Source: https://www.scribd.com/doc/35848006/Complaint-a-amp-p-Stop-amp-Shop-False-Advertising
Timestamp: 2016-07-25 12:56:54
Document Index: 130431140

Matched Legal Cases: ['§ 1125', '§1121', '§ 1337', '§ 1125', '§ 1338', '§1391', 'In fine', 'In fine', '§ 1125', '§ 1125', '§ 349', '§ 11']

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StudiosDynamiteIDW PublishingKingstone ComicsMarvel ComicsSpace Goat ProductionsTop Cow ComicsValiant ComicsZenescopeDifficultyBeginnerIntermediateAdvancedMixedInstrumentBrassDrums & PercussionGuitar, Bass, and FrettedPianoStringsVocalWoodwindsGenreClassicalCountryFolkJazz & BluesMovies & MusicalsPop & RockReligious & HolidayStandardsWelcome to Scribd! Start your free trial and access books, documents and more.Find out more﻿J.5 44C/SPNY REV.5/2010 Jllnn~ KA.RAS ~ O· . . 3 . .' \,,' ~.." CIVIL COVER SHEET.... .C1V 60 7 . 132010 The·JS-44 cfvtt'cover-sbeet end the ~nio'rma·ti~.n contained herein neither replace nor $up,p~ement"lne tHing and ser'oliCJf'G· ph':tad~ngs Of other p ape rs as required by law, except as provided by local roles of court. This rorrn. approved b~ Judicisl Conference of (he Unite'd Slates in September 1974, is required for use of the Clerk of Courffor Ihe purpose of initiating th~ civil docket sheet; PlAINTIFFS THE GREAT ATLANTIC AND PACIFIC TEA COMPANY, ING. DEFENDANTS THE STOP & SHOP SUPERMARKET COMPANY, LLG, and AHOLD USA, INC. ATTORNEYS (IF KNOWN) ATTORNEYS (FIRM NAME. ADDRESS, AND TELEPHONE NUMBER Steven M. Rabinowitz, Pryor Cashman, LLP 7 Times Square NY, NY t0036 (212) 326-0401 Daniel Savrin, Bingham McCutcheon (617) 951-8674 o One Federal Street Boston, MA 02110-1726 CAUSE OF ACTION (CITE THE u.s. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSE) (DO NOT CITE JUR·ISDlcnONAL STATUTES UNLESS DIVERSITY) False advertising under Section 43(a) of the Lanham Act, 15 U.S.C. Section 1125(a) Has this or a sirnilar case been previously filed in SONY at any time? No? 0 Yes? 0 Judge Previously Assigned (PLACE AN [xl INONE BOX ONL Y) If yes. was this case Vol:O InvoL 0 Dismissed. No 0 Yes 0 If yes, give date NATURE OF SUIT & Case No. PERSON.A,lINJURY CONTRACT ( ) 110 INSURANCE ( )120 MARINE ( ]130 MILLER ACT ( ]140 NEGOTIABLE INSTRUMENT ( ]150 RECOVERY OF OVERPAYMENT & ENFORCEMENT OF JUDGMENT f ]151 MEDICARE ACT [ ]152 RECOVERY OF DEFAULTEb STUDENT LOANS (EXCL VETERANS) f ) 153 RECOVERY OF OVERPAYMENT OF VETERAN'S BENEFITS ( j rso STOCKHOLDERS SUITS I ]190 OTHER CONTRACT I I 195 CONTRACT PRODUCT LIABILITY I ]196 FRANCHISE ( ) 310 AIRPLANE [ ) 315 AIRPLANE PRODUCT LIABILITY ( ) 320' ASSAULT, LIBEL s SLANDER ( ) 330 FEDERAL EMPLOYERS' lIASILITY ( J 340 MARINE ( J 345 MARINE PRODUCT UASILITY ( ) 350 MOTOR VEHICLE I ) 355 MOTOR VEHICLE PRODUCT LlASILITY ( ] 360 OTHER PERSONAL INJURY ACTIONS UNDER STATUTES CIVIL RIGHTS REAL PROPeRTY ( ]210 LAND CONDEMNATION ( I 220 FORECLOSURE I I 230 RENT LEASE & EJECTMENT I I 240 TORTS TO lAND ( J.245 TOFlT PRODUCT LIABILITY ! 