ORDER DENYING MOTION TO DISMISS
[Motion filed on April 16, 2009]
I. BACKGROUND
Plaintiff Pom Wonderful produces and sells pomegranate juice and juice blends. Defendant Ocean Spray Cranberries also sells various bottled juices, including a pomegranate and cranberry juice blend it began selling in 2007 (the “Beverage”). (Compl. ¶ 18.)
Plaintiff alleges that while Defendant primarily markets the pomegranate and cranberry juices in its Beverage on its product label, the product is almost entirely comprised of apple and grape juice. (Id. ¶ 19-20.) Of the five juices that comprise the product, according to its label, cranberry juice ranks third and pomegranate juice ranks fifth. (Id. ¶ 22.) Therefore, Plaintiff alleges that Defendant made false and misleading representations regarding the primary ingredients of its product. Plaintiff also alleges that Defendant markets its product as being high in antioxidants, as is pomegranate juice, when in fact the Beverage does not contain high levels of antioxidants. (Id. ¶ 23.) According to Plaintiff, Defendant also made similar misrepresentations regarding its Beverage at its website “www.oceanspray. com.” (Id. ¶ 21.)
As a result of Defendant’s misrepresentations, Plaintiff states that Defendant’s
1) false advertising under the Lanham Act, 15 U.S.C. § 1125(a);
2) false advertising under California Business & Professions Code § 17500; and
3) unfair competition under California Business & Professions Code § 17200, et seq.
(Compl. 8-11.)
Defendant now moves to dismiss Plaintiffs complaint.
II. LEGAL STANDARD
Under Rule 12(b)(6), a complaint is dismissed when a plaintiffs allegations fail to state a claim upon which relief can be granted. Fed.R.Civ.P. 12(b)(6). When considering a 12(b)(6) motion, all allegations of material fact are accepted as true and should be construed in the light most favorable to the plaintiff.
Resnick v. Hayes,
III. DISCUSSION
A. Evidentiary Issues
Both parties submitted additional evidence to this Court for its consideration. Generally, a district court “may not consider any material beyond the pleadings” on a motion to dismiss (e.g, facts presented in briefs, affidavits, or discovery materials).
Hal Roach Studios, Inc. v. Richard Feiner & Co.,
B. Lanham Act — False Advertising Claim
Under the Lanham Act, any person that uses a “false description or representation” that is “in connection with any goods” is liable to another private individual “who believes he is or is likely to be damaged by the use of any such false description or representation.” 15 U.S.C. § 1125(a);
see generally Jarrow Formulas, Inc. v. Nutrition Now, Inc.,
In a sister case to this one where this Plaintiff has made similar allegations of false advertising, Pom Wonderful LLC v. The Coca Cola Company, the court stated in its order granting in part the defendant’s motion to dismiss:
if Pom’s Lanham Act claim were to focus on areas covered by the FFDCAand the FDA-implementing regulations, the Court would be required to interpret and apply FDA regulations as to the labeling of [defendant’s beverage], which the FDA has not considered or approved.
Pom Wonderful LLC v. The Coca Cola Company, CV 08-06237 SJO at *6 (C.D.Cal. February 10, 2009). However, the court also found that it was “largely unpersuaded” by the defendant’s arguments for FDA preclusion of Lanham Act claims, because Pom’s Lanham Act claim “extend beyond the ‘packaging’ and ‘name’ of [defendant’s beverage] to its ‘advertising’ and ‘marketing,’ including [defendant’s] website.” Id. at *7. The court concluded:
Because the Court, in contexts beyond [defendant’s beverage’s] formal name and labeling areas for which there are relevant FDA regulations, will not be required to interpret FDA regulations, Pom’s Lanham Act claim can proceed to the extent it seeks to redress [defendant’s] marketing and advertising in such areas.
Id. (emphasis added). This Court agrees with the above reasoning to the degree that Plaintiff may not seek to enforce the FFDCA through the Lanham Act. However, this Court does not find that the essential claim advanced by Plaintiff — that Defendant’s label misrepresents the primary ingredients of the Beverage — relies on a determination by the FDA or an interpretation of its regulations.
