The federal district court for the Northern District of California largely denied Florida Crystals Corporation’s (Florida Crystals’) motion to dismiss a second amended complaint in a greenwashing action asserting that Florida Crystals’ claims regarding its sugar products’ climate and other environmental benefits violated California law. The court first found that the plaintiff’s allegations regarding the adverse impacts of preharvest burning concerned company-wide practices and therefore would not be dismissed just because preharvest burning was not used to produce the particular product purchased by the plaintiff. The court also found that the complaint’s allegations regarding the water impacts of Florida Crystals’ sugar production were sufficient to survive a motion to dismiss. The court also found that Florida Crystals did not establish as a matter of law that no “reasonable consumer” would understand the company’s statements regarding climate and environmental benefits to mean that the company did not engage in allegedly harmful practices. In addition, the court found that the statement “Farming to Help Save the Planet” could not be deemed puffery as a matter of law. The court granted Florida Crystals’ motion to dismiss requests for restitution and disgorgement under California’s Unfair Competition Law and for punitive damages on False Advertising Law, warranty, and unjust enrichment claims. 

Greenwashing consumer class action alleging that defendants deceived and misled consumers into purchasing their sugar products.

Merrell v. Florida Crystals Corp.

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California Federal Court Allowed Greenwashing Claims to Proceed Against Sugar Producer

Filed

United States of America

California

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California Federal Court Allowed Greenwashing Claims to Proceed Against Sugar Producer

Risk

Impacted group

Fossil fuel

Economic sector

Finance