Iglesias v. Arizona Beverages USA, LLC

District Court, N.D. California·Decided June 16, 2023·No. 4:22-cv-09108·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 THOMAS IGLESIAS, Case No. 22-cv-09108-JSW Plaintiff, 8 ORDER GRANTING, IN PART, AND 9 v. DENYING, IN PART, MOTION TO DISMISS 10 ARIZONA BEVERAGES USA, LLC, Re: Dkt. No. 34 Defendant. 11 12 13 Now before the Court for consideration is the motion to dismiss the first amended 14 complaint (“FAC”) filed by Defendant Arizona Beverages USA, LLC (“Defendant”). The Court 15 has considered the parties’ papers, relevant legal authority, and the record in the case and finds this 16 matter suitable for disposition without oral argument.1 See N.D. Civ. L.R. 7-1(b). For the 17 following reasons, the Court HEREBY GRANTS, IN PART, and DENIES, IN PART, 18 Defendant’s motion. 19 BACKGROUND 20 Plaintiff Thomas Iglesias (“Plaintiff”) brings this action alleging that Defendant falsely 21 advertises its Products2 as “100% Natural,” “100% All Natural,” and “All Natural” when in reality 22 the Products contain at least one of the following ingredients that are not natural: added coloring, 23 24 1 Defendant filed a request for judicial notice in connection with the motion to dismiss but subsequently withdrew the request. (Reply at 10.) The Court did not consider the request for 25 judicial notice in resolving Defendant’s motion. 2 Plaintiff challenges the labeling on the following products: AriZona Kiwi Strawberry Fruit Juice 26 Cocktail, Lemonade Fruit Juice Cocktail, Mucho Mango Fruit Juice Cocktail, Iced Tea with Peach Flavor, Arnold Palmer Half & Half Iced Tea Lemonade, Golden Bear Strawberry Lemonade, RX 27 Energy Herbal Tonic, Green Tea with Ginseng and Honey, Diet Peach Iced Tea, Diet Raspberry 1 (beta carotene, fruit and vegetable juices, and annatto); ascorbic acid, high fructose corn syrup 2 (“HFCS”); malic acid; erythritol; and natural flavors. (FAC ¶ 9; see id. ¶¶ 75-100.) Plaintiff 3 alleges that the added coloring agents, ascorbic acid, HFCS, malic acid, erythritol, and natural 4 flavors render the “all natural” label claims false and misleading. (Id. ¶ 72.) 5 Plaintiff purchased the Mucho Mango Fruit Juice Cocktail Product from a Foods Co. in 6 San Francisco, CA on several occasions beginning in 2017. (Id. ¶ 55.) Plaintiff alleges he relied 7 upon the labeling and advertising on the Product’s label in deciding to make his purchase, and he 8 would not have purchased the Product if he had known Defendant’s “natural” representations were 9 false and misleading. (Id.) Plaintiff alleges a desire to purchase the Products again in the future if 10 the “all natural” representations were true but that he will be unable to rely on the labeling absent 11 the relief he seeks here. (Id.) 12 Plaintiff brings claims for violations of California Consumers Legal Remedies Act, Cal. 13 Civ. Code sections 1750, et seq. (“CLRA”), California’s False Advertising Law, Bus. & Prof. 14 Code sections 17500, et seq. (“FAL”), California’s Unfair Competition Law, Bus. & Prof. Code 15 sections 17200 et seq. (“UCL”), breach of express warranty, and unjust enrichment. 16 The Court will address additional facts as necessary in the analysis. 17 ANALYSIS 18 A. Applicable Legal Standard. 19 A motion to dismiss is proper under Rule 12(b)(6) where the pleadings fail to state a claim 20 upon which relief can be granted. A court’s “inquiry is limited to the allegations in the complaint, 21 which are accepted as true and construed in the light most favorable to the plaintiff.” Lazy Y 22 Ranch Ltd. v. Behrens, 546 F.3d 580, 588 (9th Cir. 2008). Even under the liberal pleading 23 standard of Rule 8(a)(2), “a plaintiff’s obligation to provide the ‘grounds’ of his ‘entitle[ment] to 24 relief’ requires more than labels and conclusions, and a formulaic recitation of the elements of a 25 cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (citing 26 Papasan v. Allain, 478 U.S. 265, 286 (1986)). 