RICHARD H. KYLE, District Judge.
This lawsuit concerns hunting clothing manufactured and/or sold by Defendants A.L.S. Enterprises, Inc. ("ALS"), Cabela's, Inc., Cabela's Wholesale, Inc., and Gander Mountain Co. ("Gander Mountain") (collectively, "Defendants"). Plaintiffs
Because game animals have an acute sense of smell, there is a demand for odor-controlling clothing in the hunting market. (Sesselmann Decl. ¶ 2.) As a result, ALS patented and began selling hunting clothing with embedded activated carbon ("carbon-embedded clothing") under the brand name "Scent-Lok." (Id. ¶¶ 3-5.) Activated carbon has the ability to adsorb human odor. (Id. ¶ 3.) ALS licenses its patent
Defendants have published countless advertisements promoting their carbon-embedded clothing. Almost all of these advertisements utilize the slogans "odor-eliminating technology" or "odor-eliminating clothing." (Wilde Decl. Exs. 17-18, 24, 28; Grumbles Decl. Ex. 32.)
Defendants have also published numerous advertisements stating that purchasers can "reactivate" carbon-embedded fabric in a standard clothes dryer after the activated carbon becomes saturated with odor. (Id. Exs. 16, 21-22.) Some of these advertisements claim that carbon-embedded clothing can be reactivated for further use without describing the extent to which odors can be removed from the activated carbon. (Id. Ex. 21.) Other advertisements state that reactivation will make the clothing "like new" or "pristine." (Id. Exs. 16, 22.)
Plaintiffs claim that all of the above-referenced advertisements are false and/or misleading because Defendants' carbon-embedded clothing cannot "eliminate" odors and cannot be reactivated to be "like new" or "pristine." Both Plaintiffs and Defendants have consulted with experts who have conducted extensive laboratory testing on Defendants' clothing. While the results of such testing differ dramatically, Plaintiffs' and Defendants' experts agree that carbon-embedded clothing cannot eliminate 100% of a hunter's odor. (Leach Decl. Exs. 28, 38; Hartman Dep. Tr. at 213, 225-29; Turk Dep. Tr. at 101.) Moreover, the experts agree that carbon-embedded clothing, once saturated with odor, cannot be reactivated to be "like new" or "pristine." (Hartman Dep. Tr. at 168; Leach Decl. Exs. 38, 41.)
On September 13, 2007, Plaintiffs commenced the instant action claiming that Defendants' advertising is false and misleading in violation of various Minnesota state laws. Each Defendant now moves for summary judgment on all of Plaintiffs' claims. Plaintiffs oppose these Motions and request partial summary judgment and injunctive relief.
Summary judgment is proper if, drawing all reasonable inferences in favor of the nonmoving party, there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party bears the burden of showing that the material facts in the case are undisputed. Id. at 322, 106 S.Ct. 2548; Mems v. City of St. Paul, Dep't of Fire & Safety Servs., 224 F.3d 735, 738 (8th Cir.2000). The Court must view the evidence, and the inferences reasonably drawn from it, in the light most favorable to the nonmoving party. Graves v. Ark. Dep't of Fin. & Admin., 229 F.3d 721,
Where, as here, the Court confronts cross-motions for summary judgment, this approach is only slightly modified. When considering the defendant's motion, the Court views the record in the light most favorable to the plaintiff, and when considering the plaintiff's motion, the Court views the record in the light most favorable to the defendant. Int'l Bhd. of Elec. Workers, Local 176 v. Balmoral Racing Club, Inc., 293 F.3d 402, 404 (7th Cir. 2002). "Either way, summary judgment is proper if the record demonstrates that there is no genuine issue as to any material fact." Id.
Plaintiffs assert that Defendants' advertising is false and misleading in violation of the Minnesota Consumer Fraud Act (Claim 1), the Minnesota Uniform Deceptive Trade Practices Act (Claim 2), and the Minnesota Unlawful Trade Practices Act (Claim 3). (SAC ¶¶ 86-114.) The parties agree that the appropriate analysis for these claims is the same as that applied under the Lanham Act. (Pls. Mem. in Supp. at 14 n. 8; ALS Mem. in Supp. at 13.) To prevail on a false-advertising claim under the Lanham Act, a plaintiff must prove:
Surdyk's Liquor, Inc. v. MGM Liquor Stores, Inc., 83 F.Supp.2d 1016, 1022 (D.Minn.2000) (Doty, J.).
