Garcia v. Kashi Co.
Katrina GARCIA, Laura Eggnatz, and Julie Martin, individually, and on behalf of all others similarly situated v. KASHI COMPANY, a California Corporation, and The Kellogg Company, a Michigan Corporation
Attorneys
Benjamin M. Lopatin, Law Offices of Howard W. Rubinstein, P.A., San Francisco, CA, Gillian L. Wade, Sara D. Avila, Milstein Adelman & Kreger LLP, Santa Monica, CA, Howard Weil Rubinstein, The Law Offices of Howard W. Rubinstein, P.A., West Palm Beach, FL, L. Dewayne Layfield, Law Office of L. Dewayne Lay-field, Beaumont, TX, Robert A. Chaffin, The Chaffin Law Firm, Houston, TX, Angela Valentina Arango-Chaffin, Chaffin Law Firm, Miami, FL, for Plaintiffs., Dean N. Panos, Richard P. Steinken, Jenner & Block, Chicago, IL, Edward M. Waller, Jr., Fowler White Boggs P.A., Tampa, FL, Kenneth K. Lee, Jenner & Block, LLP, Los Angeles, CA, for Defendants.
Full Opinion (html_with_citations)
OMNIBUS ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTSâ MOTION TO DISMISS PLAINTIFFSâ SECOND AMENDED COMPLAINT (D.E. 74); GRANTING IN PART AND DENYING IN PART DEFENDANTSâ MOTION REQUESTING JUDICIAL NOTICE IN SUPPORT OF THEIR MOTION TO DISMISS (D.E. 72); GRANTING AGREED MOTION TO FILE DOCUMENTS UNDER SEAL (D.E. 73); GRANTING PLAINTIFFSâ UNOPPOSED MOTION TO REQUEST JUDICIAL NOTICE IN SUPPORT OF THEIR RESPONSE IN OPPOSITION TO DEFENDANTSâ MOTION TO DISMISS (D.E. 81); AND GRANTING AGREED MOTION TO FILE DOCUMENTS UNDER SEAL (D.E. 88)
THIS CAUSE is before the Court on Defendants Kashi Company and The Kellogg Companyâs Motion to Dismiss Plaintiffsâ Second Amended Complaint (âMotion,â D.E. 74), filed December 4, 2013. Plaintiffs Katrina Garcia, Laura Eggnatz and Julie Martin (âPlaintiffsâ) filed a Response on December 23, 2013 (âResponse,â D.E. 80), to which Defendants filed a Reply on January 9, 2014 (âReply,â D.E. 89).
Also before the Court is Defendantsâ Motion Requesting Judicial Notice in Support of their Motion to Dismiss (D.E. 72), filed December 2, 2013, Plaintiffsâ Response in Opposition to the Motion for Judicial Notice (D.E. 82), filed December 23, 2013, and Defendantsâ Reply thereto (D.E. 83), filed January 2, 2014.
Also before the Court are an Agreed Motion to File Documents Under Seal (D.E. 73), filed December 4, 2013; Plaintiffs Unopposed Motion to Request Judicial Notice in Support of their Response in Opposition to Defendantsâ Motion to Dismiss (D.E. 81), filed December 23, 2013; and an Agreed Motion to File Documents Under Seal (D.E. 88), filed January 10, 2014.
The agreed and unopposed motions (D.E. 73, 81, and 88) are hereby GRANTED; the Court will address the contested motions separately. And, upon review of the Motions, Responses, Replies, and the record, the Court finds as follows.
I. Relevant Facts
Defendants manufacture, market, advertise, distribute, and sell various breakfast cereals, cereal bars, energy bars, and other foodstuffs. (SAC, D.E. 58 ¶ 1.) At issue in this case are Defendantsâ Kashi brand cereal products, snack bars, cookies, crack
On May 3, 2012, Plaintiffs Eggnatz and Garcia filed a Complaint in the Southern District of Florida. (See D.E. 1.) On September 14, 2012, Plaintiff Martin filed a Class Action Complaint in the Northern District of California. (See Martin v. The Kellog Company, et al., No. CV 12-04846 CRB (N.D.Cal. Sept. 14, 2012), Compl. (D.E. 1).) On December 7, 2012, The Honorable Charles R. Breyer, United States District Judge for the Northern District of California, ordered Plaintiff Martinâs ease to be transferred to the Southern District of Florida. (Id. at D.E. 20.) On January 11, 2013, this Court entered an Order consolidating the two cases, and further ordered Plaintiffs to file an amended consolidated complaint. (D.E. 30.) On October 18, 2013, Plaintiffs filed their Amended Consolidated Class Action Complaint (âSAC,â D.E. 58), which is the operative pleading for the instant Motion to Dismiss.
The SAC lists the Florida causes of action as (1) violations of Floridaâs Deceptive and Unfair Trade Practices Act, Fla. Stat. § 501.201 et seq. (id. ¶¶ 72-87); (2) Negligent Misrepresentation (id. ¶¶ 88-95); (3) Breach of Implied Warranty of Fitness for Purpose (id. ¶¶ 96-103); (4) Breach of Express Warranty (id. ¶¶ 104-111); (5) Declaratory Judgment (id. ¶¶ 112-117); (6) Money Had and Received (id. ¶¶ 118-130); and lists the California causes of action as violations of (7) Californiaâs Business and Professions Code § 17500 et seq. (id. ¶¶ 131-141); (8) California Civil Code § 1750 et seq. (id. ¶¶ 142-151); (9) the âunfairâ and âfraudulentâ prongs of California Business and Professions Code § 17200 et seq. (id. ¶¶ 152-164); and (10) the âunlawfulâ prong of California Business and Professions Code § 17200 et seq. (id. ¶¶ 165-174). Plaintiffs seek declaratory and injunctive relief in addition to monetary damages and attorneysâ fees and costs. (Id. at 44-45.)
