All One God Faith, Inc. v. Organic & Sustainable Industry Standards, Inc.

183 Cal. App. 4th 1186, 107 Cal. Rptr. 3d 861, 2010 Cal. App. LEXIS 516
CourtCalifornia Court of Appeal
DecidedApril 13, 2010
DocketA123009
StatusPublished
Cited by22 cases

This text of 183 Cal. App. 4th 1186 (All One God Faith, Inc. v. Organic & Sustainable Industry Standards, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
All One God Faith, Inc. v. Organic & Sustainable Industry Standards, Inc., 183 Cal. App. 4th 1186, 107 Cal. Rptr. 3d 861, 2010 Cal. App. LEXIS 516 (Cal. Ct. App. 2010).

Opinions

Opinion

BRUINIERS, J.

The federal government imposes mandatory standards governing the marketing of “organic” food and agricultural products, but provides only voluntary and permissive criteria for “organic” personal care products, such as soaps and lotions. (7 U.S.C. § 6501 et seq.; Organic Foods Production Act of 1990.) A trade association, Organic and Sustainable Industry Standards, Inc. (OASIS), seeks to develop a standard that would provide a definition of “organic” specific to beauty and personal care products [1192]*1192and would permit its members whose products meet this standard to advertise using an “OASIS Organic” seal on the product. All One God Faith, Inc., who does business as Dr. Bronner’s Magic Soaps (Dr. Bronner), filed suit against OASIS and certain of its members, alleging that this certification would constitute unfair competition and misleading advertising. OASIS filed a special motion to strike Dr. Bronner’s claim against it pursuant to the anti-SLAPP statute,1 Code of Civil Procedure section 425.16.2 OASIS appeals from the trial court’s denial of its motion. Dr. Bronner has filed a protective cross-appeal, contending that the motion should have also been denied under section 425.17. We affirm.

I. Factual and Procedural Background3

A. Dr. Bronner’s First Amended Complaint

Dr. Bronner filed suit in the San Francisco Superior Court seeking injunctive relief against several of its competitors and against OASIS under California’s unfair competition law. (Bus. & Prof. Code, § 17200 et seq.) Only the third cause of action is directed against OASIS.4 According to Dr. Bronner’s first amended complaint (FAC), Dr. Bronner “engages in the business, among other things, of manufacturing and selling . . . personal care and cosmetic products including the nation’s top-selling natural brand of liquid and bar soap in a number of varieties under the ‘Dr. Bronner’s Magic Soaps’ brand and lotions, hair rinses, shampoos, hair conditioners, shaving gels and balms under the brand, ‘Dr. Bronner’s Magic.’ ” Dr. Bronner’s products are labeled either as “Made with Organic Oils” or as “Organic” in accordance with voluntary criteria promulgated by the U.S. Department of Agriculture’s (USDA) National Organic Program (NOP), established under the Organic Foods Production Act of 1990.5 (7 U.S.C. § 6501 et seq.)

As the FAC explains, “[t]he NOP criteria only govern personal care products that voluntarily represent or imply that they meet the NOP criteria or carry the USDA organic seal. The NOP regulations do not apply to personal [1193]*1193care products that represent that they are organic but do not purport to comply with the NOP organic criteria and do not carry or imply that they carry the USDA organic seal.” Under the NOP criteria, a personal care product labeled “Organic” must contain at least 95 percent organically produced ingredients (excluding water and salt) and the remaining ingredients must consist of approved nonagricultural substances or nonorganically produced agricultural products that are not commercially available in organic form. Furthermore, under the NOP criteria, a personal care product labeled “Organic” or “Made with Organic [specified ingredients]” cannot contain any cleansing or moisturizing agents made of synthetic petrochemicals or petrochemical compounds. Processes such as hydrogenation and sulfation are not permitted to produce such agents.

Dr. Bronner alleges that OASIS is a commercial trade association and that its members include many of the other named defendants, who sell competing personal care products. Dr. Bronner alleges that OASIS was designed to represent and promote the commercial goals of its member companies in their efforts to sell “organic” personal care products. According to Dr. Bronner’s FAC, “[t]he primary immediate goal of OASIS has been to issue an industry standard for ‘organic’ personal care products, and to promote the commercial and sales goals of its members in the marketplace seeking to sell body care products to consumers seeking to purchase organic products. In doing so, OASIS acts as the agent of its trade association members as to whose products OASIS promotes through its purported certifications.”

Dr. Bronner contends that OASIS issued a new standard that would allow a product to be labeled as “Organic” even if containing cleansing agents made from nonorganic material that has been hydrogenated and/or sulfated, and preserved with synthetic petrochemicals. According to the allegations of the FAC, the development of the OASIS standard was “promoted principally by Defendant [Estée] Lauder[, Inc.,] but . . . was also supported by other Defendants including Hain Celestial [Group, Inc.,] and Cosway [Company, Inc.]”6 Dr. Bronner alleges that it has been informed that Estée Lauder “plans to imminently label its products as certified ‘Organic’ in accordance with the [OASIS] standard . . . .”7 Dr. Bronner seeks injunctive relief, claiming that “[u]nless OASIS is enjoined from such deceptive certification of products, and [Estée] Lauder is enjoined from marketing such products, Dr. Bronner’s [1194]*1194will lose business to Defendants [Estée] Lauder and other companies, as a result of the fact that Defendant OASIS’s certification of these products as ‘Organic’ constitutes an unfair and unlawful business practice and false and deceptive advertising, in that consumers . . . will be misled into buying these ■ OASIS-certified products instead of personal care products manufactured and sold by Dr. Bronner’s.” In its prayer for relief, Dr. Bronner asks that OASIS “be permanently enjoined from certifying as ‘Organic’ any product for sale within the State of California which cannot lawfully be labeled as ‘Organic’ under the NOP criteria . . . .”

B. OASIS’s Motion to Strike and Supporting Declarations

OASIS moved to strike Dr. Bronner’s third cause of action pursuant to section 425.16, arguing that OASIS was being sued for exercising its right to free speech—specifically, articulating and publishing its “OASIS Organic” standard. OASIS submitted a declaration from its volunteer chair of the board of directors, Gay Timmons (Timmons), which provides background information about OASIS.

OASIS is a mutual benefit trade association, organized under Internal Revenue Code section 501(c)(6),8 “formed in 2007 to promote the production of organic and sustainable health and beauty care products.” OASIS does not produce or manufacture any cosmetic or personal care products, nor is it engaged, nor does it intend to be engaged, in the business of selling or leasing goods or services.

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Cite This Page — Counsel Stack

Bluebook (online)
183 Cal. App. 4th 1186, 107 Cal. Rptr. 3d 861, 2010 Cal. App. LEXIS 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/all-one-god-faith-inc-v-organic-sustainable-industry-standards-inc-calctapp-2010.