Evian maker Danone defeats lawsuit over ‘carbon neutral’ claim

By Jonathan Stempel

NEW YORK (Reuters) – The maker of Evian spring water, Danone (EPA:DANO), won the dismissal of a lawsuit challenging its “carbon neutral” claim on bottles, as a U.S. judge reversed his earlier ruling letting the proposed class action proceed.

Consumers accused Danone of defrauding them into buying Evian, not knowing that its manufacturing process allowed the release of carbon dioxide into the atmosphere.

U.S. District Judge Nelson Roman in White Plains, New York, had ruled on Jan. 10 that “carbon neutral” was ambiguous, and Danone expected “too much” for consumers to figure out what Evian labels meant.

After Danone asked for reconsideration, Roman said in a decision on Thursday he now believed reasonable consumers would “look beyond the front label,” which depicted mountains and said Evian was sourced from the French Alps, and check the back label.

There, Danone provided a link to Evian’s website, which provided a fuller explanation of carbon neutral’s meaning.

Danone’s representations “are technically true and relevant disclosures are made available to consumers,” Roman wrote.

The plaintiffs, Stephanie Dorris of California and John Axiotakis of Massachusetts, said they paid premium prices for Evian, equating “carbon neutral” with environmentally friendly.

Lawyers for the plaintiffs did not immediately respond on Monday to requests for comment. The judge gave permission to file a second amended complaint.

Roman ruled nine days after a Chicago federal judge dismissed a lawsuit accusing Danone of defrauding consumers by claiming on labels that Evian is “natural” though it contains microplastics that seep from the bottle.

Danone’s products also include Dannon, Oikos and Activia yogurt. The company is based in Paris, and its North American headquarters are in White Plains.

The case is Dorris et al v Danone Waters (NYSE:WAT) of America, U.S. District Court, Southern District of New York, No. 22-08717.