II. Motion for Judicial Notice
Because the Court may rely upon some of the documents contained within Defendantsâ Motion Requesting Judicial Notice (D.E. 72), the Court will address that Motion first. Pursuant to Federal Rule of Evidence 201, a âcourt may judicially notice a fact that is not subject to reasonable dispute because it: (1) is generally known within the trial courtâs territorial jurisdiction; or (2) can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.â Fed. R.Evid. 201(b). âThe contents of the Fed
Defendants ask the Court to take judicial notice of the following:
1. A statement of policy by the Food and Drug Administration (âFDAâ), printed in the Federal Register and dated January 6, 1993 (D.E. 72-1);
2. A statement of policy by the FDA, printed in the Federal Register and dated November 27, 1991 (D.E. 72-2);
3. A statement of policy by the FDA titled âStatement of Policy: Foods Derived From New Plant Varieties,â printed in the Federal Register and dated May 29,1992 (D.E. 72-3);
4. A request for information regarding a statement of policy by the FDA titled âFood Labeling; Foods Derived From New Plant Varieties,â printed in the Federal Register and dated April 28, 1993 (D.E. 72-4);
5. The FDAâs âGuidance for Industry Voluntary Labeling Indicating Whether Foods Have or Have Not Been Developed Using Bioengineering, Draft Guidance,â released for comment in January 2001 (D.E. 72-5);
6. The FDAâs âGuidance on Consultation Procedures, Foods Derived From New Plant Varieties,â dated October 1997 (D.E. 72-6);
7. A âtranscript of testimonyâ presented by the FDA before the House Subcommittee on Basic Research, dated October 19, 1999 (D.E. 72-7); and
8. A letter from the United States Department of Agriculture (âUSDAâ) to a supplier of hexane-processed soy dated August 23, 2006 (D.E. 73-1).
(See Motion Requesting Judicial Notice, D.E. 72 at 1-2.)
Plaintiffs argue that the Court should deny the Motion in toto, because (1) âthe âfactsâ that Defendants request to take judicial notice of are subject to reasonable dispute;â and (2) âbecause, to the extent the Exhibits shed any light at all on the issues at hand, they contradict Defendantsâ arguments in their Motion.â (Response to Defendantâs Motion .Requesting Judicial Notice, D.E. 82 at 2.) They argue that the purported fact that Defendants are attempting to establishâi.e., âthat it would be âobjectively unreasonableâ for a consumer to believe that an âall naturalâ label on a food package could indicate that the food within did not contain GMOs and/or the other synthetic ingredients,â (id. at 4)âis not appropriate for judicial notice because it cannot be âaccurately and readily determinedâ from the documents. (Id. (quoting Fed.R.Evid. 201(b).)) Finally, with respect to Exhibit 8, they argue that âthe 2006 letter to Defendantsâ hexane-processed soy supplier lacks foundation, is presented out of context and its accuracy is highly disputed by Plaintiffs.â (Id.)
In reply, Defendant asserts that the âfactâ of which it seeks judicial notice is âthat the FDA and the USDA have made certain statements regarding natural food products and bioengineered ingredients, which are relevant to the determination of whether Plaintiffs have stated a claim upon which relief can be granted.â (Reply in Support of Motion Requesting Judicial Notice, D.E. 83 at 1-2.)
The Court takes judicial notice of Exhibits 1 through 4âthe Federal Register exhibits-pursuant to 44 U.S.C. section 1507. See Randolph v. J.M. Smucker Co., No. 13-80581-CIV, 2014 WL 1018007, at *1-2 (S.D.Fla. Mar. 14, 2014) (taking judicial
However, the Court denies the request to take judicial notice of Exhibits 7 and 8. First, with respect to Exhibit 7, âalthough described by Defendant as a âtranscriptâ, these items are copies of statements purportedly given before Congress,â and âare not adjudicative facts.â Id. (denying motion to take judicial notice of Exhibit 7 above).
Second, with respect to Exhibit 8, the letter Defendants seek to introduce is from the USDA to one of Defendantsâ primary suppliers of hexane-processed soy products. (See Letter, D.E. 73-1.) In that letter, the USDA informs the supplier that certain soy protein isolates and soy protein concentrates manufactured with hexane are acceptable as ingredients in meat and poultry products labeled as ânatural.â (Id.) The letter is marked âCONFIDENTIAL PURSUANT TO PROTECTIVE ORDER, ATTORNEYâS EYES ONLY.â (Id.) The Court finds that this letter does not evince an âadjudicative factâ of which the Court can take judicial notice. See Astiana v. Kashi Co., 295 F.R.D. 490, 493 (S.D.Cal.2013) (âKashi is mistaken in asserting that the USDA letter settles the issue of whether hexane-processed soy ingredients are natural as a matter of federal law.â).
III. Motion to Dismiss
Under Federal Rule of Civil Procedure 12(b)(6), a court may dismiss a claim for âfailure to state a claim upon which relief can be granted.â In reviewing a motion to dismiss, the Court must accept the factual allegations as true and construe them broadly in the light most favorable to the plaintiff. See Watts v. Fla. Intâl Univ., 495 F.3d 1289, 1295 (11th Cir.2007). âTo survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to âstate a claim to relief that is plausible on its face.â â Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). Con-elusory statements, assertions or labels will not survive a 12(b)(6) motion to dismiss. Id. âA claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.â Id.; see also Edwards v. Prime, Inc., 602 F.3d 1276, 1291 (11th Cir.2010) (setting forth the plausibility standard). In recent decisions, the Eleventh Circuit further advised that courts may make reasonable inferences in a plaintiffs favor, but they are not required-to draw plaintiffs inference. Sinal-trainal v. Coca-Cola, 578 F.3d 1252, 1260 (11th Cir.2009).
Defendants begin by asserting broader arguments for dismissal before challenging the individual claims. The Court will discuss the arguments in the order they were presented by Defendantsâ Motion.
