Case Information
*1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA CLEAN LABEL PROJECT :
FOUNDATION, :
:
Plaintiff, : Civil Action No.: 20-3229 (RC) :
v. : Re Document No.: 7 :
GARDEN OF LIFE, LLC, :
:
Defendant. :
MEMORANDUM OPINION
G RANTING D EFENDANT G ARDEN OF L IFE , LLC’ S M OTION T O D ISMISS I. INTRODUCTION
Plaintiff Clean Label Project Foundation (“CLP”), a non-profit organization, has brought this action against Garden of Life, LLC (“Garden of Life”), a provider of branded supplements, alleging that Garden of Life engaged in unlawful trade practices in violation of the District of Columbia Consumer Protection Procedures Act (“CPPA”). Defendant Garden of Life has moved to dismiss this suit pursuant to Federal Rule of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction, and pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. It argues that CLP lacks Article III standing, that this action infringes on Garden of Life’s freedom of speech, and that the suit also runs afoul of the primary jurisdiction doctrine, which would entrust questions of this nature to federal and state regulators. For the reasons discussed below, the Court concludes that because CLP has not alleged an injury in fact it lacks standing and, thus, the complaint must be dismissed.
II. FACTUAL BACKGROUND
Defendant Garden of Life is a dietary supplement company that sells prenatal vitamins, including the following product lines: Garden of Life Vitamin Code Raw Prenatal (180ct), Garden of Life MyKind Organics Prenatal Multi-Certified Organic Whole Food (90ct), Garden of Life Dr. Formulated Probiotics-Once Daily Prenatal (30ct), Garden of Life Oceans Mom Prenatal DHA (30ct), Garden of Life MyKind Organics Prenatal Once Daily (30ct), Garden of Life MyKind Organics Prenatal Once Daily (90ct), and Garden of Life MyKind Organics Prenatal (30ct) (collectively, “the Products”). See Compl. ¶ 24, ECF No. 1-1. These products are sold to District of Columbia consumers through retail stores and online marketplaces. Id. ¶¶ 22, 44. CLP alleges that in order to capture the market for prenatal vitamins and supplements, Garden of Life marketed the Products with descriptions such as “Clean Nourishment for You & Your Baby Before, During & After Pregnancy,” id . ¶ 21, “Clean is healthy,” id. ¶ 88 , and promises customers that it is “uncompromising about your health,” id . ¶ 90.
CLP is a non-profit public interest organization that describes its mission as “educat[ing] the public and enabl[ing] consumers to make informed shopping choices,” id. ¶ 37, part of which includes “bring[ing] truth and transparency to food and consumer products labeling,” id . ¶ 138. To further this mission, in the fall of 2018 CLP caused the purchase of the Products and had an accredited third-party chemistry laboratory perform quantitative testing. Id. ¶¶ 25, 100– 102. The results found that the Products “contained quantifiable levels of heavy metals as well as detectable amounts of WHO Class II Pesticides and BPA,” substances that CLP asserts “are extremely dangerous to a fetus.” Id. ¶ 25–26. CLP contends that in light of these findings, Garden of Life mislabeled, falsely advertised, and adulterated the products, causing ongoing harm to D.C. consumers. Id. 112–120.
CLP has now brought suit pursuant to the CPPA, D.C. Code § 28-3901 et seq . The CPPA permits nonprofit organizations to bring actions “on behalf of itself or any of its members, or on any such behalf and on behalf of the general public,” and also allows “public interest organization[s]” to bring actions “on behalf of the interests of a consumer or a class of consumers.” D.C. Code § 28-3905(k)(1)(C), (D). CLP alleges that Garden of Life engaged in unlawful trade practices under the CPPA when it marketed and sold prenatal vitamin products in a manner that misled consumers into believing that the products were free of contaminants and superior to competing products, when in fact they were contaminated with toxic heavy metals, pesticides, and BPA. Compl. ¶¶ 123–31 (describing violation of D.C. Code § 28-3904). CLP also alleges that the presence of these contaminants, which are “injurious to health,” render Garden of Life’s prenatal vitamins “adulterated” in violation of D.C. Code § 48-103. Id. ¶ 132.
CLP asks the Court for the following relief: (1) a declaration that Garden of Life’s conduct is in violation of the CPPA; (2) an order enjoining this conduct; (3) an order requiring Garden of Life “to provide corrective advertising to the residents of the District of Columbia that restores consumers”; (4) an order granting CLP’s “costs and disbursements, including reasonable attorneys’ fees and expert fees, and prejudgment interest at the maximum rate allowable by law”; and (5) punitive damages and any further relief deemed just and proper by the Court. Compl. at 28.