False statements actionable under the Lanham Act fall into two categories: "(1) commercial claims that are literally false as a factual matter, and (2) claims that may be literally true or ambiguous but which implicitly convey a false
To determine whether an advertisement is not literally false but misleading, the Court must asses whether "the advertising actually conveyed [an] implied message and thereby deceived a significant portion of the recipients." Id. at 1182. Thus, "the success of the claim usually turns on the persuasiveness of a consumer survey." Id. at 1183.
As a preliminary matter, Defendants argue at length that the advertisements the Court may consider are limited to those Plaintiffs specifically recall reviewing and relying upon in making their purchases. Specifically, Defendants assert that the Court is limited to finding whether the terms "elimination" and "reactivation" are literally false or misleading, as these are the only statements Plaintiffs recall with specificity. (ALS Mem. in Opp'n at 31-45; ALS Mem. in Supp. at 36-38; Gander Mem. in Supp. at 6-8; Cabela's Wholesale Mem. in Supp. at 6-9.) The Court does not agree.
For the purposes of the present Motion, Plaintiffs argue that a variety of Defendants' advertisements are literally false and therefore request an injunction. When an advertisement is literally false, the Court "need not consider the remaining Lanham Act ... elements in order to grant Plaintiffs injunctive relief." Minn. Life Ins. Co. v. AXA Invest. Mgr., Civ. No. 03-4383, 2005 WL 1475336, at *7 (D.Minn. June 22, 2005) (Frank, J.). Thus, Plaintiffs are entitled to injunctive relief if literal falsity is established.
Defendants assert that even if Plaintiffs have statutory standing to obtain injunctive relief, they lack constitutional standing to challenge advertisements they do not recall reviewing with specificity. "To show Article III standing, a plaintiff has the burden of proving: (1) that he or she suffered an injury-in-fact, (2) a causal relationship between the injury and the challenged conduct, and (3) that the injury likely will be redressed by a favorable decision." Pucket v. Hot Springs Sch. Dist. No. 23-2, 526 F.3d 1151, 1157 (8th Cir.2008) (internal quotation marks and citation omitted). Defendants argue that Plaintiffs cannot satisfy the second element without establishing the precise advertisements and language relied upon.
The Court finds that Plaintiffs' inability to recall the specific advertisements relied upon with precision does not divest them of constitutional standing to challenge Defendants' advertising campaign. The record indicates that Plaintiffs were exposed to countless advertisements, stemming from all Defendants, and do recall reading and relying upon several specific advertisement claims, other than the terms "elimination" and "reactivation." (Brosi Dep. Tr. at 29, 32, 40; Brosi Decl. ¶¶ 3-8; Buetow Dep. Tr. at 45, 65; Buetow Decl.
For purposes of the present Motions, Plaintiffs and Defendants have each submitted to the Court what they believe to be a representative set of advertisements. (Leach Decl. Exs. 7-22, 49, 53, 55-56; Wilde Decl. Exs. 15-26, 28-31, 34; Grumbles Decl. Exs. 4, 13-14, 25, 32-33.) Plaintiffs assert that two general claims made in these advertisements are literally false and misleading: the "elimination" claim and the "reactivation" claim. The Court addresses each below.
Defendants' advertisements claim that their carbon-embedded clothing has the ability to "eliminate" odor. This claim is communicated to consumers in numerous ways described below.
Several of Defendants' advertisements simply utilize the slogans "odor-eliminating technology" or "odor-eliminating clothing" without further elaborating on the clothing's ability to control odor. (Wilde Decl. Exs. 17-18, 24, 28; Grumbles Decl. Ex. 32.) Other advertisements utilize these slogans and other phrases such as "eliminates all types of odor" or "odor elimination." (Wilde Decl. Exs. 20, 21, 23, 26.) The Court finds these advertisements to be literally false as a matter of law. While the parties' experts have different opinions regarding the extent to which carbon-embedded clothing will reduce odor, all agree that the clothing cannot eliminate odor, even when new.