A. Whether Plaintiffsâ claims are preempted.
Each count in the SAC alleges that Defendants violated some law by representing their products as âall naturalâ and containing ânothing artificial,â when in fact the products contain GMOs and other allegedly synthetic ingredients. Defendantsâ Motion argues that Plaintiffs are seeking âto impose new and different labeling standards for products that may have bioengi-neered ingredientsâ (Motion at 6), which would conflict with federal policyâspecifically, the Food and Drug Administrationâs (FDA) regulation of natural and bioengi-neered foods under the Federal Food, Drug, and Cosmetic Act (FDCA), as amended by the Nutrition Labeling and Education Act (NLEA), 21 U.S.C. section 341 et seq. Thus, Defendants argue that Plaintiffsâ claims are preempted by federal law and/or policy. (See Motion at 6.) They offer four separate arguments in support: first, they argue that Plaintiffsâ GMO-based claims are preempted by FDA policy and regulations (id.); second, they argue that Plaintiffsâ GMO-based claims conflict with FDA regulations governing the identification of common ingredients (id. at 7); third, they appear to argue that two eases from other districts support the conclusion that Plaintiffsâ challenge to the âall naturalâ representation on the product packaging is preempted (id. at 8-10); and fourth, they argue that Plaintiffsâ âclaims against vitamins and hexane-processed soy are preemptedâ because âthe FDA permits ânaturalâ foods to contain synthetic ingredi
âWhether federal statutes or regulations preempt state law is âa question of congressional intent.â â Irving v. Mazda Motor Corp., 136 F.3d 764, 767 (11th Cir.1998) (quoting Perry v. Mercedes Benz of N. Am., Inc., 957 F.2d 1257, 1261 (5th Cir.1992)). âCongressâthrough federal laws and regulationsâmay effectively preempt state law in three ways: (1) express preemption; (2) field preemption (regulating the field so extensively that Congress clearly intends the subject area to be controlled only by federal law); and (3) implied (or conflict) preemption.â Id. Here, Defendants appear to argue Plaintiffs claims are expressly preempted and impliedly preempted. (See Motion at 6 (âPlaintiffsâ GMO-based claims conflict with FDA Policy on GMOs.â).)
1. FDA policy on GMO-based claims
Defendants argue that â[f]or two decades, the FDA has consistently rejected any requirement that bioengineered foods must be labeled differently because the FDA has determined that there is no material difference from non-bioengineered foods that would require such disclosure.â (Motion at 6.) However, this argument is based on a misreading of the SAC: the SAC does not allege that Defendants are required to disclose the presence of GMOs on the packaging of their products, as Defendants assert; rather, the SAC merely alleges that the âall naturalâ representation currently on the packaging would, and does, mislead reasonable consumers. (Response at 6-7 (citing SAC ¶¶ 7-9, 36-39, 46-53).) Accordingly, to the extent Defendants argument is based on the mistaken premise that the SAC seeks to impose a disclosure requirement on Defendants GMO products, it is rejected. The Court turns to whether Plaintiffsâ claims are otherwise preempted.
a. Express Preemption
ââ[A] strong presumption exists against finding express preemption when the subject matter ... is one that has traditionally been regarded as properly within the scope of the statesâ rights.â â Irving, 136 F.3d at 767 (quoting Taylor v. Gen. Motors Corp., 875 F.2d 816, 823 (11th Cir.1989)). â âIf there be any subject over which it would seem the states ought to have plenary control ... it is the protection of the people against fraud and deception in the sale of food products.â â Holk v. Snapple Beverage Corp., 575 F.3d 329, 334-35 (3d Cir.2009) (quoting Plumley v. Massachusetts, 155 U.S. 461, 472, 15 S.Ct. 154, 39 L.Ed. 223 (1894)). Thus, the NLEAâs express preemption provision must be construed narrowly. See Irving, 136 F.3d at 767 (citing Taylor, 875 F.2d at 823-24)..
The NLEAâs express preemption provision provides, in relevant part: â[N]o State ... may directly or indirectly establish ... any requirement for the labeling of food of the type required by section 343(k) of this title that is not identical to the requirement of such section[.]â 21 U.S.C. § 343â1(a)(3). Section 343(k), in turn, provides that food is misbranded â[i]f it bears or contains any artificial flavoring, artificial coloring, or chemical preservative[.]â This provision does not apply to the SAC, because Plaintiffs do not allege that Kashiâs products contain artificial flavoring, coloring, or chemical preservatives, but rather that the GMOs and other allegedly synthetic ingredients precludes the
b. Implied (Conflict) Preemption
Alternatively, Defendants appear to argue that Plaintiffsâ claims are impliedly preempted because a court order requiring Defendants to remove the âall naturalâ language from their product packaging would ârequire this Court to legislate state law requirements for bioengineered foods that conflict with federal policy.â (Motion at 6.) This argument fails because the FDA does not have a policy permitting food containing GMOs to be described as ânatural,â nor has it regulated the term âall natural.â Implied preemption occurs âwhere it is impossible for a private party to comply with both state and federal requirements, see, e.g., Florida Lime & Avocado Growers, Inc. v. Paul, 373 U.S. 132, 142-43, 83 S.Ct. 1210, 10 L.Ed.2d 248 (1963), or where state law âstands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.â â English v. Gen. Elec. Co., 496 U.S. 72, 79, 110 S.Ct. 2270, 110 L.Ed.2d 65 (1990) (quoting Hines v. Davidowitz, 312 U.S. 52, 67, 61 S.Ct. 399, 85 L.Ed. 581 (1941)).
Defendants rely on the informal policy espoused by the FDA in 1991, which provides: â[T]he agency has considered ânaturalâ to mean that nothing artificial or synthetic (including colors regardless of source) is included in, or has been added to, the product that would not normally be expected to be there.â Food Labeling: Nutrient Content Claims, General Principles, Petitions, Definition of Terms, 56 Fed.Reg. 60421, 60466 (Nov. 27, 1991). Defendants also cite a 1993 statement from the FDA in which it specifically declined to establish a definition for ânatural,â and maintained the informal position it espoused in 1991. Food Labeling: Nutrient Content Claims, General Principles, Petitions, Definition of Terms; Definitions of Nutrient Content Claims for the Fat, Fatty Acid, and Cholesterol Content of Food, 58 Fed.Reg. 2302, 2407 (Jan. 6, 1993).
Thus, with respect to Plaintiffsâ âall naturalâ claims, âthe FDA has deferred taking regulatory action. Plaintiffs All Natural Claims do not stand as an obstacle to accomplishing Congressâs objectives of uniformity and consistency in regulating ... labeling because there are no federal requirements regarding the term ânaturalâ to be given preemptive effect.â Hitt, 2009 WL 449190, *5. Nor has Defendant established that Plaintiffsâ claims, if successful, make compliance with federal law an impossibility. See Lockwood, 597 F.Supp.2d at 1034.
Furthermore, in Holk v. Snapple Beverage Corp., the Third Circuit Court of Appeals held that this informal FDA policy upon which Defendants rely for preemp
In sum, the Court concludes that Plaintiffsâ GMO-based claims are neither expressly nor impliedly preempted by FDA policy or regulations.