III. PROCEDURAL HISTORY
CLP filed this action in the Superior Court for the District of Columbia on August 25, 2020. The case was removed to this Court on November 9, 2020. Notice of Removal, ECF No. 1. That same month, Garden of Life filed a motion to dismiss the complaint. See Def.’s Mot. to Dismiss (“Def.’s Mot.”), ECF No. 7. The motion is opposed by CLP. See Pl.’s Resp. in Opp’n *4 to Def.’s Mot. to Dismiss (“Pl.’s Opp’n”), ECF No. 10. Garden of Life has also filed a reply. See Def.’s Reply in Supp. of Def.’s Mot. to Dismiss (“Def.’s Reply”), ECF No. 11. The motion is now ripe for consideration. [1]
IV. LEGAL STANDARD [2]
Federal courts are courts of limited jurisdiction and the law presumes that “a cause lies
outside this limited jurisdiction.”
Kokkonen v. Guardian Life Ins. Co. of Am
.,
A court resolving a Rule 12(b)(1) motion must “accept[ ] the factual allegations in the
complaint as true,”
Jerome Stevens Pharm., Inc. v. FDA
,
V. ANALYSIS
Garden of Life has moved to dismiss the complaint on two grounds. It argues first a lack of subject matter jurisdiction, claiming that CLP has not properly alleged Article III standing. Def.’s Mot. at 9–11. Garden of Life also contends that CLP does not present a claim on which relief can be granted, asserting that the application of the CPPA here would violate Garden of Life’s freedom of speech, as well as run afoul of the doctrine of primary jurisdiction. Id. at 12– 22. For the reasons discussed below, the Court will grant Garden of Life’s motion to dismiss for lack of subject matter jurisdiction.
The Court begins, as it must, with the jurisdictional question: whether it has subject
matter jurisdiction to review this action. This requires that CLP have Article III standing to
bring this suit.
See
U.S. Const. art. III, § 2 (limiting federal courts’ jurisdiction to “Cases” and
“Controversies”);
see also Hancock v. Urb. Outfitters, Inc
.,
1. Legal Standard
To establish the existence of a case or controversy, “the plaintiff ‘must clearly . . . allege
facts demonstrating’ each element” of Article III standing.
Spokeo, Inc. v. Robins,
136 S. Ct.
1540, 1547 (2016) (quoting
Warth
,
Additionally, to satisfy Article III’s requirements, the plaintiff’s alleged “injury in fact”
must be “(a) concrete and particularized, and (b) actual or imminent, not conjectural or
hypothetical.”
Friends of the Earth
,
“An organization . . . can assert standing on its own behalf, on behalf of its members or
both.”
Equal Rts. Ctr. v. Post Prop., Inc
.,
2. Standing Analysis
CLP asserts that it has alleged organizational standing sufficient to survive Garden of Life’s motion to dismiss. It contends, somewhat convolutedly, that it has organizational standing because Garden of Life’s purportedly false and misleading statements about the Products interfered with CLP’s overall educational mission, and also argues in the alternative that the *8 statutory violation it alleges under the CPPA is itself sufficient to constitute an injury in fact. Pl.’s Opp’n at 3–12. Both arguments fall apart under close examination.
a. CLP Fails to Establish Injury in Fact
CLP’s attempt to show a concrete injury sufficient to confer Article III standing flounders
from the start. As a refresher, the “central question” when determining organizational standing is
“whether the plaintiff has suffered a ‘concrete and demonstrable injury.’”
Env’t Working Grp. v.
U.S. Food & Drug Admin
.,
CLP argues that it has met the requirements of constitutional standing because Garden of
Life caused injury to its overall mission of “educat[ing] customers with regard to food labeling
truth and transparency” because the allegedly misleading statements in question “impeded the
ability of D.C. consumers to make . . . educated data-based decisions.” Pl.’s Opp’n at 5–6;
see
also id.
at 8 (stating that Garden of Life’s purported misrepresentations “damage[d] the exact
aim and mission of CLP’s work”). Even assuming that this is sufficient to meet the first
requirement and demonstrate that Garden of Life has indeed interfered with CLP’s “core
mission,”
Food & Water Watch
,
The second requirement for organizational standing mandates that CLP “allege that the
defendant’s conduct ‘perceptibly impaired’” the organization’s ability to carry out its activities or
provide services in some manner.
