'Made in the USA' lawsuit against CVS Health is dismissed

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[February 15, 2017]  By Jonathan Stempel

(Reuters) - A federal judge has dismissed a proposed class-action lawsuit accusing CVS Health Corp of selling Vitamin C drops that are falsely labeled as "Made in the USA" because the Vitamin C is sourced from other countries.

U.S. District Judge John Darrah in Chicago ruled on Monday that the plaintiff David DeMedicis, who called himself a "patriotic American" in his complaint, did not show that drops he bought cost more because they appeared to be American-made.

Darrah also said the resident of Cook County, Illinois, which includes Chicago, could not show future harm because he was "now aware" of alleged deception by the second-largest U.S. drugstore chain.

"Plaintiff merely alleges that he prefers products made in the United States and that he is willing to pay a premium," the judge wrote.

Darrah also dismissed a claim against Woonsocket, Rhode Island-based CVS on behalf of people in eight other states, including California and New York, with consumer fraud laws similar to Illinois', saying he lacked jurisdiction.

The judge said DeMedicis may file an amended complaint.

CVS and lawyers for the plaintiff did not immediately respond on Tuesday to requests for comment.

In his complaint, the plaintiff cited a recent survey by Consumer Reports magazine that 77 percent of Americans were willing to pay more for products labeled as made in America.

DeMedicis also described himself as an "unsophisticated consumer" who desired to support American companies and jobs.

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In seeking the case's dismissal, CVS said the plaintiff's Alabama-based law firm had filed a dozen similar lawsuits against other companies including Wal-Mart Stores Inc.

CVS also questioned why DeMedicis did not simply accept its money back guarantee.

The case is DeMedicis v CVS Health Corp et al, U.S. District Court, Northern District of Illinois, No. 16-05973.

(Reporting by Jonathan Stempel in New York; Editing by Marguerita Choy)

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