The “readily verifiable” allegation or fact of Defendant’s marketing representations does not directly or indirectly usurp the FDA’s role, because determining the primary ingredients of the Beverage and whether Defendant’s representations are misleading is not contingent on a decision of fact by the FDA or the enforcement of its regulations.
See Mut. Pharm. Co.,
As both sides acknowledge, there are a number of other requirements for the labels of multiple-juice beverages. The FFDCA requires that foods must be called by their “common or usual name” on product labels. 21 U.S.C. § 343(i). The FDA’s regulations further require that in a “multiple-juice beverage,” where the named juice is not the predominant juice, the common or usual name for the product must “[indicate that the named juice is present as a flavor or flavoring.” 21 C.F.R. § 102.33(d)(1). Regarding the picture of fruit on the label, the FDA requires that if the juice’s “organoleptic properties” are not recognizable or that its “nutrient profile” is diminished below the normal nutrient range, then “the source
Of course, as noted by the court in Pom Wonderful LLC v. The Coca Cola Company, it is theoretically possible to create a scenario where a court decision regarding Defendant’s product label may conflict directly with FDA regulations; but on its face Plaintiffs complaint does not contest or attempt to enforce the FFDCA or FDA regulation requirements. Accordingly, Plaintiff has stated a permissible claim under the Lanham Act for false advertising. See Williams v. Gerber Prods. Co., 552 F.3d 934, 940 (9th Cir.2008) (“We do not think that the FDA requires an ingredient list so that manufacturers can mislead consumers and then rely on the ingredient list to correct those misinterpretations and provide a shield for liability for the deception. Instead, reasonable consumers expect that the ingredient list contains more detailed information about the product that confirms other representations on the packaging”). To the degree that Plaintiffs claims may cause actual conflict with federal regulations, the Court declines to limit the scope of Plaintiffs allegations at this stage, without a better developed factual record and construing Plaintiffs complaint in the light most favorable to it.
Therefore, the Court finds that Plaintiffs Lanham Act claim is not precluded by the FFDCA or FDA.
C. State Law Claims
1. Preemption — Background 1
Pursuant to the Supremacy Clause, “Congress has the power to preempt state law.”
Crosby v. National Foreign Trade Council,
Supreme Court precedent establishes that state law is preempted in three circumstances, two of which are relevant here.
2
English,
If Congress includes an express preemption provision in a statute, the inclusion of this provision “implies — i.e., supports a reasonable inference-that Congress did not intend to pre[ ]empt other matters” beyond the provision’s reach.
Freightliner Corp.,
2. Express Preemption
Defendant first argues that Plaintiffs state law claims are expressly preempted under the FFDCA’s express preemption provision.
See
21 U.S.C. § 343-1. Because the FFDCA contains an express preemption provision, the Court must first focus on the “plain wording of the clause” to identify the “domain expressly preempted” by the language of the statute.
See Sprietsma v. Mercury Marine,
no State or political subdivision of a State may directly or indirectly establish under any authority or continue in effect as to any food in interstate commerce ... any requirement for the labeling of food of the type required by [various sections of the FFDCA] that [are] not identical to the requirement of such section ....
21 U.S.C. § 343-l(a)(2)-(3). The phrase “not identical to” means that “the State requirement directly or indirectly imposes obligations or contains provisions concerning the composition or labeling of food” that are “not imposed by or contained in the applicable provision [or regulation]” or “[d]iffer from those specifically imposed by or contained in the applicable provision [or regulation].” 21 C.F.R. § 100.1(c)(4). Therefore, this statutory framework expressly preempts state law that imposes obligations that are “not identical to” those FFDCA sections enumerated in Section 343-1, which for the most part are found in § 343.
See
21 U.S.C. § 343-l(a). Plaintiff may not bring a claim based on a violation of an identical state law; and it is preempted from extending its claims in a
Defendant argues that Plaintiffs state law claims are preempted by § 343, which establishes standards for “misbranded food” including, for example, when food is offered for sale under another name (§ 343(b)), when food is an imitation of another food (§ 343(c)), and the required prominence of a food’s information label (§ 343(f)). Plaintiffs state claims are for false advertising under California Business & Professions Code § 17500 and unfair competition under California Business & Professions Code § 17200,
et seq.
