OAKLAND, Calif. (Legal Newsline) - A federal judge has certified a class of customers who allege the "100% natural" claims on certain ChapStick products are misleading.
Judge Jeffrey White, of the U.S. District Court for the Northern District of California, issued a split ruling on Jan. 30, granting class certification under one federal rule but not another.
In effect, White's ruling certifies a class to seek injunctive relief but prevents lawyers from forming a class seeking damages under consumer protection claims.
Plaintiffs wanted one class to pursue damages that were based on studies that show how much consumers overpaid for something they considered all natural but allegedly wasn't.
"Defendants argue that Dr. (Michael) Dennis improperly includes in his conjoint study certain words and phrases that Plaintiff does not challenge," the ruling says.
Those phrases include "with argan oil," "age defying" and "with... oils and butters for softer, healthier looking lips."
"Just as this failure to isolate the Challenged Statements fatally flawed the consumer perception survey, this failure to isolate the key challenged statement renders the conjoint survey incapable of calculating a reliable price premium," the ruling says.
"Plaintiff again argues that Dr. Dennis can change the survey to isolate these representations, but cites no authority that would allow the Court to approve the survey in its current state.
"Indeed, courts facing similar issues with Dr. Dennis’s conjoint surveys have required Dr. Dennis to isolate the challenged statements in the conjoint survey on a renewed motion."
The damages class certification was denied without prejudice, meaning the plaintiffs can refile.
The suit alleges consumers relied on advertising claims that the ChapStick products were all natural only to find out they contained citric acid and hydrogenated soybean oil, among other ingredients not considered natural.
Class action lawyers are making claims under California consumer protection laws. Two days before asking for class certification, White granted their motion to dismiss nationwide class claims.