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Smajlaj v. Campbell Soup Co.

Citations: 782 F. Supp. 2d 84; 2011 U.S. Dist. LEXIS 30852; 2011 WL 1086764Docket: Civil No. 10-1332 (JBS/AMD)

Court: District Court, D. New Jersey; March 23, 2011; Federal District Court

Narrative Opinion Summary

In this case, consumers filed a putative class action against Campbell Soup Company, alleging misleading labeling of its 'less-sodium' tomato soups. The plaintiffs claimed that the labels implied a significant reduction in sodium content compared to regular tomato soup, which was not the case. The defendants moved to dismiss the complaint, arguing preemption by the Federal Food, Drug, and Cosmetic Act (FDCA), non-misleading labeling, and lack of ascertainable loss. The court rejected the preemption argument, finding the state claims aligned with federal requirements. The plaintiffs adequately pleaded violations of the New Jersey Consumer Fraud Act (NJCFA) and breach of express warranty, as the labels could mislead reasonable consumers. The court concluded that plaintiffs demonstrated an ascertainable loss by showing a quantifiable difference between the represented and actual product value, sufficient to withstand the motion to dismiss. Additionally, the plaintiffs met the specificity requirements of Rule 9(b), detailing the alleged misleading practices. The court denied the motion to dismiss, allowing the claims to proceed, emphasizing that the plaintiffs presented plausible claims for relief under NJCFA and express warranty standards.

Legal Issues Addressed

Ascertainable Loss Requirement under New Jersey Consumer Fraud Act

Application: Plaintiffs demonstrated an ascertainable loss by showing the difference in value between the product as promised and what was delivered.

Reasoning: The CFA allows claims based on the benefit-of-the-bargain theory, where any discrepancy between the promised and delivered product suffices for a claim, regardless of whether the received product is defective.

Express Warranty Claims

Application: Plaintiffs sufficiently demonstrated that Campbell's affirmations concerning sodium content did not conform to the actual product, supporting an express warranty claim.

Reasoning: For express warranty claims, plaintiffs must demonstrate that a defendant made affirmations that became part of the bargain and that the goods did not conform to these affirmations.

Misleading Labeling under New Jersey Consumer Fraud Act

Application: The court found that the plaintiffs adequately pleaded claims under New Jersey's Consumer Fraud Act for misleading representations on Campbell's soup labels.

Reasoning: Additionally, the Court found that the plaintiffs adequately pleaded claims under New Jersey's Consumer Fraud Act and common law express warranties.

Preemption under the Federal Food, Drug, and Cosmetic Act (FDCA)

Application: The court determined that the plaintiffs' claims were not preempted by the FDCA as they did not impose different requirements than those of the FDCA.

Reasoning: The Court, however, determined that the plaintiffs' claims were not preempted since they did not impose different requirements than those of the FDCA.

Specificity Requirements under Federal Rules of Civil Procedure Rule 9(b)

Application: Plaintiffs are required to provide specific details regarding the misrepresentations to satisfy the heightened pleading standards under Rule 9(b).

Reasoning: Plaintiffs are required to provide sufficient details regarding misrepresentations and product transactions to meet the specificity demands of Rule 9(b) of the Federal Rules of Civil Procedure.