survey sustains false advertising claim alleging misleading use of military imagery

Mahindra & Mahindra Ltd. v. FCA US LLC, 2021 WL 323253,
No. 18-cv-12645 (E.D. Mich. Feb. 1, 2021)

Plaintiffs sued FCA for a judgment of noninfringement of the
Jeep grille design in its Roxor vehicle (which dispute mainly took place in the
ITC), and FCA counterclaimed for, among other things, false advertising (over
which the ITC lacked jurisdiction). Here, the court denies plaintiffs’ summary
judgment motion on the false advertising counterclaim, which relates to an ad
that allegedly misrepresented plaintiffs’ vehicles’ history with the US
military.

The Roxor’s design and construction is “based on a long line
of military-style vehicles that [plaintiffs] have been manufacturing and
selling in India and around the world for over 70 years, since the end of World
War II.” The 30-second
ad at issue

features Roxor vehicles of various
colors driving on unpaved mountain trails, along with various images of
individuals camping, hiking and chain-sawing logs. It also includes various
military imagery and references. According to Defendant, “more than 20 seconds”
of the 30-second Advertisement displays such military-inspired elements,
including the U.S. Army star logo, a vehicle operator wearing camouflage in a
camouflage vehicle, an Army green version of the Roxor, a man dressed in Army
green attire, and the Roxor logo on an Army green background. Plaintiffs
emphasize that the U.S. military “is never mentioned in the commercial.” 

The Advertisement’s voice-over
script is as follows:

When the mission calls for
military grade grit, call in an off-road vehicle built on more than 70 years of
hardcore heritage. The one that makes “there’s no way we’re getting out of
here” the best news you’ve heard all day, and answers menacing terrain with,
“Is that all you’ve got? Get out there in legendary off-road vehicle: Roxor,
from Mahindra. There’s plenty to be done.

FCA argued that this ad falsely evoked a connection with the
US military. (Twenty years ago, there were a handful of cases saying that
claims like this—the D’s ad falsely connected it to a third party—asserted
someone else’s rights and so the non-owner-plaintiff was not the right
plaintiff, but that reasoning probably doesn’t survive Lexmark.) (FCA
also argued that evoking the US military “suggests a shared-legacy between the
Roxor vehicle and the Jeep® brand and the Jeep® brand’s U.S. [mi]litary’s
heritage,” though that really seems a bridge too far—no pun intended—and the
survey, wisely, didn’t bother to test that idea.)

Hal Poret conducted a survey for FCA, which he concluded
found that: (1) at least 46.3% of respondents believe that the Roxor has been
used by the military or has a military history/heritage; (2) 70.4% of
respondents believe that the Roxor is connected to the military; and (3) 37.0%
of respondents believe that the Advertisement’s message pertains to the U.S.
military. In response, plaintiffs argued that “[t]here is no evidence in the
record that a single Roxor vehicle buyer saw the Advertisement.”

The court found that there was no literal falsity; the ad
was ambiguous in using the phrases “[w]hen the mission calls for military grade
grit”; “[c]all in an off-road vehicle built on more than 70 years of hardcore
heritage”; and “[g]et out there in a legendary off-road vehicle: Roxor, from
Mahindra” along with black-and-white footage of a Jeep during World War II.

This was not puffery. The statements and imagery were
neither “exaggerated, blustering and boasting” nor a “general claim of
superiority over comparable products.” The court would not equate “historic
military footage, a claim that something is ‘military grade,’ and a suggestion
that company’s 70 years of heritage is connected to the U.S. military” with “vague
phrases which are ‘nothing more than a mere expression of opinion.’”

The survey was sufficient evidence for a reasonable
factfinder to find misleadingness and deception, at least for purposes of
securing injunctive relief. Among the relevant responses:

[What was the main message or
message of the commercial we showed you?] Roxor is a new off road vehicle that
has a long history of being used in the military.

[What reasons, if any, did the
commercial give for choosing to purchase the advertised vehicle?] Military use
in World War Two; theyve [sic] been used in the military for years.

[What did the commercial say or
show relating to the history or heritage of the advertised vehicle?] It showed
pictures of it working in the military from many years ago; Used by our
military in the 2nd world war [sic]; That the military used this brand for its
jeeps.

Materiality: The court framed this as whether suggesting a
“connection” between the U.S. military and the Roxor was “an inherent quality
or characteristic,” which I find unhelpful for modern materiality analysis.  Plaintiffs emphasized that it was undisputed
that the “clip and reference to ‘military grade grit’ comprise a de minimis
portion” of the ad. “[A] rational trier of fact could conclude that the
disputed issues relate to the inherent quality of the Roxor,” since there was
testimony that plaintiffs’ history and heritage was useful to its brand story.
Even though the reference was short, length wasn’t required, given that FCA “pointed
to several instances where Plaintiffs considered the advantages of including
reference to the military grade, which concern the relevant consumer market..”

Causal link to the claimant’s injury: FCA only sought
disgoragement and a permanent injunction, not damages. (Only!) So it wasn’t
required to quantify its damages. Rather, “logical likelihood of damages is
sufficient.” FCA provided evidence that the ad was likely to cause harm,
specifically “causing it to lose singular control over its brand image and
diluting the distinctiveness of the brand, rendering its marketing messaging
less effective and causing it to have to spend more to communicate
effectively.” And: “[Plaintiffs] are trying to leverage the Jeep® DNA just as
we plan to. And based on my own experience, it appears [Plaintiffs are]
targeting people who are interested in the Jeep® brand.” Although some of the
evidence was about the Roxor generally, the Poret survey was sufficient to show
the requisite harm causation.

 

from Blogger https://ift.tt/39Mk1Fo

This entry was posted in Uncategorized and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s