Critique of Damages Methodology in False Advertising Case

Brattle was retained by a branded nutritional supplements manufacturer accused of charging a market price premium based on allegedly false labelling claims. A Brattle Principal testified that the plaintiff’s expert failed to present a viable method for calculating class-wide damages. The expert explained that the plaintiff’s proposed use of conjoint analysis was flawed, as it only captures demand-side factors, while a price premium reflects both supply and demand dynamics. The expert also demonstrated that the plaintiff’s proposed hedonic analysis was unworkable because it was insufficient for estimating any price premium attributable to the challenged claims. The case was won on summary judgment.