Eighth Circuit Reverses Folgers Coffee Class Certification Over Individual Causation Issues

The U.S. Court of Appeals for the Eighth Circuit recently reversed the certification of a class action lawsuit involving Folgers coffee, where plaintiffs alleged that the company misrepresented the number of coffee cups per can. Plaintiffs claimed that Folgers' packaging overstated servings, especially when using the single-serving method, which led to an individual class certified in Missouri under the Missouri Merchandising Practices Act (MMPA) for unjust enrichment. The appellate court found that individual issues of causation and harm predominated over common questions, making class certification inappropriate. Fraud-based claims requiring individual analysis of consumer reliance or deception are typically unsuitable for class treatment, even under statutes like the MMPA that do not require traditional reliance. The court highlighted that many consumers were not deceived or understood the variability in cups per can depending on preparation preferences, leading to the need for consumer-by-consumer assessment. The court also rejected the plaintiffs' price inflation theory, which posited that all purchasers paid an artificially higher price due to the alleged misrepresentation, ruling it inconsistent with the requirement of an ascertainable loss. Furthermore, the unjust enrichment claims were denied class treatment because determinations of equity depend on individual transaction circumstances. This ruling underscores the complexities of certifying class actions in fraud-related marketing claims and reinforces that individual testimonies can be decisive. It provides important guidance for defending similar actions where reliance and causation vary among consumers or where price premium theories are advanced.