Krommenhock v. Post Foods, LLC

255 F. Supp. 3d 938, 2017 WL 2378029, 2017 U.S. Dist. LEXIS 84359
CourtDistrict Court, N.D. California
DecidedJune 1, 2017
DocketCase No. 16-cv-04958-WHO
StatusPublished
Cited by27 cases

This text of 255 F. Supp. 3d 938 (Krommenhock v. Post Foods, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krommenhock v. Post Foods, LLC, 255 F. Supp. 3d 938, 2017 WL 2378029, 2017 U.S. Dist. LEXIS 84359 (N.D. Cal. 2017).

Opinion

ORDER ON MOTION TO DISMISS

William H. Orrick, United States District Judge

INTRODUCTION

Plaintiffs Debbie Krommenhock and Stephen Hadley bring this putative class action on behalf of a class of California consumers who purchased “high-sugar” cereal products manufactured by defendant Post Foods, LLC (“Post”). According to plaintiffs, those products’ labels contain health and wellness claims that are- false and misleading due to the cereals’ high added sugar content. Under plaintiffs’ sprawling theories, Post’s labels violate various California consumer protection statutes because the cereal labels’ falsely and misleadingly suggest the cereals’are healthy but they are not because consumption of excessive amounts of added sugar can cause adverse health conditions. Post moves to dismiss, arguing that plaintiffs’ claims are preempted by federal law, none of the challenged labeling claims are illegal, no reasonable consumer could be misled by the alleged health and wellness claims, and plaintiffs lack standing to pursue many of their legal theories. Preemption does not apply to most of plaintiffs’ claims. Post’s motion is granted in part and denied in part as outlined below.

BACKGROUND

I. REGULATORY SCHEME

A. Food Product Labeling

The Federal Food, Drug, and Cosmetic Act (“FDCA”) was enacted -in 1938 and prohibits the misbranding- of food. The Food and Drug Administration (“FDA”) [944]*944enforces the FDCA and develops regulations governing the labeling of food products: Congress amended-the FDCA in 1990 through the passage of the Nutritional Labeling and Education Act (“NLEA”). The purpose of the NLEA was to “ ‘clarify and to strengthen [FDA’s] authority to require nutrition labeling on foods, and to establish the circumstances under which claims may be made about the nutrients in foods.’ ” Nat’l Council for Improved Health v. Shalala, 122 F.3d 878, 880 (10th Cir. 1997) (quoting H.R.Rep. No. 101-538, at 7 (1990), reprinted in 1990 U.S.C.C.A.N. 3336, 3337). The various subsections of 21 U.S.C. § 343 set forth the conditions under which food is deemed “misbranded.” In general, food is misbranded under 21 U.S.C. § 343(a)(1) if “its labeling is false or misleading in any particular.” The Sherman Law expressly incorporates the FDCA (as amended by NLEA) as California’s own law. Cal. Health & Safety Code § 110100.

B. Food and Drug Administration Rulemaking on Added Sugar

In early 2012, the FDA initiated its rule-making process to amend regulations governing nutrition labeling of conventional food products. In May 2016, the FDA issued a final rule which, among other things, revised food labeling requirements regarding “added sugars.” The provisions relevant here require manufacturers to include on the Nutrition Facts Panel (“Panel”) “the gram amount of ‘added sugars’ in a serving of a product, establishing a Daily Reference Value (DRV), and requiring the percent Daily Value (DV) declaration for added sugars.” 81 Fed. Reg. 33,741, at 33,744. Additionally, the final rule requires the Nutrition Facts Panel to change “Sugars” to “Total Sugars” and requires that “Includes ‘X’g Added Sugars” be indented and declared directly below “Total Sugars” on the label. 81 Fed. Reg. 33,741, at 33,744. The final rule became effective on July 26, 2016, and sets a compliance date of July 26, 2018,1 to allow manufacturers a two-year window “to analyze products and to review, update, change, and print labels.” 81 Fed. Reg. 33,741, at 33,967.

The final rule establishes a DRV. of 10 percent of total calories from added sugar, despite the American Heart Association’s recommendation that the maximum amount be 5 percent.2 81 Fed. Reg. 33,741, at 33,849. Responding to the AHA’s recommendation, the FDA stated “[w]e disagree that the DRV for added sugars should be lower than 10 percent of calories or that there is adequate evidence at this time to set a DRV for added sugars of less than 5 percent calories,” and noted that the 10 percent figure “is more realistic considering current consumption of added sugars in the United States.” 81 Fed. Reg. 33,741, at 33,849. The FDA also declined to convey that the DRV of 10 percent “is a maximum rather than a recommended amount,” noting that “such language would not be appropriate because we do not require this information for other nutrients with DRVs.” 81 Fed. Reg. 33,741, at 33,829.

II. FACTUAL AND PROCEDURAL BACKGROUND

Post is the third largest cereal manufacturer in the United States, and produces, markets, and sells the 44 cereal products at issue in this case.3 FAC ¶¶ 110, 118. [945]*945Plaintiffs Debbie Krommenhock and Stephen Hadley are California residents and consumers of Post’s cereal products.4 FAC ¶1¶ 4-5, 335, 356. Plaintiffs allege that Post falsely and misleadingly labels its high-sugar cereals5 with health and wellness statements which “suggest its cereals are healthy food choices” when in fact these cereals contain high amounts of added sugar, “such that their regular consumption is likely to contribute to excess added sugar consumption and, thereby, increased risk for and contraction of chronic disease.” FAC ¶¶ 114,116. Plaintiffs allege that Post employs its “longtime practice of intentionally and strategically marketing high-sugar cereals with health and wellness claims that both deceptively suggest the products are healthy, and deceptively omit the dangers of consuming the products” to “artificially and fraudulently inflate” the price and market demand for its high-sugar cereals. FAC ¶ 323, 378.

As background for their allegations, plaintiffs cite to numerous scientific studies and medical publications to show that excess sugar intake is associated with various adverse health conditions and diseases including metabolic syndrome, type 2 diabetes, cardiovascular disease, liver disease, and obesity. FAC ¶¶ 40-109. When purchasing Post’s high-sugar cereals, plaintiffs read and relied on Post’s deceptive labeling claims suggesting that its cereals were healthy, and as a result, plaintiffs’ suffered monetary damages and “bodily injury in the form of increased risk of CHD, stroke, and other morbidity.” FAC ¶¶ 347, 355, 376, 384. One of the main sources of support plaintiffs rely on is the American Heart Association’s recommendation of a DRV of 5 percent total calories from added sugar. FAC ¶26. According to the AHA Scientific Statement, sugar in excess of this amount is not safe and impacts the health of the liver among other organs. Id. ¶¶ 26-30.

[946]*946■After laying out allegations, regarding the dangers of consumption of. high amounts of sugar, and identifying the challenged marketing claims for each of the 44 products, plaintiffs assert Post violates California, law in numerous ways as described below.

A. Health and Wellness Claims that are Deceptive in Light of the High Sugar Content

Plaintiffs allege that Post makes a number of deceptive and misleading claims on its cereal labels that are deceptive and misleading because

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Bluebook (online)
255 F. Supp. 3d 938, 2017 WL 2378029, 2017 U.S. Dist. LEXIS 84359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krommenhock-v-post-foods-llc-cand-2017.