DUKE vs PHILZ COFFEE, INC.

26CV166705: DUKE vs PHILZ COFFEE, INC. 06/09/2026 Hearing on Demurrer Demurrer to Plaintiff's Complaint; filed by Philz Coffee, Inc. (Defendant) CRS# 146147779185 in Department 21

Tentative Ruling - 06/08/2026 S. Raj Chatterjee

PARTIES TO APPEAR on the Demurrer of Philz Coffee to the First Amended Complaint and the motion of Philz Coffee to strike portions of the First Amended Complaint. The Court is inclined to order as follows:

The First Amended Complaint filed 3/11/6 alleges that Philz Coffee, Inc.’s ("Philz") single serve coffee pod products are misleadingly advertised as recyclable and improperly stamped with the “chasing arrows symbol” because the Products are not actually being recycled at a 60 percent rate allegedly required by California law. The Complaint asserts claims under B&P 17500 (the False Advertising Law or “FAL”), under B&P 17200 (the “UCL”), and Civil Code 1750 et seq (the CLRA”).

Philz asserts that Plaintiff’s claims are barred as a matter of law. Under Cel-Tech Communications, Inc. v. Los Angeles Cellular Telephone Co. (1999) 20 Cal.4th 163, 182, “If the Legislature has permitted certain conduct or considered a situation and concluded no action should lie, courts may not override that determination. When specific legislation provides a “safe harbor,” plaintiffs may not use the general unfair competition law to assault that harbor.”

The legislature in SB 343 (effective 1/1/22) created a standard and a safe harbor for the “chasing arrows symbol” used for recycling and a related safe harbor. That is a recent and specific statute that takes precedence over any older and more general statute.

Public Resources Code (“PRC”) 42355.51(b)(1) states a standard for when a product with the “chasing arrows symbol” indicating that the product is recyclable is deemed to be deceptive or misleading. PRC 42355.51(b)(2) then sets out a “safe harbor, which is that paragraph (b)(1) does not apply to “(A) Any product or packaging that is manufactured up to 18 months after the date the department publishes the first material characterization study or before January 1, 2024, whichever is later. (B) Any product or packaging manufactured up to 18 months after the date the department updates the material characterization study ”

Plaintiff alleges that the CalRecycle final report was filed on April 4, 2025. (FAC, ¶ 23). Therefore, under PRC 42355.51(b)(2) the claims that the “chasing arrows symbol” is deceptive are within the safe harbor for “Any product or packaging manufactured up to 18 months after the date the department updates the material characterization study” which is 18 months after April 4, 2025, which will be October 4, 2026. All potential claims regarding the “chasing arrows symbol” arising before October 4, 2026, are in the safe harbor.