In Bates v. Abbott Laboratories, the Second Circuit affirmed dismissal of a consumer class action challenging the labeling of Ensure shakes and drinks as materially misleading. 2025 WL 65668, at *1–2 (2d Cir. Jan. 10, 2025).
The plaintiff claimed the labeling was misleading because it falsely portrayed Ensure drinks as “healthy and nutritious” despite containing “added sugar,” which the plaintiff alleged was “detrimental to consumers’ health.” Id. at *2. The plaintiff brought claims under New York General Business Law §§ 349 and 350, which prohibit “deceptive acts or practices” and “false advertising,” respectively. Id. at *1.
The Second Circuit affirmed dismissal because the labeling on the product fully disclosed the drinks’ added sugar content, and defendants cannot be liable for an allegedly deceptive practice or false advertising that is “fully disclosed.” Id. at *2. The court explained that, because the sugar content was listed on the product labeling, “any misconception about the contents of the Ensure drinks based on” the claim that it was healthy and nutritious because it did not contain added sugar could “be resolved by a consumer who looks at the sugar content on the” label. Id. at *3.
This decision provides a meaningful look into how the Second Circuit evaluates deceptive practice and false advertising claims brought under New York General Business Law §§ 349 and 350 and outlines a path to defend against similar lawsuits.