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Church & Dwight Co. v. Clorox Co.

Citations: 840 F. Supp. 2d 717; 102 U.S.P.Q. 2d (BNA) 1453; 2012 U.S. Dist. LEXIS 268; 2012 WL 8466Docket: No. 11 Civ. 1865(JSR)

Court: District Court, S.D. New York; January 2, 2012; Federal District Court

Narrative Opinion Summary

In this case, Church & Dwight Co. (C.D.) sought a preliminary injunction against Clorox Pet Products Company to prevent the broadcast of a commercial that allegedly made misleading claims about their cat litter products. C.D. argued that Clorox's commercials, which claimed superior odor elimination by Fresh Step compared to C.D.'s Arm & Hammer products, were based on unreliable testing. The court examined Clorox's 'Jar Test,' finding it insufficiently reliable to support the commercials' claims. The test results were deemed literally false under the Lanham Act, as they implied Clorox's product was more effective than C.D.'s, which could mislead consumers. The court also determined that the commercial could cause C.D. irreparable harm by diverting customers, and therefore, granted the preliminary injunction. This decision was reinforced by the presumption of irreparable harm in cases of false comparative advertising. The court ordered further proceedings to address these issues, thereby preventing Clorox from airing the disputed advertisement. The ruling emphasized the importance of reliable testing in substantiating advertising claims, particularly when directly comparing competitive products.

Legal Issues Addressed

Falsity by Necessary Implication

Application: The court found that Clorox's claims implied broader assertions about product effectiveness that could mislead consumers.

Reasoning: The doctrine of 'falsity by necessary implication' suggests that Clorox’s assertion of carbon’s superiority over baking soda implies its litter outperforms C. D’s products.

Irreparable Harm Presumption

Application: The court presumed irreparable harm due to the direct competitive nature of the misleading advertisement against C.D.'s products.

Reasoning: Recent rulings indicate that if a plaintiff shows a likelihood of success in proving a false comparative advertisement, irreparable harm may be presumed.

Literal Falsity under the Lanham Act

Application: The court determined Clorox's advertisements were literally false under § 43(a) of the Lanham Act due to unreliable testing methods.

Reasoning: The Court finds the Jar Test results unreliable and insufficient to substantiate Clorox's claims, concluding that Clorox's assertions are literally false.

Preliminary Injunction Standards

Application: The court granted a preliminary injunction against Clorox based on C.D.'s demonstration of irreparable harm and likelihood of success on the merits.

Reasoning: The court found Clorox's supporting tests for its claims to be insufficiently reliable, indicating potential irreparable harm to C.D. if the commercial continues.

Reliability of Sensory Testing in Advertising Claims

Application: The court criticized the reliability of Clorox's sensory testing methods, impacting the validity of its advertising claims.

Reasoning: C. D criticizes the Jar Test's reliability on three grounds. First, it argues that Clorox’s claims about Fresh Step cat litter's superiority in odor elimination cannot be substantiated by the Jar Test.