Opinion ID: 800136
Heading Depth: 2
Heading Rank: 3

Heading: MUDTPA and MCFA

Text: E-Shops alleges that U.S. Bank violated the MUDTPA, § 325D.44, subdiv. 1(13), and the MCFA, § 325F.69, subdiv. 1, by failing to notify its cardholders of the alleged data breach. The MUDTPA describes conduct that constitutes deceptive trade practices, including pass[ing] off goods or services as those of another, caus[ing] likelihood of confusion or of misunderstanding as to ... certification of goods or services and any other conduct which similarly creates a likelihood of confusion or misunderstanding. Minn.Stat. § 325D.44, subdiv. 1(1),(2),(13). The MCFA prohibits [t]he act, use, or employment by any person of any fraud, false pretense, false promise, misrepresentation, misleading statement or deceptive practice, with the intent that others rely thereon in connection with the sale of any merchandise.... Minn.Stat. § 325F.69, subdiv. 1. In sum, both the MUDTPA and the MCFA require that E-Shops plead false, deceptive, or misleading conduct by U.S. Bank. Rule 9(b)'s heightened pleading requirement also applies to statutory fraud claims. Trooien v. Mansour, 608 F.3d 1020, 1028 (8th Cir.2010) (defendant's fraudulent misrepresentation claim under Minnesota law is subject to Rule 9(b)'s pleading requirements). This claim suffers from the same deficiency as the aiding and abetting claim. The complaint contains no factual allegations describing the circumstances surrounding the alleged data breach. E-Shops alleges that there was a data breach, which U.S. Bank was aware of but did nothing to notify the affected cardholders or remedy the problem. However, missing are factual allegations explaining the who, what, when, where and how U.S. Bank's conduct amounted to false, deceptive, or misleading conduct. See id. (complaint must plead ... the details of the defendant's fraudulent acts, including when the acts occurred, who engaged in them, and what was obtained as a result). Consequently, E-Shops's claim for violations of the MUDTPA and the MCFA also fail for lack of particularity.