736 CONSUMER FRAUD ? Misleading Labels (2020)

In Dumont v. Reily Foods Co. et al., Case No. 18-2055 (1st Cir. August 8, 2019) plaintiff Kathy Dumont says she bought New England Coffee Company?s ?Hazelnut CrŠme? coffee because she believed it contained real hazelnuts. But, there was just one problem – the coffee contained no hazelnut at all. Outraged, Dumont brought a putative class action against the company, alleging they had violated Massachusetts consumer protection laws. Dumont claimed in May 2018 that New England Coffee Co. and New Orleans-based Reily Foods Co., which bought New England Coffee in 2009, are violating the federal Food, Drug and Cosmetic Act and Massachusetts state law in their labeling of the hazelnut-flavored coffee, arguing the front of the package did not say it did not contain any of its “characterizing ingredient,” hazelnuts.

In September 2018, the district court dismissed Dumont?s complaint without leave to amend, finding she failed to provide enough detail to show the label was potentially misleading. However, on appeal, the First Circuit?s majority opinion found that the question of whether the coffee?s name deceived consumers is a question of fact ? and reversed the dismissal.

After the First Circuit?s decision the case is headed back to the district courts, where a jury will decide whether this coffee?s label is misleading. The majority of the First Circuit panel reasoned that someone might buy ?Hazelnut CrŠme? coffee, thinking it contained nuts, without investigating the ingredient label. However, the opinion plays both sides of the fence a bit. Two judges agreed that someone who cared whether their coffee included real hazelnuts would check the ingredient list, yet they also wrote that a reasonable consumer might see the product name as adequate assurance of what they were buying.