Clean Label Project Foundation v. Garden of Life, LLC

District Court, District of Columbia·Decided September 23, 2021·No. Civil Action No. 2020-3229·Published

Opinion

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

GRANTING DEFENDANT GARDEN OF LIFE, LLC’S MOTION TO DISMISS 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

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., 511 U.S. 375, 377 (1994); see also Gen. Motors Corp. v. EPA, 363 F.3d 442, 448 (D.C. Cir. 2004). On a motion to dismiss for lack of subject matter jurisdiction pursuant to Rule 12(b)(1), the plaintiff bears the burden of establishing by a preponderance of the evidence that the court has subject matter jurisdiction. Lujan v. Defenders of Wildlife, 504 U.S. 555, 561 (1992).

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, 402 F.3d 1249, 1253–54 (D.C. Cir. 2005), and “must construe the complaint in favor of the complaining party,” Warth v. Seldin, 422 U.S. 490, 501 (1975). However, because subject matter jurisdiction focuses on the court’s power to even hear the claim, a court is to apply closer scrutiny when resolving a Rule 12(b)(1) motion compared to a Rule 12(b)(6) motion for failure to state a claim. See Food & Water Watch, Inc. v. Vilsack, 808 F.3d 905, 913 (D.C. Cir. 2015) (explaining that, in the context of standing analysis under the Rule 12(b)(1) legal standard, “we do not assume the truth of legal conclusions,

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, 2021 WL 2809106, at *9 (D.D.C. July 6, 2021) (remanding to state court after finding a lack of subject matter jurisdiction and denying the motion to dismiss as moot).

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.

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