A class action suit against Costco Wholesale Corp filed by Kantrowitz, Goldhamer & Graifman and co-counsel will proceed with false advertising claims after the U.S. Court of Appeals for the Second Circuit reversed the lower court’s decision.
Class Action Cites False Advertising
The claims of consumer fraud in Eidelman v. Sun Prod. Corp. and Costco Wholesale Corp., No. 16-cv-3914 have been remanded back to the district court. This decision will have a positive impact on plaintiffs’ allegations of false and misleading advertising on Sun Products All Free & Clear detergent (“The White Bottle”) sold at Costco locations.
The plaintiff contends that all of the class action members were misled and deceived into believing that the All Free & Clear detergent products were recommended by dermatologists for those with sensitive skin, and that this false advertising caused them to pay a premium price at Costco, instead of purchasing alternative cheaper detergents.
Our attorneys appealed a summary judgment entered in March of 2021, in favor of the defendants on the plaintiffs’ claims for violations of sections 349 and 350 of New York’s General Business Law and for unjust enrichment.
Consumer Fraud Claims Under General Business Law §§ 349 and 350
The suit brought claims under New York General Business Law §§ 349 and 350, alleging that the label of the detergent in question was materially misleading as it falsely implied that the product was the #1 recommended by dermatologists for patients with sensitive type skin.
In fact, Sun Products All Free & Clear detergent is formulated with a number of common skin irritants, and these ingredients are not listed on the bottle and difficult to find online. As such, there is no way for consumers to reasonably know that the ingredients of this supposed gentle formula are potentially irritating, and not the top doctor-endorsed product.
The United States Court of Appeals for the Second Circuit Summary Order states:
“The district court therefore erred by dismissing A&H Free Clear as a comparator and thus by granting Defendants’ motion for summary judgment as to the injury element of Eidelman’s §§ 349 and 350 claim… a reasonable jury could conclude that some of the price premium which Eidelman paid was attributable to Defendants’ alleged deception and Eidelman was therefore injured within the meaning of §§ 349 and 350.”
Kantrowitz, Goldhamer & Graifman Investigating All Free & Clear Cases
KGG has an active class action litigation practice, and Partner Gary S. Graifman has spent decades successfully litigating issues of consumer fraud. If you have been impacted by the false advertising of Sun Products All Free & Clear detergent sold at Costco stores, you may be eligible for monetary compensation.
Our class action lawyers are currently investigating cases throughout the country, in addition to those near our offices in New York and New Jersey. Explore your legal options by reaching out to schedule a free consultation today.