Judge Approves False Ad Jamba Juice Class Action Settlement

A California federal judge has approved a class action settlement plaintiffs have reached with Jamba Juice Company over allegations that its Jamba Juice Smoothie Kits are mislabeled as “all natural.”

U.S. District Judge Jon S. Tigar granted preliminary approval of the Jamba Juice class action settlement on March 18, which the parties said “they had settled . . . in principle, and subsequently filed a motion for preliminary approval of a class action settlement for injunctive relief.”

The parties in the Jamba Juice false advertising class action lawsuit had reached the class action settlement in December 2014, in which it was decided that Jamba Juice would remove the phrase “all natural” from its smoothie kits, after alleging that the products included ingredients that are not deemed natural such as gelatin and xanthum gum.

Judge Tigar explains that before he can decide on whether or not he should approve the class action settlement that he must first answer the question of whether or not plaintiff Aleta Lilly has standing to file the Jamba Juice false advertising class action lawsuit, which he concludes that she does.

“Courts in this district have grappled with the question of when a consumer class may be certified for the purposes of obtaining injunctive relief against deceptive product labeling under Rule 23(b)(2),” the California federal judge wrote in his order granting preliminary approval to the Jamba Juice class action lawsuit.

“Some courts have held that once a consumer is aware that a label is misleading, she can never have standing to seek injunctive relief, because there is no danger that she will be misled in the future,” he added.

However, Judge Tigar concludes that if that were the case it “would effectively preclude consumers from ever obtaining prospective relief against mislabeling.”

In addition, the California federal judge argues that “when a consumer discovers that a representation about a product is false, she doesn’t know that another, later representation by the same manufacturer is also false. She just doesn’t know whether or not it’s true. A material representation injures the consumer not only when it is untrue, but also when it is unclear whether or not it is true.”

He argues that Jamba Juice could change the product to match the “all natural” claim on the packaging, but because of the false label in the past, Lilly would continue to be unsure of whether or not it was true.

“In fact, knowing about the previous misrepresentation, she probably won’t buy it — even though it is now precisely the product she wants above all others. So, while other consumers may purchase the (now correctly labeled) product, our consumer — the person most likely to suffer future injury from the misrepresentation — will be deprived of it,” Judge Tigar wrote.

Under the terms of the class action settlement, Jamba Juice is required to update the smoothie kit labels by March 31, removing the words “all natural.” However, the company is not required to remove products that are currently on the shelves or discontinue any packaging it may already have in its inventory before the class action settlement receives final approval.

Judge Tigar concludes that the Jamba Juice class action settlement is “substantively fair.”

Tigar had certified the class in the Jamba Juice class action lawsuit on Sept. 18, 2014, which included California residents that had purchased Mango-a-go-go, Strawberries Wild, Caribbean Passion, Orange Dream Machine and Razzmatazz Jamba Juice smoothie kits.

The Jamba Juice Smoothie Kit Class Action Lawsuit is Aleta Lilly, et al. v. Jamba Juice Company, et al., Case No. 13-cv-02998, in the U.S. District Court for the Northern District of California.