Pretzel Crisps ‘All Natural’ Class Action Will Continue

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The Snack Factory LLC can’t escape a class action lawsuit, alleging that it did not label its Pretzel Crisps correctly by using the phrase “all natural” when they do contain artificial ingredients, a Florida federal judge says.

U.S. District Judge James Cohn dismissed kept most of the claims against Snack Factory filed by plaintiff Joshua Seidman in his class action lawsuit filed in November 2014.

Seidman alleges in his November Pretzel Crisps class action lawsuit that Snack Factory tries “to pass its products off as ‘all natural’ even though they are not.”

While the Pretzel Crisps’ bags include statements that the product is “all natural,” Seidman claims in his class action lawsuit that “they contain unnatural, synthetic and/or artificial ingredients, including but not limited to maltodextrin, soybean oil and in at least one variety, dextrose and caramel color.”

Seidman is charging Snack Factory with violating Florida’s Deceptive and Unfair Trade Practices Act, negligent misrepresentations, breach of express warranty, violating the Magnuson-Moss Warranty Act and unjust enrichment. He is also asking that the court prevent Snack Factory from engaging in the “described wrongful acts and practices.”

In its motion to dismiss, Snack Factory argued that Seidman did not allege any harm because of the “all natural” claims. In addition, the company argued that Seidman’s “demands for injunctive and declaratory relief are not proper.”

Snack Factory also argued that the express warranty allegations under the Magnuson-Moss law should be dismissed because the phrase “all natural” is not an express warranty under that statue, but “merely a product description.” Lastly, Snack Factory does not agree with the class allegations.

Judge Cohn said that Seidman’s claims for damages were sufficiently pled. Seidman argued that he was injured by paying “a premium price for an all-natural product that he did not receive,” and because the Pretzel Crisps are mislabeled, “they are worthless and he is entitled to a full refund.”

The Florida federal judge says that “the Court concludes that it is plausible that falsely touting a product as ‘all natural’ would wrongfully raise the demand for that product and, consequently, its price.”

However, Judge Cohn says that he agrees with Snack Factory “that Plaintiff lacks standing to pursue the requested injunctive relief because he has not alleged intent to purchase defendant’s Pretzel Crisps in the future.”

For this reason, Seidman “cannot show any likelihood of future injury sufficient to afford him standing to enjoin defendant from continuing its purported mislabeling.”

And the Florida federal judge explains that, according to a ruling from the 11th Circuit Court of Appeals that “injunctions regulate future conduct” and someone can only seek injunctive relief if there is the “threat of future injury.” However, he dismissed the injunctive relief claims without prejudice, which allows Seidman to refile the claim.

However, Seidman’s “claim for declaratory relief will survive” based on the Florida consumer protection law, which allows “him to obtain declaratory relief in the absence of such a showing.”

As for the Magnuson-Moss Warranty claims, Judge Cohn said that they will continue because such warranty claims “depends on a state law claim for breach of warranty, and “under Florida law, ‘any description of [a good] which is made as part of the basis of the bargain creates and express warranty that the goods shall conform to the description.”

Therefore, “under Florida law, [Snack Factory’s] alleged packaging does create an express warranty.”

The Florida federal judge kept the class definition at this point, saying it can be addressed “at the class certification stage.”

Seidman has until April 2 to file an amended complaint.

Seidman is represented by Joshua H. Eggnatz and Michael J. Pascucci of the Eggnatz Law Firm.

Snack Factory is represented by Robert J. Cousins and Ian B. Miller of Quintairos Prieto Wood & Boyer PA.

The Pretzel Crisps All Natural Class Action Lawsuit is Seidman v. Snack Factory LLC, Case No. 0:14-cv-62547, in the U.S. District Court for the Southern District of Florida.