1290 ALL OTHER REAL PROPERTY [ 1441 VOTING ( 1442 EMPLOYMENT ( ) 443 HOUSINGI ACCOMMODATIONS I J 444 WE~FARE I I 445 AMERICANS WITH DISABILITIES - EMPLOYMENT I )446 AMERICANS WITH DISABILITIES -OTHER I ) 440 OTHER CIVIL RIGHTS FAIR LABOR STANDARDS ACT LABORIMGMT RELATIONS LABORIMGMT REPORTING & DISCLOSURE ACT RAILWA;Y LABOR ACT r 1670 TAXES (U.S. Plain\iffor OTHER LABOR .DOfendanl) LITIGATION [ 1671 IRS-THIRD PARTY EMPl RET INC 26 usc 7609 SECURITY ACT TORTS FORFEITUREJPENAL TY ACTIONS.U.NOER STATUTES BANKRl)PTCY ( ) 422 APPEAL 28 USC 158 I ) 423 WITHDRAWAL 28 Usc 157 PROPERTY RlGHTS· I I 810 COPYR IGHTS I 1830 PATENT [ 1840 ·TRADEMARK SOCIAL SECURITY ( ]861 HIA (1~95ff) I ) 662 BLACK LUNG (923) I ) 863 DIWCIDIWW (405[gl) I ) 864 ·SSIP TITLE XVI ( 1 865 RSI (405(g») FEDERAL TAX SUrTS OTHER STATUTES I ) 400 STATE REAPPORTIONMENT I ) 410 ANTITRUST I 1 430 BANKS & BANKING I 1450 .cOMMERCE ( I 460 DEPORTATIQN r ]470 RACKETEER INFLUENCED s CORRUPT ORGANIZA TION ACT (RICO) r J 480 CONSUMER CREDIT [ J 490 CABLEISATElUTE TV [ 1810 SELECTIVE SERVICE [ i 850 SECURITIESI COMMODITIESI EXCHANGE [1875 CUSTOMER CHALLENGE 12 USC 3410 l<l890 OTHER STATUTORY ACTIONS ( I 891 AGRICULTURAL ACTS ( I 892 ECONOMIC STASlllZATION ACT ( I 893 ENVIRONMENTAL MATTERS ( ) 894 ENERGY ALLOCATION ACT [ ) 695 FREEDOM OF INFORMATION ACT ( ) 900 APPEAL OF FEE DETERMINATION UNDER E'QUAL ACCESS TO JUSTICE I 1 950 CONSTITUTIONALITY . OF STATE STATUTES Check jf demanded in complaint:. DCHECK IF THIS IS A CLASS ACTION UNDER F_R.C.P. 23 PERSONAL INJURY ( ) 610 f )620 I ) .362 PERSONAL INJURY - MED MALPRACTICE I) 625 I J 365 PERSONAL IN.JURY PRODUCT LIABILITY [)368 ASBESTOS PERSONAL INJURY PRODUCT I ) 630 LIABILITY I I 640 1]650 PERSONAL PROPERTY ( ] 660 AGRICULTURE OTHER FOODS. DRUG DRUG RELATED SEIZURE OF PROPERTY 21 USC 8.81 LIQUOR LAWS RR 11. TRUCK AIRLINE REGS OCCUPATIONAL SAFETYIHEAl TH OTHER r 1 370 OTHER FRAUD I ) 690 r 1 37 I TRUTH IN LENOING ( 1 380 OTHER PERSONAL PROPERTY DAMAGE LAB·OR I 1 365 PROPERTY DAMAGE PRODLicT LIABILITY I) 710 ( ]720 U730 1]740 [ ) 790 PRISONER PETITIONS L 1 791 [ 151() MOTIONSTO VACATE SENTENCE 20 USC 22$5 (1530 HABEAS CORPUS ( I 535 DEATH PENALTY ( I 540 MANDAMUS & OTHER [ I ,50 CIVIL RIGHTS [ I ,55 PRISON CONDITION IMMIGRATION 1]462 NATURALIZATION APPLICATION HABEAS CORPUSALIEN DETAINEE OTHER IMMIGRATION ACTIONS [ J 463 [ 1465 DO YOU CLAIM THIS CASE IS RELATED TO A CIVIL CASE NOW PENDING IN S.D.N.Y.? IF SO. STATE: DEMAND $ _ OTHER - JUDGE~ DOCKETNUMBER, __ ~ __ Check YES only if demanded in complaint JURY DEMAND: 0 YES 0 NO NOTE: Please submit at the time of filing an explanation of why cases are deemed related, (PLACE AN X IN ONE BOX ONL Y) ORIGIN [{] 1 0,;g',n81 Proceeding o 2a. Removed from 03 Remanded from 04 Reinstated or State Court Appellate Court Reopened o 2b.Romoved from State Couri AND at least one party is pro se o 5 Transferred from 0 6 "'"Itidi.lricl {Specify District) L,iigatlon o 7 Appeai 10 Dislricl Judge from Magislrale Judge Judgmenl (PLACE AN X IN ONE BOX ONL Y) 01 U.S. PLAINTIFF 02 U.S. DEFENDANT BASIS OF JURISDICTION [2] 3 FEDERAL QUESTION 04 DIVERSITY (U.S. NOT A PARTY) IF DIVERSITY, INDICATE CITIZENSHIP BELOW. (28 USC 1322, 1441) CITIZENSHIP OF PRINCIPAL PARTIES (FOR DIVERSITY CASES ONLY) (Place an [X] in one box for Plaintiff and one box for Defendant) PTF DEF PTF DEF PTF DEF CITIZEN OF HilS STATE 111 [i 1 C.lTIZEN OR SUBJECT OF A [)3 [ )3 INCORPORATED ~ PRINCIPAL PLACE [ 15 r 1 5 FOREIGN COUNTRY OF BUS'INESS IN ANOTHER STATE CITIZEN OF ANOTHER STATE I ) 2 [ 12 INCORPORATED or PRINCIPAL PLACE I ) 4 [ ) 4 FOREIGN NATiON [ 16 [ J 6 OF BUSINESS IN'THIS STATE PLAINTIFF(S) ADDRESS(ES) AND COUNTY(IES) The Great Atlantic and Pacific Tea Company, Inc. 2 Paragon Drive Montvale, NJ 07645 DEFENDANT(S} ADDRESS(ES) AND CQUNTY(IES) The Stop & Shop Supermarket Company, LLC 1385 Hancock Street Quincy, Massachusett;:; 02169 Ahold U.S.A., Inc. 8301 Professional Place Suite 115 Landover, Maryland 20785-2237 DEFENDANT(S) ADDRESS UNKNOWN