BINAKONSKY v. JM BRANDS LLC

CourtDistrict Court, W.D. Pennsylvania
DecidedJuly 14, 2022
Docket2:21-cv-00444
StatusUnknown

This text of BINAKONSKY v. JM BRANDS LLC (BINAKONSKY v. JM BRANDS LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BINAKONSKY v. JM BRANDS LLC, (W.D. Pa. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA RACHEL D. BINAKONSKY, on behalf —) of herself and all others similarly situated, ) ) Plaintiff ) 2:21-CV-444-NR “ JM Brands, INC., ) Defendant ) OPINION J. Nicholas Ranjan, United States District Judge Up until about 2019, JM Brands advertised its PureZero hair care products as “Natural Haircare.” The bottles displayed this slogan prominently below the brand name, and specified that there were “ZERO Sulfates, Parabens, Dyes, Phosphates, Phthalates [or] Gluten.”

ou reZero

12,

= HEMP eENEWING 4AMPOO

Over several years – most recently in December 2019 – plaintiff Rachel Binakonsky purchased at least two types of PureZero products from various retail stores. ECF 1, ¶ 47. After reading the front labels, Ms. Binakonsky interpreted ‘natural’ to mean that the products contained no synthetic ingredients. Id. The back of the bottles enumerated the full ingredients list in finer print, but Ms. Binakonsky did not examine the back labeling thoroughly. See id. Later, Ms. Binakonsky discovered that the products she purchased did in fact include synthetic ingredients. Id. at ¶ 20. Feeling deceived, she sued JM Brands for false advertising, on behalf of herself and other potential class members who purchased PureZero products.1 JM Brands moves to dismiss all four counts in the Complaint, raising three main arguments. First, it argues that federal product-labeling law preempts Ms. Binakonsky’s claims. Second, it argues that Ms. Binakonsky lacks standing to bring her claims. Third, it argues that a heightened pleading standard applies, and that Ms. Binakonsky accordingly fails to state her claims. After carefully considering the parties’ arguments and relevant law, the Court will grant the motion in part and deny it part. Specifically, the Court will deny the motion, except as to the claims based on implied warranty and “advertising/marketing” practices. DISCUSSION & ANALYSIS I. Ms. Binakonsky’s claims are not preempted, and the Court declines to invoke primary jurisdiction. The FDA is the entity with the primary authority to determine whether a cosmetic is misbranded.2 However, the FDA has not yet issued a clear definition of

1 The Complaint asserts four counts: (1) violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, 73 Pa. Stat. Ann. §§ 201-1 et seq. (the “UTPCPL”); (2) breach of express warranty; (3) breach of implied warranty of merchantability; and (4) unjust enrichment.

2 See www.fda.gov/cosmetics/cosmetics-guidance-regulation. “natural” as applied to cosmetics. JM argues that the Food, Drug, and Cosmetic Act (FDCA) and the FDA’s regulatory scheme preempt a private plaintiff from bringing a lawsuit that turns on whether a product is “natural.” ECF 11, pp. 8-10. In the alternative, JM asks the Court to invoke primary jurisdiction and refer the matter to the FDA for clarification, given the agency’s subject matter expertise. Id. But consumer protection is an area of traditional state police power. Accordingly, there is a presumption against preemption by federal statute. Wyeth v. Levine, 555 U.S. 555, 565 (2009) (“In all pre-emption cases, and particularly those in which Congress has legislated in a field which the States have traditionally occupied, we start with the assumption that the historic police powers of the States were not to be superseded by the Federal Act unless that was the clear and manifest purpose of Congress.” (cleaned up)); Holk v. Snapple Beverage Corp., 575 F.3d 329, 334-35 (3d Cir. 2009) (“In areas of traditional state regulation, we assume that a federal statute has not supplanted state law unless Congress has made such an intention clear and manifest. This requires that, if confronted with two plausible interpretations of a statute, we have a duty to accept the reading that disfavors pre-emption.” (cleaned up)). The Court finds that JM has not overcome this presumption, for at least three reasons. First, contrary to JM’s argument, Ms. Binakonsky is not seeking a different labeling requirement, which would raise express preemption concerns. JM argues that Ms. Binakonsky seeks to impose a labeling requirement that is “different from or in addition to” FDA requirements, which would squarely conflict with the FDCA. ECF 14, pp. 4-5. Not so. The PureZero bottles already list the ingredients, and Ms. Binakonsky is not requesting that the label be required to disclose which ones are synthetic. See generally ECF 1. Instead, she seeks damages for being misled by the label of “natural.” Id. at ¶ 121. Thus, her claim does not run afoul of the FDCA. Lee v. Conagra Brands, Inc., 958 F.3d 70, 77 (1st Cir. 2020) (declining to apply preemption where the complaint sought “damages resulting from [defendant’s] alleged misrepresentation” and plaintiff did “not request a specific, court-ordered label,” since defendant “would not be required to disclose affirmatively whether [the product] contains GMOs”); Astiana v. Hain Celestial Grp., Inc., 783 F.3d 753, 758 (9th Cir. 2015) (declining to apply preemption where plaintiff claimed “deception as a result of advertising statements that contradicted the true ingredients listed on the FDA- mandated label”).3 Second, field preemption doesn’t apply. JM contends that the FDA’s regulatory scheme “occupies the field,” and that the FDA’s failure to regulate the term “natural” is itself a regulatory decision – that is, a conscious decision not to regulate. ECF 14, pp. 4-5. But “[t]here is no federal preemption in vacuo. … [M]ere deliberate agency inaction – an agency decision not to regulate an issue – will not alone preempt state law.” Fellner v. Tri-Union Seafoods, LLC, 539 F.3d 237, 247 (3d Cir. 2008). Instead, “congressional intent to supersede state laws must be ‘clear and manifest,’” even if a regulatory scheme seems detailed. Holk, 575 F.3d at 336, 339 (cleaned up). Agency policy statements and correspondence also cannot occupy the field. See ECF 11, p. 20; ECF 14, p. 5 n.1. That’s because only traditional notice-and-comment rulemaking provides the requisite “‘fairness and deliberation’ which would suggest that Congress intended the agency’s action to be a binding and exclusive application of federal law.” Fellner, 539 F.3d at 237 (citations omitted). Therefore, “[s]tate law

3 In some cases, an injunction imposing a labeling requirement could be preempted by the FDCA. But that doesn’t seem to be a serious risk in this case. To begin with, as JM has argued, it has stopped using the term “natural” on its products, so there is nothing to enjoin. ECF 11, pp. 4-5. But even if an injunction were warranted, a prohibitory injunction restraining the use of a certain term or word on a bottle is materially different than a mandatory injunction requiring an affirmative representation on the bottle. Ms. Binakonsky seeks the former, which doesn’t give rise to a conflict with federal labeling requirements. See Astiana, 783 F.3d at 758 (“[Plaintiff] is not asking [Defendant] to modify or enhance any aspect of its cosmetics labels that are required by federal law.”). is not preempted whenever an agency has merely ‘studied’ or ‘considered’ an issue; state law is preempted when federal law conflicts with state law.” Id. at 254 (emphasis in original). So JM cannot rely on previous policy statements or advisory letters as a basis for preemption. Holk, 575 F.3d at 340 (“the FDA’s policy statement regarding use of the term ‘natural’ is not entitled to preemptive effect.”).

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Bluebook (online)
BINAKONSKY v. JM BRANDS LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/binakonsky-v-jm-brands-llc-pawd-2022.