2. FDA regulations governing the identification of common ingredients
Next, Defendants argue that Plaintiffsâ GMO-based claims are preempted âbecause the FDA has implemented comprehensive labeling regulations for food ingredients that directly undercut Plaintiffsâ claim that Kashi must identify its ingredients as bioengineered.â (Motion at 7.) Once again, Defendantsâ argument is premised on a misreading of the SAC. Plaintiffs do not, as Defendants argue, âsuggest that Kashi should have identified ingredients as bioengineered.â (Id.) Rather, the SAC alleges that the âall naturalâ representation currently on the packaging would, and does, mislead reasonable consumers. (Response at 6-7 (citing SAC ¶¶ 7-9, 36-39, 46-53).) Accordingly, Defendantsâ argument with respect to FDA regulations governing identification of common ingredients is misplaced and therefore rejected.
3. Plaintiffsâ âend-runâ around the NLEA and FDA
Next, Defendants argue that Plaintiffs are attempting an âend-run around the NLEA and FDA regulations ... by claim
First, Defendants rely on In re: Pepsi-Co, Inc., Bottled Water Marketing & Sales Practices Litigation, 588 F.Supp.2d 527 (S.D.N.Y.2008). In that case, the plaintiffs sued the makers of Aquafina water for, inter alia, unfair and deceptive trade practices. Id. at 529. They alleged that the defendant deceptively placed an image of a mountain on bottled water to mislead consumers as to the source of the water, which was actually just purified âtap water.â Id. The parties agreed âthat although bottled water originating from a community water system generally must be labeled âfrom a community water systemâ or âfrom a municipal source,â the applicable standard of identity explicitly exempts from this source disclosure requirement water meeting the definition of purified drinking water.â Id. at 534 (citing 21 ' C.F.R. § 165.110(a)(3)(ii)).
Plaintiffsâ claims are expressly preempted ... because: (1) federal law is. not silent on the subject of implied labeling misrepresentations regarding the municipal source of bottled water; and (2) given that the Aquafina label fits within the exception for purified water and thus complies with the FDCAâs requirements, Plaintiffs state law claims by necessity are premised on requirements that are not parallel to those imposed by federal law.
Id. Thus, finding that the plaintiffsâ cause of action would impose a labeling requirement explicitly rejected by the FDA, and affirmatively different from the federal requirements, the court found the claims preempted. Id.
In contrast, here, â[u]nlike the federal standard governing bottled water considered in Pepsico, ... defendants do not have the benefit of an express preemption provision or interpretive guidance by the FDA as to the scope of the regulationâs preemptive effect.â Chavez v. Blue Sky Natural Beverage Co., 268 F.R.D. 365, 372 (N.D.Cal.2010) (finding no preemption in consumer class action alleging beverage company misrepresented origin of beverage). Here, no âaffirmatively differentâ regulation applies to Plaintiffsâ claims; Pepsico is inapposite.
Second, Defendants rely on Hairston v. South Beach Beverage Co., Inc., No. CV 12-1429-JFW (DTBx), 2012 WL 1893818 (N.D.Cal. May 18, 2012). In Hairston, the Plaintiff sued beverage-makers alleging:
Plaintiff cannot avoid preemption of these claims by arguing that his claim relates solely to Defendantsâ âall naturalâ representations and that he included his fruit name and vitamin name claims only as support for his âall naturalâ claim. Plaintiffs argument would effectively allow Plaintiff to avoid preemption of those claims, and would undermine the purpose of the federal labeling standards which includes avoiding a patchwork of different state standards.
Id. Thus, âHairston did not address whether âall naturalâ claims, on their own, are preempted,â Larsen v. Trader Joeâs Co., 917 F.Supp.2d 1019, 1024 (N.D.Cal. 2013) (finding âall naturalâ claims were not preempted by FDCA or FDA regulations). âąRather, âHairston stands for the limited and unremarkable proposition that a plaintiff cannot avoid,preemption of one claim by asserting that it supports another claim.... The pertinent inquiry is whether Plaintiffs ... claim, standing on its own, is preempted.â Pardini v. Unilever United States, Inc., 961 F.Supp.2d 1048, 1058 (N.D.Cal.2013). For the reasons discussed in Section 111(A)(1) and (2), supra, and Section 111(A)(4), infra, Plaintiffsâ standalone challenge to Defendantsâ âall naturalâ labeling are not preempted. Accordingly, Hairston is of no help to Defendants.
In sum, the Court rejects Defendantsâ argument that Plaintiffs cannot challenge the âall naturalâ characterization of its products. At this motion to dismiss stage, the Court accepts Plaintiffsâ well-pleaded allegations that the âall naturalâ labeling on Defendantsâ products is misleading.
4. Plaintiffsâ challenge to vitamins and hexane-processed soy
Next, Defendants argue that the FDA permits ânaturalâ foods to contain synthetic ingredients and processing aids as long as they are normally expected in the food. (Motion at 10 (citing 58 Fed. Reg. at 2407).) In response, Plaintiffs assert: âNot only is this interpretation of FDA policy incorrect, but even if it were correct it would not apply here. Taking Plaintiffsâ allegations in their SAC as true ... it is indisputable [that] reasonable consumers do not expect fake vitamins and processing aids to be in foods labeled âAll Naturalâ and/or âcontaining nothing artificial.â â (Response at 13 (citing SAC ¶¶ 36-45).)
36. Defendants label, market, and/or advertise the Products as âALL NATURAL.â Defendantsâ claim is misleading, however, because Defendantsâ Products contain GMOs, ingredients that have been modified through biotechnology and are therefore not all natural.
37. GMOs are not expected to be in foods labeled âAll Natural.â Recently, Americans have expressed a heightened concern about the safety of GMO Products, as evinced by the fact that legislation requiring labeling GMOs have been proposed in more than a dozen states since 2011.8 In addition, polls taken by the Pew Center, Consumers Union, Harris Interactive and ABC over the last decade that have consistently found that the vast majority of Americans would like to see genetically modified foods better regulated and labeled.9
40.Furthermore, the FDA has loosely defined the term ânaturalâ as a product that contains no synthetic or artificial ingredients.10 According to federal regulations, an ingredient is synthetic if it is:
[a] substance that is formulated or manufactured by a chemical process or by a process that chemically changes a substance extracted from naturally occurring plant, animal, or mineral sources, except that such term shall not apply to substances created by naturally occurring biological processes.â 7 C.F.R. § 205.2.
