Banks et al. v. R.C. Bigelow, Inc., et al., Case No. 2:20-cv-06208, CD of California
In a recent class action matter against Bigelow, Inc., Plaintiffs (“Kimberly Banks and Carol Cantwell”) represented a certified class of California purchasers of Bigelow Tea products to assess allegations of deceptive advertising on Defendant’s tea products with the “Manufactured in the USA 100% American Family Owned” label.
To determine the overpayment (or “price premium”) attributable to the “Manufactured in the USA 100% American Family Owned” representation used in the labeling of the Bigelow Tea products, Plaintiff’s economist expert conducted a conjoint analysis survey of buyers of tea products.
The analysis estimated that class members overpaid by approximately 11% for Bigelow Tea products. Although consumer class actions relying on damages models such as conjoint surveys often settle or resolve before trial, this matter proceeded to a five-day trial. The jury found in favor of the plaintiffs on all three claims and awarded damages in the amount of over $2.36 million, stemming from the misleading “Made in the USA” claims.
This decision reinforces the Ninth Circuit’s acceptance of price premium damages models in consumer class actions and reaffirms the judiciary’s willingness to accept conjoint survey methodologies to calculate those damages. It is likely that “Made in USA” claims will be a continued target for plaintiffs’ attorneys and the FTC. This case outcome provides a roadmap for plaintiffs who may rely on conjoint analysis to provide a basis for calculating price premium claims in future litigation.
Conjoint analysis is a survey technique and discrete-choice model used in market research to measure consumer preferences for products and services. Applied Marketing Science, Inc. (AMS) has been involved in dozens of class action studies where conjoint analysis has been used in support of plaintiffs to grant class certification. Many of these cases have gone on to achieve favorable settlements. The conjoint analysis used in this case is similar in methodology to those that have been used by AMS to support our testifying survey experts.
To learn more about AMS Litigation Support services or surveys for class action litigation matters, please contact testifying survey expert Patty Yanes.