Triple Leaf Reaches Non-Monetary False Ad. Class Action Settlement

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A false advertising class action settlement was reached between a group of consumers and Triple Leaf Tea Inc. over allegedly saying its teas are a safe diet aid, in which the tea company is being asked to make changes to its labels.

A joint motion for preliminary approval of the class action settlement was filed by plaintiff Eunice Johnson with U.S. District Judge Maxine M. Chesney in a California federal court on Friday.

This false advertising class action settlement resolves the allegations that its teas are falsely advertised as weight loss aids.

According to the terms of the settlement, Triple Leaf will change the name of its Dieter’s Green tea to Diet Green and Super Slimming tea will become Super Slim. There is no monetary amount that will be paid to settle the Triple Leaf Tea class action lawsuit. The injunctive relief is considered sufficient by Johnson.

“The harm that these statutes seek to redress is false or deceptive advertising in the marketplace,” the motion explains. “The settlement agreement accomplishes this goal.”

If class members disagree with the terms, they are always welcome to opt-out, the class action settlement says.

In addition, “it would be cost prohibitive to implement a claims procedure to refund the small amount representing the difference between the value of the product as advertised and the value of the product as purchased because claims-based settlement administration, not including the amount of any monetary relief to the fund, routinely costs in excess of $250,000.”

Also, the agreement explains that since Triple Leaf is a small family owned and operated business, their net profits are low.

By changing the labels, the class action settlement explains, “Class Members are receiving substantial direct benefit” as they will no longer be injured by the alleged false advertising.

“As proof of this claim, the Federal Trade Commission has recognized that ‘fraudulent weight loss products cost consumers millions of dollars each year,'” the false advertising class action settlement explains.

The FTC has made an effort to curtail this problem by starting a campaign called “Gut Check.” The purpose of the campaign is to “curb fraudulent weight loss products through consumer education and removing false advertising from the marketplace.”

“Thus, the FTC, the primary federal law enforcement agency for deceptive advertising, has recognized that removing false advertising from the marketplace is ‘the most effective front-line defense’ to protect consumers,” the Triple Leaf Tea class action settlement says. “The settlement achieves that FTC goal.”

As part of the class action settlement, Triple Leaf will cover the attorneys’ fees for Johnson, and Johnson will receive $1,500 as the Class Representative.

In addition to the name changes to two of its teas, Triple Leaf will also get rid of statements on its packaging such as “Remember when dieting to follow a balanced weight loss diet . . .” and “The Chinese System of herbology has been recorded in ancient texts which are studied and employed even today.”

Triple Leaf will also remove the ingredient whorled mallow, which was highlighted in the class action lawsuit. Johnson had alleged that it could cause heart palpitations, fatigue and muscle spasms. The tea company will also add a warning that the ingredient senna leaf can lead to “abdominal pain, cramping and loose or watery stools.”

The changes are to be made in 18 months from when the class action settlement is approved.

Triple Leaf tried to have the false advertising class action lawsuit dismissed, but it was denied by Judge Chesney in September 2014.

Johnson is represented by Ronald A. Marron, Skye Resendes and Alexis M. Wood of the Law Offices of Ronald A. Marron APLC.

Triple Leaf Tea is represented by Dion N. Cominos and Ryan B. Polk of Gordon & Rees LLP.

The Triple Leaf Tea False Advertising Class Action Lawsuit is Eunice Johnson v. Triple Leaf Tea Inc, Case No. 3:14-cv-01570, in the U.S. District Court for the Northern District of California.