POM Wonderful LLC v. Coca-Cola Co.

189 L. Ed. 2d 141, 24 Fla. L. Weekly Fed. S 846, 134 S. Ct. 2228, 2014 WL 2608859, 82 U.S.L.W. 4475, 2014 U.S. LEXIS 4165, 110 U.S.P.Q. 2d (BNA) 1877
Supreme Court of the United States·Decided June 12, 2014·No. 12–761.·Published·Cited by 161 cases

Opinion

Justice KENNEDY delivered the opinion of the Court.

POM Wonderful LLC makes and sells pomegranate juice products, including a pomegranate-blueberry juice blend. App. 23a. One of POM's competitors is the Coca-Cola Company. Coca-Cola's Minute Maid Division makes a juice blend sold with a label that, in describing the contents, displays the words "pomegranate blueberry" with far more prominence than other words on the label that show the juice to be a blend of five juices. In truth, the Coca-Cola product contains but 0.3% pomegranate juice and 0.2% blueberry juice.

Alleging that the use of that label is deceptive and misleading, POM sued Coca-Cola under § 43 of the Lanham Act. 60 Stat. 441 , as amended, 15 U.S.C. § 1125 . That provision allows one competitor to sue another if it alleges unfair competition arising from false or misleading product descriptions. The Court of Appeals for the Ninth Circuit held that, in the realm of labeling for food and beverages, a Lanham Act claim like POM's is precluded by a second federal statute. The second statute is the Federal Food, Drug, and Cosmetic Act (FDCA), which forbids the misbranding of food, including by means of false or misleading labeling. §§ 301, 403, 52 Stat. 1042 , 1047, as amended, 21 U.S.C. §§ 331 , 343.

The ruling that POM's Lanham Act cause of action is precluded by the FDCA was incorrect. There is no statutory text or established interpretive principle to support the contention that the FDCA precludes Lanham Act suits like the one brought by POM in this case. Nothing in the text, history, or structure of the FDCA or the Lanham Act shows the congressional purpose or design to forbid these suits. Quite to the contrary, the FDCA and the Lanham Act complement each other in the federal regulation of misleading food and beverage labels. Competitors, in their own interest, may bring Lanham Act claims like POM's that challenge food and beverage labels that are regulated by the FDCA.

I

A

This case concerns the intersection and complementarity of these two federal laws. A proper beginning point is a description of the statutes.

Congress enacted the Lanham Act nearly seven decades ago. See 60 Stat. 427 (1946). As the Court explained earlier this Term, it "requires no guesswork" to ascertain Congress' intent regarding this federal law, for Congress included a "detailed statement of the statute's purposes." Lexmark Int'l, Inc. v. Static Control Components, Inc., 572 U.S. ----, ----, 134 S.Ct. 1377 , 1389, 188 L.Ed.2d 392 (2014). Section 45 of the Lanham Act provides:

"The intent of this chapter is to regulate commerce within the control of Congress by making actionable the deceptive and misleading use of marks in such commerce; to protect registered marks used in such commerce from interference by State, or territorial legislation; to protect persons engaged in such commerce against unfair competition; to prevent fraud and deception in such commerce by the use of reproductions, copies, counterfeits, or colorable imitations of registered marks; and to provide *2234 rights and remedies stipulated by treaties and conventions respecting trademarks, trade names, and unfair competition entered into between the United States and foreign nations." 15 U.S.C. § 1127 .

The Lanham Act's trademark provisions are the primary means of achieving these ends. But the Act also creates a federal remedy "that goes beyond trademark protection." Dastar Corp. v. Twentieth Century Fox Film Corp ., 539 U.S. 23 , 29, 123 S.Ct. 2041 , 156 L.Ed.2d 18 (2003). The broader remedy is at issue here.

The Lanham Act creates a cause of action for unfair competition through misleading advertising or labeling. Though in the end consumers also benefit from the Act's proper enforcement, the cause of action is for competitors, not consumers.

The term "competitor" is used in this opinion to indicate all those within the class of persons and entities protected by the Lanham Act. Competitors are within the class that may invoke the Lanham Act because they may suffer "an injury to a commercial interest in sales or business reputation proximately caused by [a] defendant's misrepresentations." Lexmark, supra, at ----, 134 S.Ct., at 1395 . The petitioner here asserts injury as a competitor.

The cause of action the Act creates imposes civil liability on any person who "uses in commerce any word, term, name, symbol, or device, or any combination thereof, or any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, which ... misrepresents the nature, characteristics, qualities, or geographic origin of his or her or another person's goods, services, or commercial activities." 15 U.S.C. § 1125 (a)(1). As the Court held this Term, the private remedy may be invoked only by those who "allege an injury to a commercial interest in reputation or sales. A consumer who is hoodwinked into purchasing a disappointing product may well have an injury-in-fact cognizable under Article III, but he cannot invoke the protection of the Lanham Act." Lexmark, 572 U.S., at ----, 134 S.Ct., at 1390 .

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POM Wonderful LLC v. Coca-Cola Co., 189 L. Ed. 2d 141, 24 Fla. L. Weekly Fed. S 846, 134 S. Ct. 2228, 2014 WL 2608859, 82 U.S.L.W. 4475, 2014 U.S. LEXIS 4165, 110 U.S.P.Q. 2d (BNA) 1877 (U.S. 2014).

189 L. Ed. 2d 141 (POM Wonderful LLC v. Coca-Cola Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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