Brinkerhoff v. L'Oreal USA, Inc.

District Court, S.D. California·Decided October 8, 2019·No. 3:18-cv-02034·Unknown

Opinion

KRISTEN BRINKERHOFF, On Case No.: 3:18-cv-2034-BTM-WVG Behalf of Herself and All Others Similarly Situated, ORDER GRANTING IN PART, Plaintiff, DEFENDANT’S MOTION TO DISMISS AND STAYING ACTION v. PENDING ADMINISTRATIVE L’ORÉAL USA, INC., ACTION

Defendant. [ECF No. 10] Defendant L'Oréal USA, Inc. manufactures, markets, distributes, and sells various skin care products, including CeraVe Eye Repair Cream (the "Cream"). (ECF No. 7, ¶ 1.) The Cream’s packaging prominently displays various representations regarding the Cream, including that it "help[s] repair and restore the . . . skin barrier around [users'] eyes" (hereinafter, the “Repair Representations”). (Id. ¶¶ 2, 12 & Ex. A.) In Fall 2017, Plaintiff Kristen Brinkerhoff purchased the Cream from an independent retailer for approximately fifteen dollars. (Id. ¶ 10.) Plaintiff alleges she relied upon the Repair Representations when she purchased the Cream, forgoing “less expensive competitor cosmetic eye products” based thereon. (Id.) Plaintiff subsequently learned, however, that Defendant had not presented the United States Food & Drug Administration (the “FDA”) with evidence of the Cream’s safety and effectiveness before its marketing and sale. (Id.) Plaintiff alleges she “would not have purchased the [Cream] and certainly would not have paid a premium price for it” had she known that the Repair Representations had not been approved by the FDA.1 (Id.) Plaintiff’s sole claim in her First Amended Complaint is that Defendant’s marketing and sale of the Cream was “unlawful” under California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200, et seq., because Defendant did not receive approval from the FDA prior to marketing and selling the Cream, which Plaintiff contends is a “drug” under the Federal Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. § 301, et seq., and California’s Sherman Food, Drug, and Cosmetic Law (“Sherman Law”), Cal. Health & Safety Code § 109875, et seq., in violation of the FDCA and Sherman Law. (Id. ¶¶ 2-4, 32-41.) Indeed, unlike purely cosmetic items, “new drugs” generally may not be marketed or sold without preapproval from the FDA through the New Drug Application (“NDA”) process.2 21 U.S.C. §§ 331(d) & 355; Cal. Health & Safety Code § 111550.

1 Notably, Plaintiff does not allege that she believed the Cream had been submitted to or otherwise been approved by the FDA at the time of her purchase. (See ECF No. 7, ¶ 10 (“Had Plaintiff known that the FDA prohibits manufacturers from selling products with repair and restore representations that the FDA had not determined are both safe and effective and that Defendant had not presented the FDA with the required evidence of safety and effectiveness, Plaintiff would not have purchased the [Cream] and certainly would not have paid a premium price for it.” (emphasis added)). 2 Under the FDCA, a “cosmetic” includes “articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance.” 21 U.S.C. § 321(i)(1); see also Cal. Health & Safety Code § Plaintiff contends that that the Repair Representations rendered the Cream a drug for which FDA preapproval via the NDA process was necessary. (ECF No. 7, ¶¶ 2, 16-19, 35.) Further, Plaintiff alleges that, “[b]y making the unlawful [Repair Representations,] Defendant is . . . able to charge a substantial premium for [the Cream] over what competitors charge for similar cosmetic eye products which . . . claim only to moisturize and visibly improve the skin’s appearance or look and do not make . . . unlawful drug claims.” (Id. ¶ 21.) Plaintiff alleges that “but for Defendant’s illegal conduct” of marketing the Cream with the Repair Representations without obtaining approval from the FDA, “the [Cream] would not have been on the market” and therefore she would have been unable to purchase it. (Id. ¶¶ 35-36.) In addition to seeking declaratory relief and an injunction preventing sale of the Cream with the Repair Representations until the NDA process is completed, Plaintiff seeks restitution of all money she paid for the Cream “or, at a minimum, the premium paid for the [Cream].” (Id. ¶ 39-41.) Defendant subsequently moved to dismiss Plaintiff’s claims for lack of standing, federal preemption, or, in the alternative, to stay this action or dismiss Plaintiff’s claim without prejudice and refer Plaintiff’s claim to the FDA pursuant to the “primary jurisdiction” doctrine. (ECF No. 10.) Because standing under Article III of the U.S. Constitution is an essential element of the Court’s subject matter jurisdiction, see Lujan v. Defs. of Wildlife, 504 U.S. 555, 560 (1992), the Court addresses it first. “[T]o satisfy Article III's the structure or any function of the body of man or other animals.” 21 U.S.C. § 321(g)(1)(C); 21 U.S.C. § 359; see also Cal. Health & Safety Code § 109925(c)(3). Notably, the FDCA differentiates between “drugs” and “new drugs.” Compare 21 U.S. § 321(g)(1) & (p). Only “new drugs” need to undergo the NDA process. 21 U.S.C. § 355(a) (“No person shall introduce or deliver for introduction into interstate commerce any new drug, unless an approval of an application filed pursuant to standing requirements, a plaintiff must show[:] (1) it has suffered an ‘injury in fact’ that is (a) concrete and particularized and (b) actual or imminent, not conjectural or hypothetical; (2) the injury is fairly traceable to the challenged action of the defendant; and (3) it is likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.” Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC), Inc., 528 U.S. 167, 180–81 (2000) (citing Lujan, 504 U.S. at 560-61) see also Lujan, 504 U.S. at 561 (“The party invoking federal jurisdiction bears the burden of establishing these elements.”). Where a 12(b)(1) motion to dismiss is based on lack of standing, the Court must defer to the plaintiff's factual allegations and must “presume that general allegations embrace those specific facts that are necessary to support the claim.” Lujan, 504 U.S. at 561 (internal quotation marks omitted). Indeed, “[a]t the pleading stage, general factual allegations of injury resulting from the defendant’s conduct may suffice.” Id. at 560. “To have standing under California's UCL, as amended by California's Proposition 64,3 plaintiffs must establish that they (1) suffered an injury in fact and (2) lost money or property as a result of the unfair competition.” Birdsong v. Apple, Inc., 590 F.3d 955, 959 (9th Cir. 2009) (citations omitted); Cal. Bus. & Prof. Code 3 “In 2004, the electorate substantially revised the UCL’s standing requirement; where once private suits could be brought by any person acting for the interests of itself, its members or the general public, now

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Brinkerhoff v. L'Oreal USA, Inc., (S.D. Cal. 2019).

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