27 Pursuant to Twombly, a plaintiff cannot merely allege conduct that is conceivable but must 1 claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw 2 the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 3 556 U.S. 662, 678 (2009) (citing Twombly, 550 U.S. at 556). “The plausibility standard is not 4 akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant 5 has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 556). 6 If the allegations are insufficient to state a claim, a court should grant leave to amend 7 unless amendment would be futile. See, e.g., Reddy v. Litton Indus., Inc., 912 F.2d 291, 296 (9th 8 Cir. 1990); Cook, Perkiss & Liehe, Inc. v. Northern Cal. Collection Serv. Inc., 911 F.2d 242, 246- 9 47 (9th Cir. 1990). 10 B. The Court Grants, In Part, and Denies, In Part, the Motion to Dismiss. 11 1. Preemption 12 Plaintiff alleges the “All Natural,” “100% Natural,” and “100% All Natural” labels on 13 Defendant’s Products are false and misleading because the Products contain various artificial and 14 synthetic ingredients. Defendant argues that Plaintiff’s claims based on natural flavors and 15 artificial colors are expressly preempted by the FDCA. The National Labeling and Education Act 16 (“NLEA”) “expressly preempts ‘any requirement for the labeling of food of the type required by’ 17 various labeling provisions that is not identical to those requirements.” Allen v. ConAgra Foods, 18 Inc., No. 13-cv-01279-JST, 2013 WL 473721, at *3 (N.D. Cal. Sept. 3, 2013) (citing 21 U.S.C. § 19 343-1(a)(2)-(5)). “Consumer protection laws (such as the UCL) are preempted if they seek to 20 impose requirements that contravene the requirements set forth by federal law.” Astiana v. Ben & 21 Jerry’s Homemade, Inc., No. 10-4387, 2011 WL 2111796, at *8 (N.D. Cal. May 26, 2011). 22 Plaintiff’s claims are not preempted. Contrary to Defendant’s argument, Plaintiff is not 23 challenging the use of term “natural flavors” nor do Plaintiff’s challenge any label claims related 24 to artificial colors. Rather, Plaintiff alleges that the “All Natural,” “100% Natural,” and “100% 25 All Natural” label claims are false and misleading under California consumer protection laws and 26 common law because, in part, they contain artificial and synthetic ingredients, including natural 27 flavors and artificial colors. Courts in this district have long “rejected the idea that unfair 1 Pratt v. Whole Foods Mkt. Cal., Inc., No. 5:12-cv-05652-EJD, 2014 2014 WL 1324288, at *6 2 (N.D. Cal. Mar. 31, 2014) (collecting cases). 3 The cases Defendant relies upon are inapposite. Defendant cites to Hairston v. South 4 Beach Beverage Co., Inc., No. CV 12-1429-JFW DTBX, 2012 WL 1893818 (C.D. Cal. May 18, 5 2012) as support for the contention that the “All Natural” claims are preempted, but Defendant’s 6 reliance on Hairston is misplaced. The plaintiff in that case challenged three label claims as false 7 and misleading: (1) “all natural with vitamins” because the product contained synthetic 8 ingredients; (2) the product’s use of fruits to name its flavors were misleading because the 9 products did not contain any of those fruits; and (2) the use of “common vitamin name[s]” was 10 misleading because the vitamins used were synthetic. Hairston, 2012 WL 1893818, at *1. The 11 defendants argued the second and third claims—fruit name and vitamin name claims—were 12 preempted, and the court agreed. Id., at *3.

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