As plaintiffs continue to rely on the District of Columbia Consumer Protection Procedures Act (“CPPA”) to bring greenwashing suits, a recent D.C. Superior Court decision imposes limits on their ability to allege that a company’s general commitments to “sustainability” can constitute actionable misrepresentations.

In Earth Island Institute v. The Coca-Cola Company, No. 2021 CA 001846 B (Nov. 10, 2022), plaintiff alleged that the Coca-Cola Company’s statements on various platforms deceptively represented the company as sustainable and environmentally friendly.  Specifically, plaintiff claimed that several statements on the company’s website and Twitter regarding its corporate sustainability initiatives were misleading because the company’s business practices allegedly fell short of what consumers would expect from a “sustainable company.”  The court dismissed the complaint in full, holding that plaintiff had failed to identify any actionable misrepresentation of material fact.

  1. General aspirational statements did not violate the CPPA.  The court first held that the majority of statements identified by the plaintiff were “aspirational sentiments, such as future goals or vague corporate ethos” that may “point to a general theme of sustainability and corporate improvement,” but are not “promises or measurable datapoints that would render the [] statements true or false.”  This included phrases such as “a more sustainable and better shared future,” “a focus of ours,” “a more sustainable future for our communities and our planet,” “help develop more effective recycling systems,” and “committed to creating.”  While the complaint referenced a few more specific forward-looking statements—including the company’s plans “to help collect and recycle a bottle or can for every one we sell globally by 2030” or to “[m]ake 100% of our packaging recyclable globally by 2025”—the court concluded that these, too, were merely future goals that could not, at least at present, be measured or determined to be false or misleading.
  1. Statements not tied to a “product or service” were not actionable under specific sections of the CPPA.  The court further held that sections (a), (d), and (h) of the CPPA, D.C. Code § 28-3904(a), (d), (h), explicitly require that the alleged deception involve specific “goods or services,” which Coca Cola’s statements did not.  The court rejected plaintiff’s argument that these general sustainability statements were “designed to effectuate a sale of the product,” and held that the communications, which did not appear on the product itself, were not actionable under these sections of the CPPA.
  1. Aspirational statements did not create a misleading “general impression” or “mosaic of representations” that is actionable under the CPPA.  In addition to the provisions cited above, plaintiff also attempted to establish violations of sections (e), (f), and (f-1) of the CPPA, D.C. Code § 28-3904(e), (f), (f-1), which prohibit misrepresentations as to a material fact, failures to state a material fact, or innuendos or ambiguities as to a material fact, if they have a tendency to mislead.  Plaintiff argued that Coca Cola’s statements, taken together as a “general impression” or a “mosaic of representations,” could mislead a reasonable consumer as to Coca Cola’s sustainability.  The court rejected that argument, explaining that the CPPA prohibits misrepresentations as to a material fact, “not a bungle of different statements taken from various documents at different times.”  While plaintiff’s complaint took issue with Coca Cola’s marketing strategy and the way it had branded itself, “[n]othing in the CPPA prohibits an entity from cultivating an image.”  Ultimately, the court said, there is “no plausible framework to determine whether a reasonable DC consumer could be misled by a general impression,” and the statements at issue were so “aspirational, limited, and vague” that, as a matter of law, they could not be misleading.
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Photo of Alyssa McGraw Alyssa McGraw

Alyssa McGraw is a litigator whose practice focuses on complex civil litigation and government investigations. She represents clients in the consumer brands, technology, and financial services industries, with experience defending clients in class actions, regulatory enforcement proceedings, and internal and government investigations, including…

Alyssa McGraw is a litigator whose practice focuses on complex civil litigation and government investigations. She represents clients in the consumer brands, technology, and financial services industries, with experience defending clients in class actions, regulatory enforcement proceedings, and internal and government investigations, including in related litigation.

Alyssa also maintains an active pro bono practice.

Photo of Andrew Soukup Andrew Soukup

Andrew Soukup is a co-chair of the firm’s Class Action Litigation Practice Group. Andrew specializes in representing heavily regulated businesses in class actions, multidistrict litigation, and other high-stakes disputes. Recognized for achieving “big wins in his class action practice,” Andrew has defeated a variety…

Andrew Soukup is a co-chair of the firm’s Class Action Litigation Practice Group. Andrew specializes in representing heavily regulated businesses in class actions, multidistrict litigation, and other high-stakes disputes. Recognized for achieving “big wins in his class action practice,” Andrew has defeated a variety of advertising, consumer protection, privacy, and product defect and safety claims ranging in exposure from millions to billions of dollars.

Andrew’s clients include those in the consumer products, life sciences, financial services, technology, automotive, and media and communications industries. He has helped his clients prevail in litigation in federal and state courts across the country against putative class representatives, government agencies, state attorneys general, and commercial entities.

With a long history of representing companies subject to extensive federal regulation and oversight, Andrew provides a unique ability to help courts understand the complex environment that governs clients’ businesses. Clients turn to Andrew because of his successful outcomes at all stages of litigation, his responsiveness and attention to their matters, his understanding of their businesses, and his creative strategies.

Andrew’s recent successes include:

  • Leading the successful defense of several of the world’s leading companies and brands from claims that they engaged in deceptive marketing or sold defective products, including claims brought under state consumer protection and unfair deceptive acts or practices statutes.
  • Delivering wins in multiple nationwide class actions on behalf of leading financial institutions related to fees, disclosures, and other banking practices, including the successful defense of numerous financial institutions accused of violating the Paycheck Protection Program’s implementing laws, which contributed to Covington’s recognition as a “Class Action Group of the Year.”
  • Helping one of the world’s largest seafood companies defeat ESG-related claims accusing the company of misrepresenting its environmental-friendly production practices.

Andrew has also obtained favorable outcomes for numerous clients in commercial and indemnification disputes raising contract, fraud, and other business tort claims. He helps companies navigate contractual and indemnification disputes with their business partners. And he advises companies on their arbitration agreements, and has helped numerous clients avoid multi-district and class-action litigation by successfully enforcing their arbitration agreements.

Watch: Andrew provides insights on class action litigation, as part of our Navigating Class Actions video series.

 
Photo of Ashley Simonsen Ashley Simonsen

Ashley Simonsen is a litigator whose practice focuses on defending complex class actions and mass torts in state and federal courts across the country.

Ashley represents clients in the technology, consumer brands, financial services, and sports industries through all stages of litigation, including trial…

Ashley Simonsen is a litigator whose practice focuses on defending complex class actions and mass torts in state and federal courts across the country.

Ashley represents clients in the technology, consumer brands, financial services, and sports industries through all stages of litigation, including trial, with a strong track record of success on early dispositive motions. Her practice encompasses advertising, antitrust, product defect, and consumer protection matters. Ashley regularly advises companies on arbitration clauses in consumer agreements and related issues, including mass arbitration risks and issues arising under McGill v. Citibank, N.A. And she is one of the nation’s leading experts on “true lender” issues and the related “valid when made” doctrine.

Ashley has been recognized three times by Law360 as an “MVP” (in Class ActionsTechnology, and Banking) and as a “Rising Star” (in Banking). Her successful representation of Meta earned her a 2021 “Top Verdict” recognition from the Daily Journal. She has also been included in the Daily Journal’s list of the “Top 100 Lawyers” and “Top Women Lawyers” in California, named a “Lawyer on the Fast Track” and “Women Leader in Tech Law” by The Recorder, and recognized twice as a Leader of Influence: Litigators & Trial Lawyers by the Los Angeles Business Journal. Before practicing law, Ashley was an associate at Lehman Brothers in New York where she advised banks on balance sheet management and interest rate hedging strategies.