any product that a child asks for but the parent does not want to buy would
constitute an unfair trade practice.”

The company also argues that the plaintiff failed to sufficiently allege the
causal connection between her “loss” and the company’s practice of advertising
Happy Meals with toys and failed to include any factual allegations that
could support her claims. It seeks dismissal of the claims in their entirety.