Turlock Irrigation Dist. v. FERC
,
b. Reliance on the Statutory Requirements of the CPPA Cannot Remedy CLP’s Failure to Establish Injury in Fact
Perhaps recognizing the shortcomings of its first argument, CLP shifts gears to argue that it can in effect sidestep the constitutional standing requirement altogether. It asserts that the *11 CPPA “create[s] certain rights, the impairment of which could constitute an injury in fact.” Pl.’s Opp’n at 5; see also id. at 11 (arguing that because Plaintiffs “have a statutory right to bring CPPA action . . . the deprivation of that right constitutes an injury in fact”). Garden of Life correctly takes issue with this “statutory-Article-III-standing” argument. Def.’s Reply at 4.
As the Court understands CLP’s rather muddled argument, CLP claims that fulfilling the
CPPA’s statutory requirements is sufficient to create the concrete injury needed to establish
constitutional standing. Pl.’s Opp’n at 5, 9–12. Not so. The Supreme Court has made it
abundantly clear that “Article III standing requires a concrete injury
even in
the context of a
statutory violation.”
Spokeo
,
Indeed, another court in this District recently examined this exact issue under the CPPA
in a highly analogous case, and similarly concluded that the action could not proceed given the
lack of a concrete injury. In
Beyond Pesticides v. Dr Pepper Snapple Grp, Inc.,
an anti-pesticide
nonprofit sought to bring suit under the CPPA against a company that produces applesauce and
*12
apple juice.
See Beyond Pesticides,
VI. CONCLUSION
For the foregoing reasons, Defendant’s Motion to Dismiss (ECF No. 7) is GRANTED. An order consistent with this Memorandum Opinion is separately and contemporaneously issued. Dated: September 23, 2021 RUDOLPH CONTRERAS
United States District Judge CLP are binding on this Court. It goes without saying that the Court must follow Supreme Court precedent on this issue over the opinions of the D.C. Superior Court in matters of the Court’s very authority to hear cases.
Notes
[1] The Court notes that, in contrast to a recent similar case involving CLP in this District,
neither party has asked this Court to remand to the D.C. Superior Court.
See Clean Label
Project Found. v. Now Health Grp., Inc.
, 21-cv-0011,
[2] Because the Court will grant dismissal on the basis of Garden of Life’s motion to dismiss for lack of subject matter jurisdiction, it need not lay out the relevant standard governing motions to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim.
[3] CLP (perhaps wisely) also does not attempt to argue that it has standing due to its
purchase of Garden of Life’s prenatal products. While an economic injury “constitutes a distinct
and palpable injury,”
Ciba–Geigy Corp. v. EPA
,
[4] The Court also notes that while presumably CLP has expended resources on this
lawsuit, a “diversion of resources to litigation or investigation in anticipation of litigation does
not constitute an injury in fact sufficient to support standing.”
Equal Rts. Ctr
.,
[5] CLP attempts to differentiate this case from Beyond Pesticides based on minor factual discrepancies, such as the greater number of tests performed by CLP in this case and what it seems to contend is more egregious false advertising in the case at hand ( e.g ., contrasting Garden of Life’s statement that its Products provide “clean nourishment” compared to the “all natural” applesauce claim at issue in Beyond Pesticides —both highly similar assertions in the Court’s estimation). Pl.’s Opp’n at 7–8. But neither distinction adequately refutes the key legal holding at issue: that Article III standing cannot rest solely on the fulfillment of the statutory provisions of the CPPA in the absence of a concrete injury.
[6] CLP argues that the 2013 amendments to the CPPA should change the Court’s analysis.
Pl.’s Opp’n at 3 (“Since the 2013 amendments to the CPPA took effect, courts have freely found
standing for organizational plaintiffs.”). This is unconvincing for a couple of reasons. First, the
small handful of cases cited by CLP in support of this proposition are all D.C. Superior Court
cases that rely on federal precedent that predates
Spokeo
. For example, CLP cites heavily to
The
Nat. Consumers League v. Bimbo Bakeries USA
, a D.C. Superior Court case that held that the
plaintiff could demonstrate an injury in fact by showing a deprivation of a statutory right under
the CPPA to be free from improper trade practices. No. 2013 CA 006548 B,
