Nature’s Way Faces Revived Coconut Oil Class Action Lawsuit

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Nature’s Way will again face claims for injunctive relief now that a federal judge has reversed a previous dismissal of a class action alleging the company mislabels its coconut oil with representations of health benefits.

In an order filed Tuesday, U.S. District Judge William Q. Hayes reversed his previous dismissal of plaintiff Sherry Hunter’s claim for injunctive relief.

The injunction Hunter sought would have required Nature’s Way to stop the allegedly deceptive advertising of its coconut oil, destroy all allegedly misleading materials, and conduct a corrective advertising campaign.

Judge Hayes originally concluded Hunter had no standing to seek injunctive relief because she did not allege she would purchase Nature’s Way coconut oil in the future. Since she was not in any apparent danger of being misled again, she lacked standing to seek an injunction, the judge reasoned.

Hunter moved for reconsideration in November 2017, asking the judge to apply a new decision by the Ninth Circuit Court of Appeals.

In that case, the appeals court noted that just because a consumer knows a product’s advertising was false in the past doesn’t necessarily mean they know it will be false in the future. The consumer could still be at risk for being misled again, possibly giving them the standing they need to seek injunctive relief.

Judge Hayes determined Hunter still doesn’t have standing under the new Ninth Circuit decision, as she still has not alleged any plans to buy Nature’s Way coconut oil again. But the judge also said she should have leave to amend her complaint to rectify the defect.

“At this stage in the proceedings, the court cannot conclude that plaintiff is precluded from alleging facts showing that she faces an imminent or actual threat of future harm that is sufficient for her to have standing to bring claims for injunctive relief,” the judge wrote.

Hunter has 20 days from the date of the order in which to amend her complaint.

Hunter filed this Nature’s Way class action lawsuit in 2016, claiming the defendants have no business representing their coconut oil as a healthy food when it contains 100 percent fat and 93 percent saturated fat.

Labeling for Nature’s Way coconut oil allegedly describes it as “inherently healthy.” Representations challenged by Hunter claim coconut oil has a “variety of healthy uses” and is “ideal for exercise and weight loss programs.”

“[D]efendants market and advertise the products as both inherently healthy, and healthy alternatives to butter, margarine, and other oils, even though the products’ total and saturated fat content render them both inherently unhealthy, and less healthy alternatives,” the complaint says.

Hunter is represented by attorneys Jack Fitzgerald, Trevor M. Flynn and Melanie Persinger of The Law Office of Jack Fitzgerald PC, and by Paul K Joseph of The Law Office of Paul K. Joseph PC.

The Nature’s Way Coconut Oil False Advertising Class Action Lawsuit is Hunter v. Nature’s Way Products LLC and Schwabe North America Inc., Case No. 3:16-cv-00532, in the U.S. District Court for the Southern District of California.

UPDATE: On July 22, 2019, Nature’s Way and a group of customers have reached a $1.8 million settlement deal that, if approved, would end class action claims that the company falsely advertises its coconut oil as being healthy.

UPDATE 2: September 2019, the Nature’s Way coconut oil class action settlement is now open. Click here to file a claim.

UPDATE 3: On Feb. 15, 2020, Top Class Actions viewers started receiving checks from the Nature’s Way Coconut Oil class action settlement worth $11.15. Congratulations to everyone who filed a claim and got PAID!