SAN FRANCISCO (Legal Newsline) – What lawyers think people assume to be white chocolate chips are actually correctly labeled “white chips,” a judge has ruled in dismissing a class action lawsuit against Ghirardelli.
Judge Phyllis Hamilton reached that ruling April 8, and other candy companies facing similar lawsuits are already filing her decision with their respective judges. Plaintiffs lawyers have jumped on the chance to sue over what is commonly thought of as white chocolate, but Hamilton’s ruling could prove key for defendants.
For example, Hershey’s recently notified the New York judge hearing the lawsuit against it over white Kit-Kats. The package doesn’t say “white chocolate” – just “white.”
Plaintiffs in the Ghirardelli lawsuit claimed confusion because white chips were located in the grocery store next to the company’s other chocolate products.
“(T)he ultimate impact of such placement is not particularly clear,” Hamilton wrote. “Plaintiffs argue that placement of the product near other Ghirardelli’s products means that white chips are chocolate.
“It could just as easily mean that the products are all made by the same manufacturer and therefore grouped together to distinguish from products made by other manufacturers.
“It is up to the consumer to pick up the product and determine what it contains and whether he or she wants that product.”
Not to mention that if a product is missing the word “chocolate,” it is more conspicuous when placed next to other products that have that word, Hamilton ruled. She also said the ingredient list on the package would cure any consumer’s confusion, if he or she read it.
“Plaintiffs and the general consuming public are not free to ignore the ingredient list that does not include the words chocolate or cocoa,” Hamilton wrote.
“Accordingly, it is not plausible that a reasonable consume would be deceived by the product’s packaging.”
Hamilton had reservations about whether allowing the plaintiffs to amend their complaint will help their case but she is allowing it anyway.
The case involved California law and the Kit-Kat case was brought under New York law, but that difference doesn’t mean “reasonable consumers” would be misled by Hershey’s packaging, the company says.
From Legal Newsline: Reach editor John O’Brien at john.obrien@therecordinc.com.