REPRESENTATION IS HEREBY MADE THAT, AT THIS TIME, i HAVE BEEN UNABLE, WITH REASONABLE DILIGENCE; TO ASCERTAIN THE RESIDENCE ADDRESSES OF THE FOLLOWING DEFENDANTS: . Check one: THIS ACTION SHOULD BE ASSIGNED TO: (DO NOT check. either box if this a PRISONER PETITION.) [(] WHITE PLAINS o MANHATTAN DATE SIGNATURE QF ATTORNEY OF RECORD ADMITTED TO PRACTICE IN THIS DISTRICT r 1 NO 05 1988 kl YES (DATE ADMITTED Mo. __ Yr. __ ) Attorney Bar Code #SR 5844 RECEIPT Ii Magistrate Judge is to be designated by the Clerk of the Court. MAG. YAN Magistrate Judge 'is s!tl!~. Ruby J. Krajick, Clerk of Court by Deputy Clerk, DATED UNITED STATES DISTRICT COURT (NEW YORK SOUTHERN) JUDGE KARAS UNITED ST ~ES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ----.------------------------------.---------------------------- X THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC., a Maryland Corporation, dfb/aA&P do ct!W--60 7 3 COMPLAINT Plaintiff, - against- THE STOP & SHOP SUPERMARKET CO., LLC and AHOLD USA, INC., Defendants. --------------------------------------------------------------x (.) r.. c c.,;..' Plaintiff, The Great Atlantic & Pacific Tea Company, Inc. ("Plaintiff' or tfi~ "A-& ~, __.: ..... ., .:' ) . -~~ ~0 P"), by its attorneys, Pryor Cashman LLP, as and for its complaint against Defendants, ;. :s ~ The Stop & Shop Supermarket Co., LLC and Ahold USA, Inc. (together, "Defendants" or "stop & Shop"), alleges as follows: 1. This action seeks preliminary and permanent injunctive relief for false advertising under Section 43(a) of the Lanham Act, 15 U.S.c. § 1125(a), for deceptive trade practices and false advertising under sections 349 and 350 of New York's General Business Law, and for unfair competition. Plaintiff the A&P and Defendant Stop & Shop operate competing supermarket businesses in the New York area. The A & P seeks to enjoin Stop & Shop from further disseminating or publishing advertisements which falsely claim that Stop & Shop sells the same supermarket products as the A & P at consistently lower prices, and that Stop & Shop's customers will save money "every time" they shop at Shop and Stop, rather than the A & P. THEPARTIE5 2. Plaintiff the A & P is a corporation duly organized and existing under the laws of the state of Delaware with headquarters located in Montvale, New Jersey. The A & P is engaged in the business of operating retail storesselling groceries and.foodstuffs. 3. Upon information and belief, Stop & Shop is a corporation duly organized and existing under the laws of the state.of Massachusetts with headquarters located in Quincy, MA. Stop & Shop is also engaged in the business of operating retail stores selling groceries and foodstuffs. JURISDICTION AND VENUE 4. This Court has jurisdiction over this action pursuant to: a. Section 39 of the Lanham Act, 15 V.S.c. §1121, and 2S V.S.c. § 1337(a), 1338(a) and 1331,as to the claims arising out of the alleged violations of section 43(a) of the Lanham Act; 15 v.s.c. § 1125(a); and b. 28 U.S.C. § 1338(b) and 1367(a) as to the claims arising out of the alleged violations of state law. 5. Venue is proper in this-judicial districtpursuant to 28 U.S.C. §1391(b), (c) and (d). FACTUAL BACKGROUND 6. Plaintiff A &Pop~ratesretail supermarkets in New York and Connecticut. According to its website, Defendant Stop & Shop operates "more than 375 stores throughout New England, New York and New Jersey." 