The word "eliminate" is subject to only one reasonable interpretation-complete elimination. In determining the meaning of challenged advertisements, a court may reference dictionary definitions. See Am. Italian Pasta Co. v. New World Pasta Co., 371 F.3d 387, 391 (8th Cir.2004) (referencing a dictionary definition of "favorite"). The Compact Oxford English Dictionary provides that the word "eliminate" means "[t]o expel, exclude, remove, get rid of." The Compact Oxford English Dictionary
Defendants have submitted several dictionary definitions equating the word "eliminate" with "remove." (Andre Decl. Exs. 12-14.) Defendants argue that because their carbon-embedded clothing removes a substantial amount of odor, its advertisements are not literally false. However, the Court finds that the use of the word "remove" would also be literally false if used in Defendants' advertisements. Here an example is helpful. If an advertisement states that a product will remove roaches from a home, the only reasonable expectation would be that all roaches would be removed, not just some.
Several of Defendants' advertisements go beyond the use of the word "eliminate" or "elimination" to emphasize that carbon-embedded clothing will eliminate all human odor. (Wilde Decl. Exs. 22-23; Leach Decl. Exs. 7-18, 22, 55; Grumbles Decl. Exs. 4, 13-14.) Such advertisements use phrases such as, "complete scent elimination," "scent-free," "works on 100% of your scent (100% of the time)," "all human scent," "odor is eradicated," or graphics demonstrating that human odor cannot escape carbon-embedded fabric. (Grossi Decl. Ex. 23; Leach Decl. Exs. 7, 15, 17, 18; Grumbles Decl. Ex. 13.)
Because carbon-embedded clothing cannot eliminate odor, the above-referenced advertising is literally false. See POM Wonderful LLC v. Purely Juice, Inc., No CV-07-02633, 2008 WL 4222045, at *11 (C.D.Cal. July 17, 2008) (holding that the phrase "100% pomegranate" was literally false when a juice product contained substances other than pomegranate juice). Moreover, Defendants' graphics, unambiguously demonstrating that odor cannot escape carbon-embedded fabric, are also literally false. See Time Warner Cable, Inc. v. DirectTV, Inc., 497 F.3d 144, 148 (2d Cir.2007) ("[A]n advertisement can be literally false even though it does not explicitly make a false assertion, if the words or images, considered in context, necessarily and unambiguously imply a false message.").
Finally, several of Defendants' advertisements use the slogans "odor-eliminating technology" or "odor-eliminating clothing," but further qualify this language with words indicating that carbon-embedded
The Court finds that these advertisements are not literally false. When an advertisement is subject to more than one reasonable interpretation, it cannot be literally false. Time Warner, 497 F.3d at 158. In this case, while a consumer may understand these advertisements to mean that carbon-embedded clothing can eliminate odor based upon slogan usage, the qualifying language may lead reasonable consumers to understand that the clothing can only reduce odor. Accordingly, such advertisements are not literally false.
Plaintiffs assert that these advertisements, if not literally false, are still actionable because they are misleading. However, an advertisement cannot be "misleading" unless the evidence indicates that a "significant portion" of consumers were actually deceived by the advertising. United Indus., 140 F.3d at 1182. As evidence of consumer deception, Plaintiffs' offer their own testimony, along with that of several plaintiffs in related cases. (Pls. Mem. in Opp'n to ALS Mot. at 40-42.) However, this testimony is "insufficient to create a credible inference of confusion." DeRosier v. 5931 Bus. Trust, 870 F.Supp. 941, 951 (D.Minn.1994) (Doty J., adopting Report & Recommendation of Erickson, M.J.) (holding that the testimony of eight affiants was insufficient to create an inference of consumer confusion); accord Davis v. Walt Disney Co., 393 F.Supp.2d 839, 846 (D.Minn.2005) (Frank, J.) ("[A] small group of [plaintiff's] friends, allies, and supporters [does not constitute] a valid survey group from which to determine whether actual confusion exists.").
