NY Daily Record Since 1908
United States Court of Appeals for the Second Circuit
Misleading advertisements
Puffery
MacNaughton v. Young Living Essential Oils LC
22-0344
Judges Kearse, Park, and Perez
Background: The National Advertising Division, a self-regulatory organization, concluded that the defendant’s claims that its oils are therapeutic-grade and impart physical and/or mental health benefits are unsupported and it recommended that the defendant stop making these claims. By the time of the announcement, the plaintiff had already spent money on the products and commenced an action. She appeals the dismissal of her claims. The court found that claims she reported as misleading were run-of-the-mill puffery that companies use when trying to persuade potential customers to purchase the product.
Ruling: The Second Circuit held that, under its case law, the New York General Business Law claims should not have been dismissed at the pleadings stage. Therefore, dismissal was vacated and remanded. The Second Circuit further vacated and remanded the unjust enrichment claims as they met the pleading standards of the Federal Rules of Civil Procedure.
John J. Nelson, of Milberg Coleman Bryson Phillips Grossman, for the plaintiff-appellant; George W. Hicks Jr., of Kikland & Ellis, for the defendant-appellee.