41. Similarly, the USDAâs Food Safety and Inspection Service (âFSISâ) defines a ânaturalâ product as a product that does not contain any artificial or synthetic ingredient and does not contain any ingredient that is more than âminimally processed,â defined as:
(a) those traditional processes used to make food edible or to preserve it or to make it safe for human consumption, e.g., smoking, roasting, freezing, drying, and fermenting, or (b) those physical processes which do not fundamentally alter the raw product and/or which only separate a whole, intact food into component parts, e.g., grinding meat, separating eggs into albumen and yolk, and pressing fruits to produce juices. Relatively severe processes, e.g., solvent extraction, acid hydrolysis, and chemical bleaching would clearly be considered more than minimal processing....
USDA FSIS, Food Standards and Labeling Policy Book, available at www. fsis.usda.gov/OPPDE/larc/Policies/ LabelingâPolicyâBookâ082005.pdf31.
42. The Kashi companies have since embraced these federal explanations and posted the following definition of ânaturalâ on its website: At Kashi, we define natural as:
Natural Food is made without artificial ingredients, colors or preservatives and is minimally processed. A*1378 natural ingredient is one that is made from a renewable source found in nature. Minimal Processing involves only kitchen chemistry processes that can be done in a family kitchen and does not negatively impact the purity of the natural ingredients.11
43.The scientific description of how GMOs are produced refutes any attempt to categorize them as âminimally processed,â âall-naturalâ or substantially similar to something naturally occurring. Contemporary research on GMOs has made clear that genetic engineering is completely different from natural breeding and entails different risks because the genetic engineering and associated tissue culture processes are imprecise and highly mutagenic, leading to unpredictable changes in the DNA, proteins, and biochemical composition of the resulting GMO that can lead to unexpected toxic or allergenic effects and nutritional disturbances:
[T]he process of inserting a genetically modified gene into the DNA of a plant cell is crude, uncontrolled, and imprecise, and causes mutations'âheritable changesâin the plantâs DNA blueprint. These mutations can alter the functioning of the natural genes of the plant in unpredictable and potentially harmful ways.
Because of these diverse interactions, and because even the simplest organism is extremely complex, it is impossible to predict the impacts of even a single GM gene on the organism. It is even more impossible to predict the impact of the GMO on its environmentâthe complexity of living sys-terns is too great. In short, unintended, uncontrolled mutations occur during the GM process and complex interactions occur at multiple levels within the organism as a result of the insertion of even a single new gene. For these reasons, a seemingly simple genetic modification can give rise to many unexpected changes in the resulting crop and the foods produced from it. The unintended changes could include alterations in the nutritional content of the food, toxic and allergenic effects, poor crop performance, and generation of characteristics that harm the environment.12
44. At a minimum a reasonable consumer would expect a companyâs representation of âall-naturalâ to conform to the companyâs own published definition, as well as the federal regulation. However, the process of manufacturing a GMO is clearly beyond âminimal processing;â one would certainly not expect a consumer to bioengineer an ingredient in their kitchen.
45. Despite this, Defendants have falsely represented their Products are all natural even though. they contain GMOs, namely Corn, Soy, Corn variations, and/or Soy variations. Corn, Soy, Corn variations, and/or Soy variations, among other ingredients, are known to be derived from GMOs and serve as part of the main ingredients in the Products. However, Defendantsâ Products contain no warning or disclaimer that the Products contain GMOs in its advertising for the Products (not related to the label).
(SAC ¶¶ 36-45.) The Court must take all of these well-pleaded allegations as true
Accordingly, the Court rejects Defendantâs argument that Plaintiffsâ claims regarding vitamins and hexane-processed soy are preempted.
B. Whether Plaintiffsâ Claims are Subject to Dismissal Under the Primary Jurisdiction Doctrine.
Defendants argue that even if Plaintiffsâ claims are not preempted, the Court should dismiss the SAC based on the âprimary jurisdiction doctrine.â (Motion at 11.) Specifically, they argue that âthe FDA should decide a product labeling issue because it has the requisite expertise and can ensure uniformity in labeling.â (Id. at 12.)
Primary jurisdiction âis a doctrine specifically applicable to claims properly cognizable in court that contain some issue within the special competence of an administrative agency.â Reiter v. Cooper, 507 U.S. 258, 268, 113 S.Ct. 1213, 122 L.Ed.2d 604 (1993); see also United States v. W. Pac. R.R., 352 U.S. 59, 64, 77 S.Ct. 161, 1 L.Ed.2d 126 (1956) (stating same); Clark v. Time Warner Cable, 523 F.3d 1110, 1114 (9th Cir.2008) (stating that âthe doctrine is a âprudentialâ one, under which a court determines that an otherwise cognizable claim implicates technical and policy questions that should be addressed in the first instance by the agency with regulatory authority over the relevant industry, rather than the judicial branchâ). âIt requires the court to enable a âreferralâ to the agency, staying further proceedings so as to give the parties reasonable opportunity to seek an administrative ruling.â Reiter, 507 U.S. at 268, 113 S.Ct. 1213. âReferral of the issue to the administrative agency does not deprive the court of jurisdiction; it has discretion either to retain jurisdiction or, if the parties would not be unfairly disadvantaged, to dismiss the case without prejudice.â Id. at 268-69, 113 S.Ct. 1213; see also Hansen v. Norfolk & W. Ry., 689 F.2d 707, 714 (7th Cir.1982) (stating that â[djismissal of the complaint may be appropriate when all of the relief that is sought in court can be obtained in an administrative forum or in an easily initiated suit subsequent to the administrative proceedings;â however, â[a] stay of the court action pending administrative determinations ... is in order when there is reason to believe that a party may be prejudiced by a dismissalâ (citing Far E. Conference v. United States, 342 U.S. 570, 576-77, 72 S.Ct. 492, 96 L.Ed. 576 (1952); United States v. Mich. Natâl Corp., 419 U.S. 1, 5, 95 S.Ct. 10, 42 L.Ed.2d 1 (1974))).
â â[T]he main justifications for the rule of primary jurisdiction are the expertise of the agency deferred to and the need for a uniform interpretation of a statute or regulation.â â Boyes v. Shell Oil Prods. Co., 199 F.3d 1260, 1265 (11th
Here, Defendant argues that all four factors support invoking the primary jurisdiction doctrine in this case. (Motion at 12.)
