Reference no: EM131657280

Question: American Italian Pasta Co. (American) sells dried pasta under numerous brand names, as does its competitor, New World Pasta Co. (New World). From 1997 to 2000, American manufactured Mueller's brand (Mueller's) dried pasta for Best Foods. In 2000, American purchased Mueller's and took on all packaging, distributing, pricing, and marketing for the brand. Since purchasing Mueller's, American has placed the phrase "America's Favorite Pasta" on Mueller's packaging. On different packages used for the Mueller's brand, the phrases "Quality Since 1867," "Made from 100% Semolina," or "Made with Semolina" accompany the phrase "America's Favorite Pasta." The packaging also contains a paragraph in which the phrase "America's Favorite Pasta" appears. The paragraph

(1) states that pasta lovers have enjoyed Mueller's pasta for 130 years;

(2) claims that Mueller's "pasta cooks to perfect tenderness every time," because Mueller's uses "100% pure semolina milled from the highest quality durum wheat"; and

(3) encourages consumers to "taste why Mueller's is America's favorite pasta." New World sent American a demand letter calling for American to cease and desist using the phrase "America's Favorite Pasta."

Consequently, American filed a declaratory judgment action in federal court and named New World as the defendant. American asked the court to declare that its use of the phrase "America's Favorite Pasta" did not constitute false or misleading advertising under § 43(a) of the Lanham Act. New World counterclaimed, asserting that American's use of "America's Favorite Pasta" violated § 43(a). New World argued that American's use of the phrase was false or misleading advertising, because, according to a consumer survey commissioned by New World, the phrase conveyed either of two inaccurate impressions: that Mueller's is a national pasta brand; or that Mueller's is the nation's number one selling pasta. American and New World agreed that American's brands (including Mueller's) are regional in nature and that a pasta producer other than American and New World sells the most dried pasta in the United States. American argued that the phrase "America's Favorite Pasta" did not violate § 43(a) because the phrase constituted non action able puffery. The federal district court agreed with this argument by American and rejected New World's contention that the phrase "America's Favorite Pasta" made a deceptive factual claim. Therefore, the court ruled in favor of American on its request for declaratory relief and against New World on its counterclaim. Was the district court's ruling correct? Was "America's Favorite Pasta" mere puffery or, instead, a false statement of supposed fact?