In addition to claiming that their carbon-embedded clothing "eliminates" odor, the challenged advertisements also state that the clothing can be "reactivated" using a standard clothes dryer. Like the "elimination" claim, the "reactivation" claim has been communicated to consumers in numerous ways. Plaintiffs assert that the "reactivation" claims made in Defendants' advertising are literally false because the expert testimony has established that carbon-embedded clothing cannot be reactivated to be "like new."
Many of Defendants' advertisements simply state that carbon-embedded clothing can be "reactivated" for future use without describing the extent of the reactivation. (Leach Decl. Exs. 16, 21, 55-56.) For example, one advertisement states "[t]o reactivate you simply put Scent-Lok in your clothes dryer." (Id. Ex. 56.) Plaintiffs assert that advertisements like this communicate to consumers that carbon-embedded clothing can be reactivated to a "like new" condition. (Pls. Mem. in Supp. at 22.) The Court does not agree.
The Court finds that the use of the term "reactivate," or any derivative thereof, is not literally false because it is subject to more than one reasonable interpretation. The word "reactivate" does not unambiguously convey a complete or total restoration of the carbon-embedded clothing. Instead, the word "reactivate" could reasonably be interpreted to mean that the clothing can be restored to some extent for continued beneficial use. According to the American Heritage Dictionary, "reactivate" means "[t]o restore the ability to function or the effectiveness of." The American Heritage Dictionary 1455 (4th ed. 2000). Similarly, the Compact Oxford English Dictionary provides that "reactivate" means "[t]o make active or operative again." The Compact Oxford English Dictionary 258 (2d ed. 1989). Therefore, while a total restoration of the carbon-embedded clothing is one reasonable interpretation of the term "reactivate," it is not the only interpretation. Therefore, it cannot be literally false. Time Warner, 497 F.3d at 158. Moreover, for the reasons described above, such advertisements are not misleading as a matter of law because Plaintiffs have failed to put forth evidence indicating that a significant portion of consumers were deceived by the advertising. United Indus., 140 F.3d at 1182. Accordingly, such advertisements are not actionable.
In addition to the advertisements simply stating that carbon-embedded clothing can be reactivated, Defendants published some advertisements which state that reactivation will make the clothing "like new" or "pristine." (Leach Decl. Exs. 16, 22.) Such advertisements are literally false, as all experts agree that carbon-embedded fabric, once used, cannot be fully reactivated to be "like new."
Defendants do not dispute that such advertisements are literally false,
In Minnesota, the "sole statutory remedy for deceptive trade practices is injunctive relief." Simmons v. Modern
In this case, there is no evidence indicating a risk of future harm to Plaintiffs. In fact, because Plaintiffs are aware of Defendants' false advertising, they are unlikely to be deceived by such advertising in the future. Indep. Glass Ass'n, Inc. v. Safelite Group, Inc., Civ. No. 05-238, 2005 WL 3079084, at *2 (D.Minn. Nov. 16, 2005) (Montgomery, J.) (noting that because the plaintiff was now aware of the deceptive trade practices, he was "likely to be vigilant in the future," rendering injunctive relief inappropriate). Accordingly, Plaintiffs' MDTPA claim will be dismissed.
Gander Mountain and Cabela's Wholesale assert that some Plaintiffs do not have constitutional standing to assert a claim against them because such Plaintiffs did not purchase their clothing or rely on their advertising.
Cabela's, Inc. asserts that no Plaintiff has constitutional standing to assert a claim against it because it has "not been involved with the marketing or sale of odor adsorbing clothing" since December 1999, years before any Plaintiff made his purchases. (Cabela's, Inc. Mem. in Supp. at 1 (citing Kelsey Decl. ¶ 4).) However, Plaintiffs assert that Cabela's, Inc. is involved with the advertising of carbon-embedded clothing. Specifically, Plaintiffs highlight the deposition testimony of Everett
Based on the foregoing, and all the files, records and proceedings herein,