Numerous class action complaints have been filed recently, challenging labels’ claims that the products are “all natural.” Similarly, cosmetics products may be challenged for “organic” or “natural” labeling claims. The food-labeling cases allege that the “all-natural” label claims are deceptive because the products contain allegedly synthetic ingredients such as ascorbic acid (Vitamin C), citric acid, potassium citrate or calcium chloride. One of the many roadblocks for plaintiffs in establishing class certification in these cases has been finding a reliable damages methodology that can withstand scrutiny. This article summarizes several proposed models and how the courts have dealt with them.

Damages Models

In Comcast Corp. v. Behrend, 133 S. Ct. 1426, 1433 (U.S. 2013), the Supreme Court held that at the class certification stage, the plaintiffs’ damages model must be consistent with its liability case and “susceptible of measurement across the entire class.” Id. at 1433-34. The challenge in finding a methodology is to isolate a proper measure of what amount is necessary to compensate the purchaser for the difference between the product as labeled and the product actually received by the consumer. Three models have been discussed for trying to quantify this alleged damage in “All Natural” label cases.

1. The Price Premium Model

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