Facts

Aterian Inc. labels, distributes, sells, and advertises several Mueller Austria products through its website and also on Amazon.com. The products consisted of home and kitchen tools and gadgets. The label on the front of the products include an Austrian flag and the word "Austria." Stacy Dorcas purchased several Mueller products including its whistling tea kettle and onion chopper. On December 9, 2022, Dorcas filed a class action lawsuit against Aterian in San Bernardino Superior.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant falsely and deceptively labeled and advertised its products with the Austrian flag and "Austria" term, leading reasonable consumers to believe that they were actually made in Austria when they were not. As a result, consumers paid more for the products, thinking they were from or made in Austria.

DEFENDANT'S CONTENTIONS: Defendant denied any liability or wrongdoing associated with plaintiff's claims, specifically contending that its labeling, marketing, packaging, and advertising were not legally deceptive nor misled consumers regarding the geographical origin of the products.

Settlement Discussions

The parties engaged in a full-day mediation with Hon. Louis Meisinger on April 13, 2022.

Result

The case settled with defendant agreeing to pay $800,000, of which $500,000 was available as cash and the remaining balance in vouchers.