First, the issues of ânaturalâ labeling and GMO ingredients are within the FDAâs jurisdiction. Second, Congress specifically charged the FDA to âprotect the public health by ensuring thatâ foods are ... properly labeled.â 21 U.S.C. § 393(b)(2)(A). The FDA has used this authority to promulgate a comprehensive regulatory scheme governing food misbranding. See, e.g., 21 C.F.R. §§ 101.1-101.18, 101.22, 101.30. Third, the FDA has implemented numerous policies and guidance documents governing the use and labeling of natural and bioengineered foods.... For example, the FDA has appointed a Biotechnology Evaluation Team that is responsible for evaluating the regulatory compliance of bioengineered foods. Fourth, deferring to the FDA would promote uniformity of laws and avoid a patchwork quilt of varying decisions.
(Id.)
Once again, Defendantsâ argument misses the mark. Plaintiffsâ claims rest on the determination of whether Defendantsâ âall naturalâ and ânothing artificialâ representations on their productsâ labeling are misleading and whether customers purchased Defendantsâ products in reliance upon these representations. â â[T]his is not a technical area in which the FDA has greater technical expertise than the courtsâ[as] every day courts decide whether conduct is misleading.â â Rikos v. Procter & Gamble Co., 782 F.Supp.2d 522, 530 (S.D.Ohio 2011) (declining to apply the primary jurisdiction doctrine where the plaintiffs claims rested on a determination of whether a companyâs advertisements of a food supplement âare likely to deceive a reasonable consumerâ under Californiaâs consumer fraud statutes) (quoting Lockwood, 597 F.Supp.2d at 1035 (declining to apply the primary jurisdiction doctrine in false advertising case concerning definition and deceptive use of the term ânaturalâ)) (citing Chacanaca v. Quaker Oats Co., 752 F.Supp.2d 1111, 1124 (N.D.Cal.2010) (stating that the plaintiffs advanced a ârelatively straightforward claim: they assert that defendant has violated FDA regulations and marketed a product that could mislead a reasonable consumer,â which âis a question courts are well-equipped to handleâ)); see also In re Horizon Organic Milk Plus
Nor has the FDA promulgated a comprehensive regulatory scheme regarding assertions of âall naturalâ or ânothing artificialâ on food labeling. See Lockwood, 597 F.Supp.2d at 1035; see also In re Frito-Lay, 2013 WL 4647512, at *7. â[V]arious parties have repeatedly asked the FDA to adopt formal rulemaking to define the word natural and the FDA has declined to do so because it is not a priority and the FDA has limited resources.â Id. Courts have further noted that â[although the FDA has addressed the use of the term ânaturalâ in depicting food and beverage products, its policy with respect to the use of the term ânaturalâ is unrestrictive. The FDA follows a policy of not taking enforcement action charging that a product labeled as ânaturalâ is misbranded, as long as the product has no âadded color, synthetic substances, and flavors.â â Wright v. Gen. Mills, Inc., Civil No. 08cv1532L(NLS), 2009 WL 3247148, at *3 (S.D.Cal. Sept. 30, 2009) (quoting 58 Fed.Reg. 2407). âBased on the FDAâs consistent determination that the term ânaturalâ does not need specific definition, state law claims based upon the use of the term ânaturalâ is not an issue of first impression, does not require technical expertise within the special competence of the FDA, and is not a particularly complicated issue outside the ability of the Court to consider and decide.â Id.
In sum, â â[tjhis case is far less about science than it is about whether a label is misleading,â and the reasonable-consumer inquiry upon which some of the claims in this case depends is one to which courts are eminently well suited, even well versed.â â In re Frito-Lay, 2013 WL 4647512, at *8. Accordingly, the Court denies Defendantsâ motion to dismiss pursuant to the primary jurisdiction doctrine. See id.; see also Krzykwa v. Campbell Soup Co., 946 F.Supp.2d 1370, 1375 (S.D.Fla.2013) (declining to dismiss under primary jurisdiction doctrine where plaintiffs alleged that defendantâs use of GMOs in their âall naturalâ products misled consumers); Janney v. Mills, 944 F. Supp 2d 806, 811-815 (N.D.Cal.2013) (declining to dismiss under the primary jurisdiction doctrine where plaintiffs alleged that foods containing high fructose corn syrup were not âall naturalâ and providing a detailed analysis of the FDAâs position on ânaturalâ food labelingâ); Jones v. ConAgra Foods, Inc., 912 F.Supp.2d 889, 898-99 (N.D.Cal. 2012) (â100% Naturalâ); Briseno v. ConAgra Foods, Inc., Case No. CV 11-05379 MMM (AGRx), 2011 U.S. Dist. LEXIS 154750, at *28-29 (C.D.Cal. Nov. 23, 2011) (same).
C. Whether Plaintiffsâ Claims Fail to Provide Particularized Facts Sufficient to Meet the Iqbal Plausibility Standard.
Next, Defendants assert that Plaintiffs have failed to allege sufficient factual content to show that it is more than âconceivableâ that Defendantsâ products actually contain bioengineered or artificial ingredients. (Motion at 13 (citing Ashcroft v. Iqbal, 556 U.S. 662, 683, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)).) They argue that Plaintiffs âfail to provide a single factual allegation that [Defendantsâ] products ... actually contain such ingredients,â and that although Kashi has âpublicly stated that it is possible that some of its products may contain GMO ingredients due to commingling of ingredients in storage and shipment, it has never stated that its products actually contain GMOs....â (Id.) Plaintiffs respond by arguing that they
Under Federal Rule of Civil Procedure 8(a)(2), a pleading must contain a âshort and plain statement of the claim showing that the pleader is entitled to relief.â This pleading standard does not require âdetailed factual allegations,â but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation. Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). âTo survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to âstate a claim to relief that is plausible on its face.â â Id. (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955). âA claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.â Id.
Under Rule 9, a party alleging fraud or mistake âmust state with particularity the circumstances constituting fraud or mistake. Malice, intent, knowledge, and other conditions of a personâs mind may be alleged generally.â The particularity requirement of Rule 9(b) is satisfied if the complaint alleges âfacts as to time, place, and substance of the defendantâs alleged fraud, specifically the details of the defendantsâ allegedly fraudulent acts, when they occurred, and who engaged in them.â Hopper v. Solvay Pharm., Inc., 588 F.3d 1318, 1324 (11th Cir.2009) (citation and internal quotation marks omitted); see also Ziemba v. Cascade Int'l Inc., 256 F.3d 1194, 1202 (11th Cir.2001) (noting the pleading standards are satisfied ifâ alleging precisely what statements were made in what documents, when, where and by whom, the content, the manner in which they misled the plaintiff, and what the defendants obtained as a consequence of the fraud).