7. Stop & Shop is presently engaged in an advertising campaign, involving various of its stores _ and using in-store posters, circulars, and the Internet ._ ... in which 2 Stop & Shop falsely claims that customers can "save more every time you shop" at Stop & Shop rather than the A&P (emphasis added). 8. One such in-store poster has been hanging in the aisles during the entire month of August, 2010 (if not longer) (the "19% Savings Advertisement")-at a Stop & Shop located at 246 South Highland Avenue, Ossining, New York (the "Ossining Stop & Shop). A replica of the 19% Savings Advertisement has also appeared on Stop & Shop's website for that store location during the month of August. 9. The 19% Savings Advertisement is titled "Save More Every Time Y 01,1 Shop" and beneath that title is a boldfaced, large-font subtitle stating, "Diane Saved 19% at Stop & Shop:' The 19% Savings Advertisement pictures a woman and states, "We took Diane's shopping order and purchased the exact same items.ata local competitor. You can see for yourself how much you can save at Stop & Shop." Underneath this verbiage, there is a shopping tart containing both visible and obscured 'items, with a caption and bold graphics which declare that the items purchased cost $75.34 at the A & Pand$61.40 at Stop & Shop. 10. In fine print in the bottom right-hand comer of the 19% Savings Advertisement, it reads, "All prices were checked on 717/10 at the Stop & Shop and A& P, 660 Mcl.ean Ave" Yonkers, NY [the "Yonkers A & P"]. Prices include loyalty card savings and temporary price reductions." 11. Ifi fine print in the bottom left-hand corner of the 19% Savings Advertisement, it reads, "Pictured items are for illustrative purposes only and may not reflect actual items purchased. See store for actual items purchased and prices paid." 3 12. During this same time period, Stop & Shop began distributing circular advertisements to customers in its Ossining store and,upon information and belief, by mail (the "9% Savings Advertisement "). 13. The 9% Savings Advertisement is also titled "Save More Every Time You Shop," with a boldfaced, large-font subtitle stating, "Eileen Saved 9% at Stop & Shop." Like the 19% Savings Advertisement, the 9% Savings Advertisement pictures a woman and states, "We took Eileen's shopping order and purchased the exact same items at a local competitor. You can see for yourself how much you can save at Stop & Shop." Underneath this language, there isa shopping cart containing both visible and obscured items, with a caption and bold graphics which declare that the items purchased cost $119.48 at the A & P and $108.89 at Stop & Shop. 14. In fine print at the bottom ofthe 9% Savings Advertisement, it reads, "All prices were checked on 7/10/10 at the Stop & Shop, 246 South Highland Ave., Ossining, NY and A & P, 1886 Pleasantville Rd., Briarcliff Manor, NY [the "Briarcliff A & P"]. Prices include loyalty card savings and temporary price reductions. Pictured items are for illustrative purposes only and may not reflect actual items purchased, See store for actual items purchased and prices paid." 15. Stop & Shop disseminated both the 19% Savings Advertisement and the 9% Savings Advertisement at the Stop & Shop located at III Vredenburg Avenue, Yonkers, New York ("Yonkers Stop & Shop") as well. 16. However, at the Yonkers Stop & Shop, the 9% Savings Advertisement was on poster-board, hanging from at least one aisle (whereas ithad been in a circular publication at the Ossining Stop & Shop.) 4 17. The Yonkers Stop & Shop displayed 9% Savings Advertisement despite the fact that it apparently conducted its price comparison survey at the Briarcliff A&P, some 20 miles away. 18. Additionally, the Yonkers Stopec Shop displayed the 19% Savings Advertisement in its circular publication (whereas it had been on a large poster-board at the OssiningStop and Shop). 