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Snyder-Lance Inc., maker of popular Snyder of Hanover snack foods, filed a motion to dismiss a class action lawsuit that claims Snyder-Larson mislabeled its snacks as “all natural” when the products allegedly contain artificial colors and genetically modified organisms. In its motion, Snyder-Lance argues the plaintiffs did not pay extra for Snyder’s “all natural” snacks and, therefore, did not suffer any damages as a result of buying their products.
In November 2013, lead plaintiffs Todd Barron, Adele Ferrera, Matthew McDonogh, and David Korn filed a class action lawsuit against Snyder-Lance alleging Snyder’s deceptively marketed some of its snack products as “all natural” even though they allegedly contain “unnatural genetically-modified organisms (“GMOs”) and, in many cases, other unnatural artificial and synthetic ingredients.” The plaintiffs claim Snyder-Lance engaged in false advertising and intentional misrepresentation and violated Florida law. They sought injunctive relief as well as unspecified damages.
On Monday, Snyder-Lance sought to dismiss the class action lawsuit by pointing out, “Plaintiffs do not assert any personal injury; rather they claim only economic loss stemming from allegedly paying a ‘premium price’ for Snacks labeled (falsely, according to Plaintiffs) as ‘natural.'”
Snyder-Lance argues there are two problems with the plaintiffs’ claims. “Plaintiffs’ first fundamental problem is their failure to plausibly allege that any price premium is attributable to the Snacks’ ‘natural’ labeling, rather than any one of the dozens of other factors that drive how a business prices its goods,” states Snyder-Lance in its motion. “The second fundamental problem is that Plaintiffs have failed to plausibly allege that a price premium exists at all, because they have failed to plausibly allege that the Snacks they purchased were more expensive than comparable brands not labeled ‘natural,'” states Snyder-Lance.
Snyder-Lance points out that “[t]here are no allegations whatsoever that attempt to rule out other explanations for price differences between the Snacks and ‘rival brands'” in the plaintiffs’ complaint. “Nor are there any allegations that any particular representative Plaintiff paid more for the Snacks they allegedly bought — as compared to the prices of competing products available at the same outlet at the same time,” according to Snyder-Lance’s motion.
Snyder-Lance argues, “Plaintiffs’ attempt to support their ‘premium price’ allegations through five pages of comparisons between Snack prices at outlets where no representative Plaintiff shopped (such as online office supply store Quill.com), and in quantities that no representative Plaintiff purchased (55 servings of 1.5 ounces each).”
Snyder-Lance also argues that injunctive relief is not possible because “[n]ot one of the 13 representative plaintiffs is willing to allege that he or she would buy the Snacks again as currently labeled” and “[i]njunctive relief is for wrongs that are capable of repetition, and these representative Plaintiffs have conclusively alleged that repetition simply will not occur.”
The snack company also argues that the plaintiffs have not defined the term “natural” or “even what a ‘reasonable consumer’ would understand the term to mean” and “[w]ithout a willingness to allege a common understanding of what the term “natural” means, Plaintiffs cannot prove that they, or a nationwide class, were deceived.”
The plaintiffs are represented by Michael R. Reese and George V. Granade II of Reese Richman LLP, Melissa W. Wolchansky and Scott W. Carlson of Halunen & Associates, and Howard W. Rubinstein of The Law Offices of Howard W. Rubinstein PA.
The Snyder’s Snacks Class Action Lawsuit is Barron, et al. v. Snyder’s-Lance Inc., Case No. 0:13-cv-62496, in the U.S. District Court for the Southern District of Florida.
UPDATE: On Mar. 11, 2016, the Snyder’s snacks “all natural” class action settlement is now open! Click here to file a claim or visit www.snackfoodsettlement.com.
UPDATE 2: On Nov. 19, 2016, Top Class Actions readers who submitted timely and valid claims for the Snyder’s settlement started receiving checks worth as much as $10. Congratulations to everyone who got PAID!
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UPDATE 2: On Nov. 19, 2016, Top Class Actions readers who submitted timely and valid claims for the Snyder’s settlement started receiving checks worth as much as $10. Congratulations to everyone who got PAID!
UPDATE: On Mar. 11, 2016, the Snyder’s snacks “all natural” class action settlement is now open! Click here to file a claim or visit http://www.snackfoodsettlement.com.