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Energizer LLC v. MTA Trading Inc.

Lanham Act False Advertising, Dilution Claims Survive in Suit Over Re-Sold Batteries

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MEMORANDUM & ORDER Plaintiff Energizer, LLC commenced the above-captioned action on March 27, 2020, against Defendants MTA Trading, Inc. (“MTA”) and Best Deal Supply, Inc. (“Best Deal”), alleging that (1) MTA breached its contract with Plaintiff and (2) Best Deal committed tortious interference with the contractual and business relationship between MTA and Plaintiff. (Compl., Docket Entry No. 1.) On August 28, 2020, Plaintiff amended the Complaint, adding a claim for false advertising in violation of the Lanham Act, 15 U.S.C. §1125(a). (Am. Compl., Docket Entry No. 16.) Plaintiff alleges that (1) MTA purchased batteries from Plaintiff and sold them to reseller Best Deal in violation of MTA’s purchase agreement with Plaintiff, which only allowed sales to consumers, and that Best Deal sold batteries to consumers while advertising the batteries using Plaintiff’s mark, (id.

40-73); and (2) Defendants damaged the goodwill associated with Plaintiff’s mark and diluted Plaintiff’s trade name by fulfilling orders with products different from those advertised and shipping batteries to consumers that were “used, aged, or tampered with,” (id.

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