In a major win for consumers, the U.S. Court of Appeals for the Ninth Circuit has revived a class action lawsuit brought by Alexander Panelli, represented by Crosner Legal, against Target Corporation. The decision reinforces that companies can be held accountable for false advertising, even when the claims at issue may be impossible.
Case Reference: Panelli v. Target Corporation, No. 24-6640
Crosner Legal, alongside co-counsel, represents Mr. Panelli in a lawsuit alleging that Target Corporation marketed and sold bed sheets labeled with thread counts that could not be achieved with 100% cotton. According to the complaint, Mr. Panelli purchased the product believing he was receiving a higher-quality item, only to later discover that the advertised thread count was allegedly unattainable and materially misleading.
The district court initially dismissed the case, concluding that no reasonable consumer could be deceived by a claim that is physically impossible. However, the Ninth Circuit rejected that reasoning and reversed the dismissal, allowing the case to proceed.
In its decision, the Ninth Circuit clarified an important principle under California consumer protection laws. The focus is on whether a reasonable consumer is likely to be misled, not whether the claim could theoretically be true. The Court emphasized that consumers are entitled to rely on clear, objective product representations and are not expected to investigate whether those claims are scientifically or technically feasible.
The Court also recognized that allegations of literally false advertising, particularly those involving measurable product characteristics like thread count, are among the most actionable under laws such as California’s Unfair Competition Law and Consumer Legal Remedies Act. Where a company makes a concrete claim about a product, and that claim is alleged to be false, those issues are typically best resolved through litigation rather than dismissed at an early stage.
Importantly, the Ninth Circuit rejected the notion that companies can avoid liability by making claims that are so extreme they appear unbelievable. The Court explained that adopting such a rule would create a loophole allowing businesses to escape responsibility for completely false statements, which would undermine the purpose of consumer protection laws.
This ruling marks an important step forward for consumer rights and highlights the role of firms like Crosner Legal in holding corporations accountable for deceptive practices. The decision ensures that claims involving false or misleading product representations, especially those that impact purchasing decisions, will receive proper judicial scrutiny.
As the case returns to the district court, Crosner Legal will continue to advocate on behalf of Alexander Panelli and the proposed class. The firm remains committed to protecting consumers and pursuing claims against companies that engage in misleading or unlawful conduct.