Putative Class Claims Diamond Foods’ Tortilla Chips Are Not Natural
A California resident has filed a putative statewide class action in a California federal court against Diamond Foods, Inc., alleging that the company misleads consumers by prominently labeling its line of TIAS Tortilla Chips® as “All Natural” when they contain artificial ingredients such as maltodextrin and/or dextrose. Surzyn v. Diamond Foods, Inc. No. 14-136 (N.D. Cal., filed January 9, 2014). The complaint has been crafted to avoid some of the pitfalls that other plaintiffs have encountered bringing similar claims, including express references to the defendant making “the exact same ‘All Natural’ claim in the exact same prominently displayed location on the front packaging,” to forestall a court finding that the plaintiff lacks standing to pursue claims for products she did not actually purchase.
Alleging economic injury, that is, not receiving the benefit of the bargain, and expressly not seeking “to contest or enforce any state law that has requirements beyond those required by Federal laws or regulations,” the plaintiff claims that the “All Natural” food product representation “is material to a reasonable consumer” and that Consumers Union has found that 86 percent of consumers “expect a ‘natural’ label to mean processed foods to not contain any artificial ingredients.” She also focuses on the package labeling for the products and avoids any reference to website product representations.
The plaintiff alleges 14 specific injuries as a direct result of deceptive labeling, including consumers receiving products that did not measure up to their expectations; ingesting a substance other than what was represented; being denied “the benefit of knowing what they ingested” and “of truthful food labels”; unwittingly supporting “an industry that contributes to environmental, ecological, and/or health damage”; and being “denied the benefit of the beneficial properties of the natural foods promised.”
Claiming negligent representation and violations of the state’s Unfair Competition Law, False Advertising Law and Consumers Legal Remedies Act, the plaintiff seeks to enjoin the defendant from making “natural” claims for the products, restitution, disgorgement, actual damages, attorney’s fees, and costs.
Issue 510
