Ghirardelli Class Action Alleges Fake White Chocolate Chips

UPDATE:

• After claims were tossed last summer, the plaintiffs have taken their class action to the Ninth Circuit, asking the appeals court to revisit their claims that Ghirardelli misled consumers about the cocoa content of its white chocolate chips in court documents filed April 6, 2021.

A class action lawsuit claims that Ghirardelli Premium Baking Chips Classic White are not really made of white chocolate, and are instead made with imitation chocolate crafted from ingredients like hydrogenated and palm oils.

Plaintiffs Linda Cheslow and Steven Prescott say they purchased the white chocolate chips because they believed that they were made of genuine white chocolate.

The customers claim that they were misled by Ghirardelli’s reputation as a premium chocolate brand, and the fact that all of the other similar chips, including milk chocolate, dark chocolate, and semi-sweet chocolate, are made with chocolate.

The Ghirardelli white chocolate chips class action lawsuit claims that Ghirardelli intentionally uses ambiguous labeling to trick customers into thinking that the white chips are made from white chocolate.

This Ghirardelli class action comes five years after a similar case reached a settlement agreement in which Ghirardelli agreed to change its labeling practices when it came to its white chips.

Under the settlement reached in Miller, et al. v. Ghirardelli Chocolate Company, the chocolate company agreed not to use the phrase “Classic White” unless it was part of the phrase “Classic White Chips.” In addition, Ghirardelli agreed not to use the phrases “chocolate indulgence,” “baking chocolate” or “all natural.” However, these packaging changes were only enforced for three years after this particular settlement received final approval.

The plaintiffs in this current Ghirardelli class action state that even labeling its white chips as being “Premium Baking Chips” and “Classic White Chips,” is deceptive as the company relies on customers assuming that this means they are made with white chocolate.

The customers explain that Ghirardelli is the number one premium brand of chocolate in the U.S., according to its now 2018 Annual Shareholder Report. Allegedly, the company proudly touts this, and makes much of its profits off of its reputation as being a producer of “premium,” high quality products.

Cheslow and Prescott say that until recently, Ghirardelli included real white chocolate in their white chips. They say that the company used actual white chocolate to create a loyal customer base and “propel the company to the self-described #1 premium chocolate brand in the U.S.”

Allegedly, the company then changed the recipe and completely eliminated white chocolate from the ingredients, pulling a “bait and switch.”

The customers in the white chocolate class action lawsuit say that the white chips are made from imitation white chocolate that is made from ingredients like hydrogenated and palm oils.

Allegedly, customers seek out Ghirardelli products specifically because they believe that the products are “premium.”

However, the customers say that the white chips are not premium, because the imitation chocolate is of a lower quality, less expensive, and less desirable than the real white chocolate the customers were expecting.

Cheslow and Prescott say that they and many other customers were financially injured by the false advertising because had they known that the white chips did not really contain white chocolate, they would not have purchased them at all.

The Ghirardelli fake white chocolate class action lawsuit seeks damages on behalf of all other similarly affected customers.

The plaintiffs also seek injunctive relief, saying that they would purchase the white chips again in the future if they could be assured that the chips contained white chocolate as implied.

A California federal judge dismissed the class action lawsuit in July of 2020. The judge pointed to a customer survey used by the plaintiffs that only contained a picture of the front label of the Ghirardelli white chocolate chips at issue.

“By omitting the back panel, the survey deprived respondents of relevant information, namely the ingredient list,” stated the order tossing the claims.

The plaintiffs have since appealed the dismissal to the Ninth Circuit, arguing in court documents that the lower court tossed their claims far too early.

“This was incorrect,” stated the plaintiffs’ appeal of the lower court’s reasoning. “‘White,’ as used in the product name, is shorthand for the compound noun ‘white chocolate.'”

In addition, the plaintiffs said consumers were sure to be misled by pictures of white chocolate chips included on the product’s packaging.

“The images of what would commonly be understood to be white chocolate chip cookies and loose white chocolate chips amplify the implied message that the product contains white chocolate,” stated court documents.

Top Class Actions will continue to monitor this lawsuit for any further updates.

Have you purchased Ghirardelli Premium Baking Chips Classic White, believing them to be made out of white chocolate? Tell us in the comments below.

The customers are represented by Ryan J. Clarkson, Shireen M. Clarkson, Bahar Sodaify, and Matthew T. Theriault of Clarkson Law Firm PC.

The Ghirardelli Premium White Baking Chips Class Action Lawsuit is Linda Cheslow, et al. v. Ghirardelli Chocolate Company, et al., Case No. 20-16576, in the U.S. Court of Appeals for the Ninth Circuit.

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