Organic Consumers Association v. Hain Celestial Group, Inc.

CourtDistrict Court, District of Columbia
DecidedJanuary 3, 2018
DocketCivil Action No. 2016-0925
StatusPublished

This text of Organic Consumers Association v. Hain Celestial Group, Inc. (Organic Consumers Association v. Hain Celestial Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Organic Consumers Association v. Hain Celestial Group, Inc., (D.D.C. 2018).

Opinion

UNITED sTATEs DIsTRICT COURT FOR THE DISTRICT oF COLUMBIA

0RGAN1C CoNsUMERs AssoclATIoN, Plaimirf, _ ease No.` 1;16-cv-00925 (TNM) V.

HAIN CELESTIAL GROUP, INC.,

Defendant.

MEMORANDUM oPlNIoN The Organic Consumers Asscciation (“Plaintiff”) brings this action under the

District of Columbia Consurn'er Protection Procedures Act (“CPPA”), seeking to prevent Defendant Hain Celestial Group, Inc_ (“Hain Celestial”) from labeling its “Eanh’s Best” n infant and toddler formula products as “organic,” at least when those products are in the l District of Columbia. The complaint’s only count alleges that the products contain -_synthetic ingredients that are not permitted under the federal Organic Food Production l Act of 1996 (“OFPA”), and thus the “organic” label is a misrepresentation that violates the CPPA_ Hain Celestial moves to dismiss, contendingj inter alfa, that private enforcement of organic labeling via state law is preempted by'the OFPA. For the reasons l that follow, l conclude that PlaintiffJ s claim is federally preemptedj and grant the motion

to dismiss _ _I. BACKGROUND

Plaintiff filed a single-countcomplaint in D.C. Superior Court, alleging that Hain

Celestial’S infant and toddler formulas under the “Earth’s Best” brand (the “Challenged

Products”) contain “[a]t least 29 ingredients” (the “Challenged Ingredients”) not_ permitted under the OFPA. Compl. 4_ According to Plaintiff, these ingredients are “nonagricultural substances,” some of Which pose health risks to the public, and all of which are illegal in “organic” infant formula because they are not permitted under the OFPA and its regulations Compl. 4, 12-23. Plaintitf seeks a declaration that Defendant’s conduct in marketing the Challenged Pro_ducts violates the CPPAj an order enjoining the conduct and requiring “corrective advertising and revised labeling,” costs and disbursements (including attorneys’ fees)J and punitive damages Cornpl. 27-28_ Hain _Celestial removed to federal court on the basis of diversity and federal ' question jurisdictionJ and Plaintiff did not contest the removal. Hainl Celestial moves to

dismiss the complaint in its entirety1 I. LEGAL sTANDARDs

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face_”’ Ashcroj? v. Iqbdl, 556 U.S. 662, 678 (2009) (q_uoting BellAtl. 'Corp. v. Twombly, 550 U:S. 544, 570 (2007)). “A claim crosses from conceivable to plausible when it contains factual allegations that, if proved, vvouldl ‘allo'w the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.”’ Banneker Ventur'es, LLC v. Graham, 798 F.3d ll l9, 1129 (D.C_ Cir. 2015) (alteration omitted) (quoting Iqbal, 556 U.S. at

678). In undertaking this inquiry, the court Will “accept all the Well-pleaded factual

f In the alternative Defendant seeks summary judgment Or a stay ofthis action pending rulemaking under the primary jurisdiction of the USDA_

allegations of the complaint as true and draw all reasonable inferences from those allegations in the plaintiffs favor.” Id. However, we do not assume the truth of legal

conclusions Id.

`II. ANALYSIS n A. Standing

Because jurisdiction is a threshold question, I begin by considering whether Plaintiff has standing2 Defendant contends that Plaintiff has failed to adequately plead a concrete “injury-in-fact,” part of the “‘irreducibie constitutional minimum’ of Article III . standing Shaw v. Marriott ]m"l, Inc., 605 F.3d 1039, 1042 (D_C_ Cir. 201'0) (quoting l Lujcm v. Defenders of Wl'ldlg'fe, 504 U.S. 555, 560-61 (1992)); Def.’s Mot_ Dismiss 10-15. ' But the complaint alleges, inter alia, that because it exists to promote the interests of organic consumers, Plaintiff funds programs aimed at informing organic consumers about , the dangers of synthetic and genetically-modified ingredients, appealing directly to manufacturers like Hain Celestial, and advocating for stricter organic standards with . government actors Compl. 8§ 1111 30-3] (citing Compl. Ex. 12). The Challenged Products embody what Plaintiff opposes, creating a “need to ‘counteract’ the

[Defendant’s] assertedly illegal practicesj” Faz`r Employment Council ofGrectrer

2 The requirements for both diversity and federal question jurisdiction are satisfied As for diversity jurisdiction under 28 U_S_C_ § 1332, Plaintiff is a Minnesota corporation, While Defendant a Delaware corporation with its principal place of business in the state of New York, and the amount in controversy exceeds $75,000`_ See Notice of Removal 3- 4; 28 U.S,C. § l446(c)(2)(B). The Court also has federal question jurisdiction under 28 - U.S.C. § l331, because this is a “state-law claim [that] necessarily raise[s] a stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally approved balance of federal and state judicial responsibilities.” Grable & Sons Meral Prod., Inc. v. Darne Eng ’g & Mfg., 545 U.S. 308, 314 (2005). `

Washingz‘on, Inc. v. BMCM/ctg Corp., 28 F_3d 1268, 1276 (D.C. Cir. 1994) (quoting Havens Realty Corp. v. Coleman,455 U.S. 363, 379 (198._2)), and requiring still more programmatic efforts Compl. Ex_ 12 (educational and political efforts, naming Earth’s Best infant formula a “worst offender”); Compl. 8 (“efl`orts to persuade . . . Earth’s _Best”). -

Based on these well-pleaded facts, I conclude that Plaintiff has sufficiently alleged injury-in-fact. When the dcfendant’s alleged violation has “perceptibly impaired” the plaintiff’s programs, “therecan be no question that the organization has suffered

injury in fact.” Faz`r Employmem Councr`l, 28 F.3d at 1276 (D.C. Cir. 1994) (quoting Hcrvens, 455 U.S. at 379) (The defendant’s “discriminatory actions have interfered With [] efforts and programs and have also required [plaintiff] to expend resources to counteract [the] alleged discrimination”))',` Spann v. Colom`al Vl`ll., Inc.-, 899 F.2d 24, 27-29 (D_C. Cir. 1990) (“[A]n organization establishes Article IIi injury if it alleges that purportedly illegal action increases the resources the group must devote to programs independent of its suit challenging the action”). And since Plaintiff satisfies Article III’s"‘irreducible

l minimum,” Lujcrn 504 U.S. at 560, it has little trouble demonstrating standing under the

31 C&

`CPP/L Which broadly confers standing on “a consumer, a nonprofit organization . . . on behalf of itself or any of its members,” and even “a public interest organization . . . on behalf of . . . aconsumer or a class of consumers," if the organization has a “sufficient nexus to the interests involved.” D.C. Code §§-28-3905(k)(l)(A), (C), (D); id. § 28-

3901(a) (d_efining “consumer” in the noun form toinclude a nonprofit organization or

public interest organization that “does or Would purchase _ _ _ goods or services”_ “in order

to test or evaluate qualities pertaining to use for p.ersonal, household, or'family purposes”);_Compl. 7-9, ‘|1 33.

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