Killeen v. McDonald's Corporation et al

Filing 46

MEMORANDUM Opinion and Order signed by the Honorable Elaine E. Bucklo on 4/6/2018. Mailed notice. (mgh, )

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IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ) ) ) ) ) ) ) ) ) ) ) ) ) ) Kelly Killeen Plaintiff, v. McDonald’s Corporation and Salabad, LLC, Defendants. No. 17 CV 874 Memorandum Opinion and Order In this putative class action, plaintiff sues McDonald’s Corporation violated and the one of Illinois its franchisees Consumer Fraud claiming and that Deceptive they Business Practices Act, 815 ISCS 505/2 (“ICFA”), and unlawfully enriched themselves, by deceptively advertising and marketing certain “Extra Value Meals” for sale in their restaurants. Defendants have moved to dismiss the complaint on various grounds, but I confine my analysis to a single, dispositive issue. According to the complaint, defendants market and sell Extra Value Meals that bundle together several menu items that can also “Sausage sausage be purchased Burrito Extra burritos, hash a la carte. Value browns, Meal” and For example, allegedly a medium defendants’ contains coffee, two which consumers can also order individually. According to the complaint, defendants marketed Extra Value Meals as “a value,” meaning that the marketing suggested that the cost of an Extra Value Meals was less than the aggregate cost of its individual components purchased separately, when that was not always the case. For example, plaintiff claims that after seeing defendants’ advertising, she purchased a Sausage Burrito Extra Value Meal at a Chicago McDonald’s for $5.08 when she would have paid only $4.97 had she ordered the individual items in the Extra Value Meal a la carte. Plaintiff claims that defendants’ advertising and marketing was intended to dupe consumers (two classes of whom she seeks to represent) into paying more for items they could have bought at a lower cost. Plaintiff’s theory has superficial appeal: common experience favors her assertion that consumers expect to pay less for items bundled together and billed as a “value” package than they would pay if they purchased the items separately. But even assuming defendants’ marketing of the Extra Value Meal had a tendency to mislead consumers in this respect, Illinois law is clear that where other information is available to dispel that tendency, there is no possibility for deception. Bober v. Glaxo Wellcome PLC, (pharmaceutical substitution of 246 F.3d 934, manufacturer’s two products 2 939-40 (7th statements containing the Cir. 2001) discouraging same active ingredient and stating that they were “different medications” did not violate ICFA because “all of the information available” indicated that ingredient); the Fuchs medications v. Menard, contained Inc., No. the same 17-cv-1752, active 2018 WL 4339821, at *5 (N.D. Ill. Sept. 29, 2017) (consumers’ “direct and complete accuracy of access the to the information defendant’s needed” to determine statements defeats ICFA claim); Tudor v. Jewel Food Stores, Inc., 681 N.E. 2d 6, 8 (Ill. App. Ct. 1997) (no ICFA claim against grocery store that charged a higher price at the register than the price stated in ads and on the shelf because the receipt accurately reflected the price charged); Saunders v. Michigan Ave. Nat. Bank, 662 N.E. 2d 602, 608 (Ill. App. Ct. 1996) (no ICFA claim against bank for allegedly “hiding” an overdraft fee that was disclosed in a pamphlet the plaintiff received). Plaintiff does not claim that the prices defendants charged for their menu items were unavailable to her at the time she made her restaurants typically purchase. such as displayed Indeed, anyone familiar McDonald’s surely on located menus knows near with that the fast-food prices are registers. Understandably, plaintiff may not have wished to take the time to compare prices, but there is no question that doing so would have dispelled the deception on which her claims are based. Accordingly, this is not a case in which consumers would have to 3 consult an ingredients list or other fine print to determine whether prominent connection with images its or product labels a accurately defendant reflect the uses in product’s true nature or quality. Cf. Williams v. Gerber Products Co., 552 F.3d 934 (9th Cir. 2008) (words “fruit juice” alongside images of specific fruits on packaging of a toddler food product could constitute false advertising, even though ingredients list in small print on side of box disclosed corn syrup and sugar as the most prominent ingredients, with no juice from the depicted fruits); Korte v. Pinnacle Foods Group, LLC., No. (S.D. Ill. Mar. 27, 2018) (defendant’s labelling of its salad dressing as “E.V.O.O. Dressing—Made With Extra Virgin Olive Oil,” could mislead consumers about the product’s quality, despite presence of and ingredients list that included other, inferior oils). Here, a straightforward, information available unequivocally dispel price-to-price at any the point misleading comparison of based purchase inference that on would could be drawn from the name “Extra Value Meal.” See In re 100% Grated Parmesan Cheese Marketing and Sales Practices Litigation, 275 F. Supp. 3d statements 910, that 922-23 (N.D. Ill. are ambiguous in 2017) (no isolation ICFA are claim where clarified in context by other available information). Plaintiff argues that Tudor, Trujillo, and a third case defendant cites, Batson v. Live Nation Entertainment, Inc., 746 4 F.3d 827 parking (7th fee Cir. 2014) included distinguishable on (no in their ICFA price facts. claim of But based concert she offers on “hidden” ticket), no are reasoned analysis for why the factual distinctions she observes warrant a different outcome here. Kraft, Inc. v. F.T.C., 970 F.2d 311 (7th Cir. 1992), challenged an which order did by not involve ICFA the Federal Trade claims but instead Commission finding violations of the FTC Act, likewise does not support her cause. For the foregoing reasons, plaintiff’s complaint dismissed. ENTER ORDER: Elaine E. Bucklo United States District Judge Dated: April 6, 2018 5 is

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