Neither of these statutes is identical to the FFDCA or its regulations, although § 17200 may be used to enforce violations of California law that are identical to the FFDCA. For example, California’s “Sherman Act” contains identical provisions to the FFDCA.
Farm Raised Salmon Cases,
However, the Court finds that any limitation is not expressly preempted in regards to claims based on false advertising or claims of unfair competition which are unrelated to the FDA regulations. Again, there is no preemption language under § 343-1 which addresses a false or misleading label or, for that matter, the breadth of issues indicated by an unfair competition law. As long as Plaintiffs state claims do not impose different requirements than the FFDCA or FDA regulations, these claims are not preempted.
Construing Plaintiffs complaint in the light most favorable to it, the Court finds that its state law claims are not expressly preempted.
3. Field Preemption
“The touchstone of [field] preemption is congressional intent.”
Martin v. Midwest Express Holdings, Inc.,
As noted in that opinion, consumer protection laws fall within the states’ historic police powers to protect the health and welfare of their citizens.
Farm Raised Salmon Cases,
With regard to the application of the FFDCA here, congressional intent is ascertainable though the Nutrition Labeling and Education Act (“NLEA”) of 1990, which amended the FFDCA and added its express preemption provision. In that amendment, Congress stated that the “ ‘[NLEA] shall not be construed to preempt any provision of State law, unless such provision is expressly preempted under section 403A of the [FFDCA].’ ”
Farm Raised Salmon Cases,
Therefore, the Court finds that Plaintiff’s state law claims are not barred by field preemption.
D. Primary Jurisdiction Doctrine
“The primary jurisdiction doctrine allows courts to stay proceedings or to dismiss a complaint without prejudice pending the resolution of an issue within the special competence of an administrative agency.”
Clark v. Time Warner Cable,
Defendant argues that there are complex labeling issues raised here that fall “squarely” within the FDA’s jurisdiction, and thus that this Court should refer Plaintiffs claims to the agency. However, while the FDA has regulatory authority in the area of food product labeling, this particular case does not require expertise or implicate uniformity in administration. For one, Plaintiffs claims are not based on technical area over which the FDA has more expertise than the courts.
See Lockwood v. Conagra Foods, Inc.,
As such, the Court finds that it is not appropriate to apply the primary jurisdiction doctrine here.
E. Pleading Requirements under Fed. R.Civ.P. 9(b)
Defendant argues that Plaintiff has not satisfied the heightened pleading requirements of Rule 9. The Ninth Circuit has not determined that Rule 9(b) applies to Lanham Act claims, although some dis
Plaintiff alleges that in April 2007, Defendant introduced its Beverage for the first time under the title “Cranberry and Pomegranate,” which misrepresented the product’s ingredients because it contains little or no pomegranate juice. (Compl. ¶ 18, 20.) Plaintiff alleges this title was used on the label of Defendant’s product, the Beverage, with the result of deceiving consumers. (Compl. ¶ 20.) Plaintiff also alleges that the Beverage was marketed as “cranberry and pomegranate” juice on its website — www.oceanspray.com. (Id. ¶ 21.) These allegations are sufficient to establish the “time, place, and specific content” requirements of Rule 9(b).
The Court finds that Plaintiff has satisfied its burden of pleading under Rule 9(b).
IV. CONCLUSION
For the foregoing reasons, the Court DENIES the motion to dismiss.
IT IS SO ORDERED.
Notes
. For the sake of clarity and efficiency, the Court will quote and repeat the background legal analysis and standards regarding preemption as found in Judge Otero’s opinion in Pom Wonderful LLC v. The Coca Cola Company, CV 08-06237 SJO at *8-9.
. A third category of preemption (not advanced by Defendant) is conflict preemption; where state law is preempted "to the extent that it actually conflicts with federal law,” making compliance with both federal and state law impossible, or where it "stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.”
English,
