California Prosecutors Win Unfair Competition Suit Against Candymaker

Previously on our blog, we explained the nature of unfair competition lawsuits, and also gave examples of recent cases involving unfair competition claims. One of the cases we mentioned has reached a resolution, and the final judgment shows how steep unfair competition penalties can be.

District attorneys in Yolo, Sacramento and San Joaquin counties successfully sued Pennsylvania-based R.M. Palmer Co., the candy company behind “Too Tall Bunny,” a chocolate bunny marketed as “too tall” for the box it is in. The company began marketing the chocolate bunny, whose ears appear to poke out of the top of the box, about three years ago. According to the prosecutors, the product’s packaging is “untrue and misleading,” because the bunny not really “too tall” for the box. The candy bunny sits on a cardboard platform that raises its stature, and makes its size deceptive.

The candy maker and prosecutors reached a deal, but to make sure it was enforced the district attorneys filed a lawsuit in Yolo County Superior Court. The deal was attached to the lawsuit which was confirmed by the Yolo County Superior Court.  A judge issued a final judgment the same day the suit was filed, agreeing that the packaging was misleading and in violation of laws prohibiting unfair competition and false advertising.

In Pursuant to the agreement, R.M. Palmer agreed to cease discontinue marketing the product. The company and will pay a civil penalty of $2,500 for each act of false or misleading advertising. It will also reimburse the county prosecutors for their costs associated with trying the case.  The total amount that R.M. Palmer will pay under the A total court judgment of ($46,919) will be paid over two years.

Unfair competition actions usually begin with consumer complaints, which are pursued to protect consumers from false and misleading marketing schemes. They are also pursued to make sure there is a level playing field for all businesses. The fines associated with a violation will depend on the seriousness of the misconduct, the number of violations, and the length and willfulness of the misconduct. The idea behind issuing penalties is that they will remove the financial incentive for deceptive business practices and deter businesses from violating unfair competition and false advertising laws.

Ezer Williamson Law provides a wide range of both transactional and litigation services to individuals and businesses. We have successfully prosecuted and defended various types of business, commercial and real property claims. Contact us at (310) 277-7747 to see how we can help you.

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