Looking at how the phrase was used in the context of the packaging as a whole, the court explained, "the packaging did not emphasize simplicity or other virtues. The court just didn't believe that the plaintiff had plausibly alleged why a reasonable consumer would understand the phrase "golden butter" to mean that only butter was used in the crackers. In order to prove a claim for false advertising in New York, the plaintiff must demonstrate that the advertising is "likely to mislead a reasonable consumer acting reasonably under the circumstances." And, in order to determine whether a reasonable consumer would be misled, "courts view each allegedly misleading statement in light of its context on the product label or advertisement as a whole." The plaintiff sued, alleging false advertising and other claims, under New York law. Specifically, the plaintiff alleged that the phrase means that, "wherever butter could be used in the Product, it would be used instead of using its synthetic substitutes, vegetable oils." The consumer argued that even though the phrase communicated that the crackers were "all or predominantly made with butter," they also included vegetable oils. In the lawsuit, a consumer sued Pepperidge Farm, alleging that the phrase "golden butter" was false and misleading, because it falsely communicated that butter was the only type of fat used in the crackers. What does that "golden butter" phrase on the packaging communicate to consumers? Does it mean that the crackers taste like butter? Does it mean that butter is the only type of fat used in the crackers? Does it just mean that butter is one of the main ingredients in the crackers? Or does it mean that the crackers have some butter in them? That was the issue in a recent decision from the United States District Court for the Southern District of New York. Pepperidge Farm sells a type of crackers called "Golden Butter" crackers.
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