Plaintiffs have sufficiently pled their claims. The SAC alleges (1) which Plaintiffs purchased (2) which specific food items that were manufactured, marketed, advertised, distributed, and sold by Defendants, (3) where the Plaintiffs purchased them and (4) when. For example, Paragraph 21 provides:
Plaintiff Garcia has purchased Go Lean CrunchÂź, and the snack bars Ka-shi Go LeanÂź Crunchy! All Natural Protein and Fiber Bars (chocolate peanut butter), and Kashi Go LeanÂź Roll! All Natural Protein and Fiber Bars (chocolate peanut butter) during the Class period, from a Publix Supermarket located at 2270 SW 27th Avenue, Miami, Florida 33145 as well as the Whole Foods located at 10th and Alton in Miami Beach, Florida, 33139.
(See also ¶¶ 22-23.) It further alleges that Plaintiffs were induced to buy the products by their âAll Naturalâ labeling, which they âinterpreted to mean that the Products do not contain any GMOs and/or artificial and synthetic ingredients.â (Id. ¶ 27.) âIf Plaintiffs had known the Products contained GMOs and/or other synthetic and artificial ingredients and thus were not all-natural, they would not have purchased them.â (Id. ¶24.) Thus, they allege the labeling is âdeceptive and misleading.â (Id. ¶ 26.)
The SAC further provides an extensive list of Defendantsâ products that are labeled as âAll Naturalâ (SAC 1133) and a separate list of the products that are labeled as âNothing Artificialâ (id. ¶ 34). Under each product, the SAC lists the âGMO Ingredientsâ and the âArtificial/Synthetic Ingredientsâ that each product allegedly contains. To take just two
i. GMO Ingredients: Soy Lecithin, Ex-peller Pressed Canola Oil, Yellow Corn Meal;
ii. Artificial/ Synthetic Ingredients: Hexene-Processed Soy
Paragraph 34(a) alleges that KashiÂź Heart to HeartÂź Honey Oat Waffles are labeled as âNothing Artificialâ but contain:
i. GMO Ingredients: Degerminated Yellow Corn Meal, Yellow Corn Flour, Expeller Pressed Canola Oil;
ii. Artificial/ Synthetic Ingredients: Hexene-Processed Soy Ingredients, Pyridoxine Hydrochloride, Alpha Tocopherol Acetate
The SAC does not allege that these products may contain these genetically-modified and synthetic ingredients, it alleges that they do contain them. (See id. ¶¶ 33-34.) The SAC further alleges that the labeling on Defendantsâ products would, and did, mislead a reasonable consumer. (See, e.g., id. ¶¶44, 82, 92.) Finally, the SAC alleges that Defendants charged an artificially high price for these products to encourage the perception that its Products âwere superior to other, comparable products because the Kashi Products were âall naturalâ whereas the others were not.â (Id. ¶ 30.) âPlaintiffs paid this price premium for the Products because they believed the Products were GMO-free and did not contain artificial and synthetic ingredients (in other words, they believed they are âAll Naturalâ and contained âNothing Artificialâ).â
To conceive how the SAC could possibly be pled with any more particularity strains the imagination. The Court therefore concludes that the SAC pleads sufficient factual content to allow âthe court to draw the reasonable inference that the defendant is liable for the misconduct alleged.â Iqbal, 556 U.S. at 663, 129 S.Ct. 1937. The Court further finds that the SAC alleges precisely what statements were made in what documents, when, where and by whom, the content, the manner in which they misled the plaintiff, and what the defendants obtained as a consequence of the fraud. See Ziemba, 256 F.3d at 1202. Accordingly, the SAC is sufficiently pled under Rules 8 and 9(b) of the Federal Rules of Civil Procedure. See In re ConAgra Foods Inc., 908 F.Supp.2d 1090, 1099-1101 (C.D.Cal.2012).
D. Whether the Individual Causes of Action State Claims
1. The FDUTPA, UCL, FAL, and CLRA claims (Claims I, VII, VIII, IX, and X)
Next, Defendants allege that Plaintiffsâ claims under Floridaâs Deceptive and Unfair Trade Practices Act (FDUTPA), Californiaâs Unfair Competition Law (UCL), Californiaâs False Advertising Law (FAL), and Californiaâs Consumers Legal Remedies Act (CLRA) must be dismissed because Plaintiffs fail to articulate why a reasonable consumer would be misled. (Motion at 14.) Plaintiff contends that Defendantsâ arguments are premature at the motion to dismiss stage where the pleadings control. (Response at 19 (citing Wright v. Emory, 41 So.3d 290, 292-93 (Fla.Dist.Ct.App.2010) (âWhether [Defendantsâ] representations constitute âdeceptive and unfairâ conduct is an issue of fact to be resolved by the judge at the conclusion of the trial.â)).)
ââA consumer claim for damages under FDUTPA has three elements: (1) a deceptive act or unfair practice; (2) causation; and (3) actual damages.â â City First Mortg. Corp. v. Barton, 988 So.2d 82, 86 (Fla.Dist.Ct.App.2008) (quoting Rollins,
Similarly, the UCL prohibits any âunlawful, unfair or fraudulent business act or practice.â Cal. Bus. & Prof.Code § 17200. The FAL prohibits any âunfair, deceptive, untrue, or misleading advertising.â Cal. Bus. & Prof.Code § 17500. The CLRA prohibits âunfair methods of competition and unfair or deceptive acts or practices.â Cal. Civ.Code § 1770. The claims under these California statutes are governed by the âreasonable consumerâ test. Williams v. Gerber Prods. Co., 552 F.3d 934, 938 (9th Cir.2008) (citations omitted). âUnder the reasonable consumer standard, [Plaintiffs] must show that members of the public are likely to be deceived.â Id. (citations and internal quotation marks omitted).
