Tomasella v. The Hershey Co.

United States Court of Appeals for the First Circuit · June 16, 2020 · No. 19-1130, 19-1131, 19-1132

Summary

The First Circuit affirmed dismissal of Chapter 93A claims alleging that chocolate manufacturers' failure to disclose child labor in their cocoa supply chains on product packaging was an unfair or deceptive practice. The court held that the omission was a "pure omission" not actionable as deceptive because it did not create a misleading impression or half-truth, and did not concern a central feature of the product. The unfairness claim failed because the omission was not within the penumbra of any established concept of unfairness, and was not immoral or substantially injurious given the companies' public disclosures. The unjust enrichment claim was barred by the availability of a legal remedy under Chapter 93A.

Holdings

  1. The packaging omissions are pure omissions that do not have the capacity to mislead a reasonable consumer, and therefore do not constitute a deceptive act under Chapter 93A.
  2. The packaging omissions do not fall within any established concept of unfairness, are not immoral, unethical, oppressive, or unscrupulous, and do not cause substantial injury to consumers.
  3. The unjust enrichment claim is barred because an adequate remedy at law (Chapter 93A) was available to the plaintiff, even if that remedy was not viable.

Questions Presented

  1. Whether the defendants' failure to disclose on product packaging the existence of child labor in their cocoa supply chains constitutes an unfair or deceptive act or practice under Massachusetts General Laws Chapter 93A.
  2. Whether the plaintiff's unjust enrichment claim is barred by the availability of an adequate remedy at law.

Disposition

affirmed

Cases Cited (17)

  • Hochendoner v. Genzyme Corp., 823 F.3d 724 (1st Cir. 2016)
  • Aspinall v. Philip Morris Cos., 813 N.E.2d 476 (Mass. 2004)
  • In re International Harvester Co., 104 F.T.C. 949 (1984)
  • Shaulis v. Nordstrom, Inc., 865 F.3d 1 (1st Cir. 2017)
  • Walsh v. TelTech Sys., Inc., 821 F.3d 155 (1st Cir. 2016)
  • Underwood v. Risman, 605 N.E.2d 832 (Mass. 1993)
  • Exxon Mobil Corp. v. Att'y Gen., 94 N.E.3d 786 (Mass. 2018)(Distinguished)
  • V.S.H. Realty v. Texaco, Inc., 757 F.2d 411 (1st Cir. 1985)(Distinguished)
  • Hodsdon v. Mars, Inc., 891 F.3d 857 (9th Cir. 2018)(Analogous)
  • Hall v. SeaWorld Entm't, Inc., 747 F. App'x 449 (9th Cir. 2018)(Analogous)

Showing top 10 of 17.

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