19. The 19% Savings Advertisement and the 9% Savings Advertisement, (together, the "False Advertisements") are false and misleading because they falsely represent that Stop & Shop conducted a scrupulous survey to prove that items sold by Stop & Shop are less expensive than the same items sold by the A&P every time. 20. Additionally, the photograph contained in the False Advertisements is false and misleading. While the photograph of the shopping cart suggests that these were the-items Stop & Shop purchased to make its price comparison, it then tries to disclaim the impression by claiming the photograph is for "illustrative purposes only." 21. N otabl y, Stop & Shop uses the same photograph of a shopping cart in both the 19% Savings Advertisement and the 9% Savings Advertisement. The 19% Savings Advertisement claims that the items inthe photograph cost $75.34 at the A&P and $61.40 at Stop&, Shop, while the 9% Savings Advertisement claims that the items in the photograph cost $119.48 and $108.89, respectively, a difference of over $40. 22. The prices listed in the False Advertisements are themselves false. To begin with, though the False Advertisements disclaim, "See store for actual items purchased and prices paid," upon information and belief _' based upon inquiries made at the stores running those ads - no such information is available. 5 23. In addition, while the prices listed in the False Advertisements represent that the items were purchased at their regular prices at both stores, the fine print disclaimer in the False Advertisements admits that Stop and Shop applied discounts to its items before comparing them to the A & P's regular prices. 24. Most significantly, the claimed A&P customer purchase orders on which Stop & Shop's price comparisons are allegedly based appear to be fictitious. In both the 19% Savings and the 9% Savings Advertisements, Stop & Shop claims that it used actual purchase orders of real A&P customers for its price comparisons. But for the two dates cited in the False Advertisements, no customer records could be found matching the amounts of the purchase orders stated in the False Advertisements. 25. The False Advertisements and any similarly false and misleading advertising or promotion by Stop & Shop have harmed and will continue to harm the public image and goodwill of the A & P and its supermarket business. 26. The False Advertisements and any similarly false and misleading advertising or promotion by Stop & Shop have harmed and will continue to harm the consumer public. 27. The A & P is without an adequate remedy atlaw forStop & Shop's conduct. COUNT I (Violation of 15 U.S.C. § 1125(a)) 28. Plaintiff repeats and realleges each and every allegations contained in paragraphs 1 through 27 hereof with the same force and effect as if fully set forth herein. 29. The foregoing acts of Defendant constitute violations of Section 43(a) of the.Lanham Act, 15 U.S.C. § 1125(a}. 6 COUNT IT (Vloiation olN.Y. Gen. Bus. L. §§ 349 and 350) 30. Plaintiff repeats and realleges each and every allegations contained in paragraphs 1 through 29 hereof with the same force and effect as if fully set forth herein. 