Russolillo

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS CVS, QUALITY KING, TSA, AND KEN TEEPE’S MOTION TO DISMISS

Presently before the Court are Defendants CVS Corporation (“CVS”), Quality King Distributors, Inc. (“Quality King”), T.S.A. Distributing, Inc. (“TSA”), and Ken Teepe’s (“Teepe”) Motions to Dismiss pursuant to Federal Rule of Procedure 12(b)(6). Having read and considered the moving papers, oppositions, replies, and oral arguments in support thereof, the Court hereby grants in part and denies in part Defendants’ Motion to Dismiss.

I

Factual Background

Plaintiff Sebastian International (“Sebastian”), a California corporation, is a designer and distributor of professional hair care products including hair sprays, shampoos, conditioners, coloring gels, and mousse. Sebastian does not distribute its products through retailers. Instead, Sebastian produces its products for use and sale at hair care salons and beauty schools. The salons and schools are contractually obligated to sell Sebastian products only to consumer clientele, and not to other retailers or distributors. Sebastian’s more popular products bear a holographic label which is used to identify and track the…