Moran v. Bondi Sands (USA) Inc.

CourtDistrict Court, N.D. California
DecidedApril 29, 2022
Docket4:21-cv-07961
StatusUnknown

This text of Moran v. Bondi Sands (USA) Inc. (Moran v. Bondi Sands (USA) Inc.) 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
Moran v. Bondi Sands (USA) Inc., (N.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 MICHELLE MORAN, Case No. 21-cv-07961-JSW

8 Plaintiff, ORDER GRANTING, IN PART, AND DENYING, IN PART, MOTION TO 9 v. DISMISS AND SETTING INITIAL CASE MANAGEMENT CONFERENCE 10 BONDI SANDS (USA) INC., et al., Re: Dkt. No. 29 Defendants. 11

12 13 This matter comes before the Court upon consideration of the motion to dismiss filed by 14 Defendant Bondi Sands (USA), Inc. (“Bondi Sands”).1 The Court has considered the parties’ 15 papers, relevant legal authority, and the record in this case. The Court also has granted the parties’ 16 stipulation allowing Plaintiff, Michelle Moran (“Moran”), to file a second amended complaint. 17 For the reasons that follow, the Court HEREBY GRANTS, IN PART, AND DENIES, IN PART, 18 Bondi Sands’ motion. 19 BACKGROUND 20 In the summer of 2021, Moran purchased can of Bondi Sands’ aerosol fragrance-free 21 sunscreen (“Purchased Product” or the “Product”). (First Amended Class Action Complaint 22 (“FACC”), ¶ 8, Ex. 1-5.) The front label of the Purchased Product includes the phrase “Reef 23 Friendly.” (Id., Ex. 1-5.) Moran alleges that the term Reef Friendly “led her to believe that the 24 [Purchased] Product’s ingredients were all reef-safe and otherwise could not harm reefs, including 25 the coral reefs and marine life that inhabits and depends on them.” (Id. ¶ 8.) 26

27 1 This case is one of seven cases Plaintiff’s counsel has filed that challenge the terms “Reef Friendly” or “Reef Safe” on sunscreen products, including another case filed on Moran’s behalf. 1 According to Moran, the Purchased Product, and other similar products containing the 2 Reef Friendly statement (collectively “Bondi Sands’ Products”), actually contain chemical 3 ingredients, such as avobenzone, homoslate, octisalate, and/or octorylene, which “are not safe for 4 reefs because they can harm and/or kill reefs, including the coral reefs and the marine life that 5 inhabits or depends on them.”2 (Id. ¶ 3; see also id. ¶¶ 24-28.) Moran alleges she was not aware 6 of that fact when she purchased the Product, and would not have purchased the Product, or would 7 have paid substantially less for it, had she known the truth. (Id. ¶¶ 8, 72). Moran also alleges that 8 she continues to see Bondi Sands’ Products that use Reef Friendly on the labels. She would like to 9 purchase them in the future, if that representation was true, but because she does not “possess any 10 specialized knowledge, skill, experience, or education in sun care products,” she has no way to 11 determine the truth. (Id.; see also id. ¶ 9.) 12 Based on these and additional allegations that the Court will address in the analysis, Moran 13 seeks relief on behalf of herself and putative classes for violations under each prong of 14 California’s Unfair Competition Law (the “UCL Claim”), for violations of California’s False 15 Advertising Law (the “FAL Claim”), for violations California’s Consumer Legal Remedies Act 16 (the “CLRA Claim”), for breach of warranty, and for unjust enrichment. 17 ANALYSIS 18 A. The Court Denies Bondi Sands’ Motion to Invoke the Primary Jurisdiction Doctrine. 19 Bondi Sands moves to dismiss or stay pursuant to the primary jurisdiction doctrine. “The 20 primary jurisdiction doctrine allows courts to stay proceedings or to dismiss a complaint without 21 prejudice pending the resolution of an issue within the special competence of an administrative 22 agency.” Clark v. Time Warner Cable, 523 F.3d 1110, 1114 (9th Cir. 2008). It is a “prudential” 23 doctrine “under which a court determines that an otherwise cognizable claim implicates technical 24 and policy questions that should be addressed in the first instance by the agency with regulatory 25 authority over the relevant industry rather than by the judicial branch.” Id. It is “not designed to 26 2 Moran included Bondi Sands’ Hydra UV Protect products in the FAC. Bondi Sands 27 moved to dismiss on the basis that those products are sold only in Australia. Based on that 1 secure expert advice from agencies every time a court is presented with an issue conceivably 2 within the agency’s ambit.” Id. 3 The determination of whether an action should be stayed pursuant to the primary 4 jurisdiction doctrine is a matter for the Court’s discretion. Syntek Semiconductor Co., Ltd. v. 5 Microchip Tech. Inc., 307 F.3d 775, 781 (9th Cir. 2002). In considering this issue, courts have 6 “traditionally employed such factors as (1) the need to resolve an issue that (2) has been placed by 7 Congress within the jurisdiction of an administrative body having regulatory authority (3) 8 pursuant to a statute that subjects an industry or activity to a comprehensive regulatory authority 9 that (4) requires expertise or uniformity in administration.” Id. (citing United States v. General 10 Dynamics Corp., 828 F.2d 1356, 1362 (9th Cir. 1987)). 11 The Food and Drug Administration (“FDA”) has promulgated regulations and labelling 12 requirements for over the counter (“OTC”) sunscreens. Bondi Sands also notes Congress is 13 considering legislation that would require the FDA, in consultation with other agencies, to develop 14 labelling requirements for the term “Reef Safe.” The legislation was introduced in July 2021 and, 15 to date, has not been passed. Each version of the proposed bill also provides the FDA with at least 16 two-years from the date the law is enacted to develop those requirements.3 Moran does not 17 seriously dispute that this is an area that would fall within the FDA’s expertise and that it has not 18 yet been addressed. However, “primary jurisdiction is not required when a referral to the agency 19 would significantly postpone a ruling that a court is otherwise competent to make.” Astiana v. 20 Hain Celestial Gp., Inc., 783 F.3d 753, 760-61 (9th Cir. 2015) (internal citations and quotations 21 omitted). “[E]fficiency is the deciding factor in whether to invoke primary jurisdiction.” 22 In one of the other cases that Moran’s counsel has filed in this District, the court 23 considered this issue and determined that, at this juncture, action by the FDA appeared too remote 24 to warrant invocation of the doctrine. White v. The Kroger Co., No. 21-cv-08004-RS, 2022 WL 25 888657, at *2-3 (N.D. Cal. Mar. 25, 2022). The Court concurs and, in light of that uncertainty, 26

27 3 See https://www.congress.gov/bill/117th-congress/house-bill/4800/text 1 concludes invoking the doctrine would not be efficient. 2 Accordingly, the Court DENIES, IN PART, Bondi Sands’ motion on that basis. 3 B. The Court Denies Bondi Sands’ Motion to Dismiss Based on FDCA Preemption. 4 Bondi Sands also argues Moran’s claims are preempted by the Food, Drug, and Cosmetic 5 Act (“FDCA”), 21 U.S.C. sections 301, et seq. The FDCA contains a preemption provision, 6 which provides that “no State ... may establish or continue in effect any requirement ... that is 7 different from or in addition to, or that is otherwise not identical with a requirement under the 8 [FDCA].” 21 U.S.C. § 379r(a)(2). The FDA’s regulations governing OTC sunscreen do not 9 currently address environmental claims. 10 Moran argues she asks only that the Reef Friendly phrase be removed from the label.

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Bluebook (online)
Moran v. Bondi Sands (USA) Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/moran-v-bondi-sands-usa-inc-cand-2022.