31. The foregoing acts of Defendant constitute false advertising in violation of sections 349 and 350 of the New York General Business Law. COUNTIIT (Unfair Competition) 32. Plaintiff repeats and realleges each and every allegations contained in paragraphs 1 through 31 hereof with the same force and effect as if fully set forth herein. 33. The foregoing acts of Defendant constitute unfair competition under the common law of New York. WHEREFORE, Plaintiffprays: A. For judgment that: (i) Defendant has violated Section43(a) of the Lanham Act, IS V.S.c. § I12S(a); and (ii) Defendant has engaged in false advertising under Sections 349 and 3S0 of the New York General Business Law; and (iii) Defendant has engaged in unfair competition under the common law of New York; (iv) this is an "exceptional case" under Section 3S(a) of the Lanham Act, IS U.S.C. § 11 17(a), and that Plaintiff is entitled to recoup its costs andattomeys' fees. 7 B. For preliminary and permanent injunctions restraining and enjoining Defendant, its affiliates, subsidiaries, divisions, agents, servants, officers, directors, employees, and all those acting under its control and/or on its behalf and/or in concert with it, from disseminating or causing to be disseminated: (i) the 19% Savings Advertisement annexed hereto as Exhibit A and the 9% Savings Advertisement annexed hereto as Exhibit B, as welL as any other versions which claim that Plaintiff charges higher prices than the Defendant for the same products. C. For an order directing the Defendant, its affiliates, subsidiaries, divisions, agents, servants, officers, directors, employees, and all those acting under its control and/or on its behalf and/or in concert with it: (i) to take all necessary steps to secure the return and destruction of the 19% Savings Advertisement and the 9% Savings Advertisement; and (ii) to issue corrective advertising and promotional materials in a form approved by the Court to acknowledge the aforementioned violations and to ameliorate the false, misleading, and deceptive claims in the 19% Savings Advertisement and the 9% Savings Advertisement; and (iii) to file with this Court and serve upon Plaintiff within thirty (30) days after Defendant is served with an injunction, a written report under oath setting forth in detail the manner in which Defendant has complied with the relief ordered herein. 8 D. That Defendant be required to pay Plaintiff damages in an amount to be determined at trial, including all of Plaintiff s costs, disbursements, expenses and attorneys' fees. E. For all such other and further relief as the Court deems just and proper. Dated: New York, New York August 12, 2010 9 PRYOR CASHMAN LLP 7 Times Square New York, New York 10036 (212) 42.1-4100 srabinowitz@pryorcashman.com sbell@pryorcashman.com More From This UserMarshak v Schaffner Marvelettesbelair v mgaComplaint Cayman Jack v Jack DanielsDecision SDNY Personal Jursidcition VenueDecision Gosmile v Levine Re Wo PrjudiceDecision 2d Cir Lv v LyShiga Japan RevisionABC v Aereo ComplaintPenn Response to LvLv to Penn Demand LetterComplaint MeltwaterDecision Secalt Tirak Trade Dress Shapeumg CopyComplaint PreschooliansComplaint GloveablesDraft Discussion Draft CopyComplaint Acme Widget q LogoTtab Cavern Club 2(a)Ttab Cavern Club 2(a)Complaint Cavern Club NevadaBrief False Advertising Calico CornersComplaint SituationComplaint in n Out BoomerangComplaint Skull CandyComplaint Boost Ohio
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