Defendants first argue that Plaintiffs have not shown how Defendants have violated the FDAâs policy, which permits foods to be labeled ânaturalâ when ânothing artificial or synthetic (including all col- or additives regardless of source) has been included in, or has been added to, a food that would not normally be expected in the food.â (Motion at 18 (citing 58 Fed.Reg. 2407 (Jan. 6,1993)).) In fact, they contend that reasonable consumers âwould expect and want vitamins and low-fat soybeans in their food.â (Id.) However, the SAC alleges that reasonable consumers do not expect that foods labeled âall naturalâ will contain synthetic and/or artificial ingredients. (SAC ¶¶ 27, 30, 40, 44.) âAt the motion to dismiss stage, all well-pleaded facts are accepted as true, and the reasonable inferences therefrom are construed in the light most favorable to the plaintiff.â Garfield v. NDC Health Corp., 466 F.3d 1255, 1261 (11th Cir.2006) (citation and internal quotation marks omitted). Thus, the Court rejects Defendantsâ claim that reasonable consumers would expect and want synthetic and/or artificial ingredients in food labeled âall natural.â
Second, Defendants argue that notwithstanding their compliance with the FDA policy, Plaintiffs âclaims fail because they have not offered a plausible definition of ânaturalâ for packaged foods that by definition undergo some processing and human intervention to be created.â (Id.) They cite Pelayo v. Nestle USA where the complaint alleged that the âAll Naturalâ labeling of pasta was misleading because the products contained unnatural, artificial, or synthetic ingredients. 989 F.Supp.2d 973, 975-76 (C.D.Cal.2013). The Court relied on a report by the Federal Trade Commission in which it purportedly âdeclined to adopt a definition of ânaturalâ because ânatural may be used in numerous contexts and may convey different meanings depending on that context.â â Id. at 979. The Court dismissed the Complaint because the plaintiff âfailed to allege either a plausible objective definition of the term âAll Naturalâ or her subjective definition of the term âAll Naturalâ that is shared by the reasonable consumer.â Id. at 979-80.
To begin with, no subsequent case has adopted Pelayoâs position, and two cases
The Pelayo courtâs reliance on the FTCâs report as a basis to dismiss the action is misplaced. Though not discussed in the courtâs ruling, the FTCâs report relates to the FTCâs Guides for the Use of Environmental Marketing Claims (âGuidesâ), the purpose of which is to âhelp marketers make truthful and substantiated environmental claims[Jâ 75 Fed.Reg. 63552-01, § I (2010).... With regard to the meaning of ânatural,â the FTC chose not to create a specific section in the Guides to define that term. Id. § IV.B.4. The FTC explained that âdefinitions for terms such as natural must be based on what consumers understand those terms to mean,â but that âno commenters provided consumer perception evidence indicating how consumers understand the term ânatural.ââ Id. § IV. B.4.b. In the absence of such information, the FTC declined to proffer specific guidance on the meaning of ânatural,â particularly since consumer perception of the term may vary depending on the context in which it is used. Id.
Nothing in the FTCâs analysis either directly or inferentially supports the Pe-layo courtâs conclusion that it is âimplausibleâ that consumers would be misled or confused by the use of âAll Naturalâ on food product packaging. The FTC simply found that the meaning of ânaturalâ is context-specific, and in the absence of contextualized evidence regarding consumer perceptions, it was inappropriate to provide specific guidance on the meaning of that term.
Thus, rather than justifying the Pelayo courtâs dismissal of the action at the pleading stage, the FTCâs observations support the conclusion that the question of whether consumers were deceived by an âAll Naturalâ designation must be resolved based on consideration of evidence-and not at the pleading stage.
2014 WL 2212216, at *3 (emphasis added). For the same reasons, this Court rejects Pelayo and Defendantsâ reliance thereon. Plaintiffsâ claims are not deficient for failure to offer an alternative definition of âall natural.â See id.
Third, Defendants argue that Plaintiffsâ GMO-based claims fail because the FDA has found that there is no material difference between food produced through bioengineering and those produced naturally. (Id. at 19 (citing the FDAâs âGuidance for Industry Voluntary Labeling Indicating Whether Foods Have or Have Not Been Developed Using Bioengineering, Draft Guidanceâ (D.E. 72-5)).) However, as Plaintiffs point out, Defendantsâ argument attempts âto make the leap from a purported FDA finding [that] there is no material difference between GMO and traditionally bred food to the conclusion that no reasonable consumer would understand the statement âAll Naturalâ to mean the Products were made from non-GMO ingredients.â (Response at 21.) The SAC sufficiently alleges that a reasonable consumer would expect a product labeled âall naturalâ to be free of GMOs. (See SAC ¶¶ 27, 30, 36-45.) And, at this stage of the proceedings, the Court must accept that allegation as true. See Garfield, 466 F.3d at 1261.
Finally, Defendants argue that Plaintiffs are attempting to conflate ânaturalâ with âorganic,â and contend that consumers who do not want foods containing GMOs can avoid them because the âfederal gov
In sum, the SAC sufficiently alleges that the âAll Naturalâ labeling of Defendantsâ Products could mislead a reasonable consumer to his or her detriment. See Williams, 552 F.3d at 939 (reversing the dismissal of UCL and false advertising claims, finding that âthe statement that Fruit Juice Snacks was made with âfruit juice and other all natural ingredientsâ could easily be interpreted by consumers as a claim that all the ingredients in the product were natural, which appears to be false.â); accord Rojas v. Gen. Mills, Inc., No. C 12-5099 WHO, 2014 WL 1248017, at *7-8 (N.D.Cal. Mar. 26, 2014) (â100% Naturalâ and âAll Naturalâ representations on Nature Valley granola bars could mislead a reasonable consumer where the products contained GMOs); Parker v. J.M. Smucker Co., No. C 13-690 SC, 2013 WL 4516156, at *6 (N.D.Cal. Aug. 23, 2013) (plaintiffs allegations that a reasonable consumer would believe that a product labeled as âall naturalâ contained no bioengineered or chemically altered ingredients âcannot be resolved as a matter of lawâ); Vicuna v. Alexia Foods, Inc., No. C 11-6119 PJH, 2012 WL 1497507, at *2 (N.D.Cal. Apr. 27, 2012) (same); Ben & Jerryâs, Nos. C 10-4387 PJH, C 10-4937 PJH, 2011 WL 2111796, at *5-6 (N.D.Cal. May 26, 2011) (same). Accordingly, the Court denies Defendants Motion to Dismiss Claims I, VII, VIII, IX, and X for failure to state claims.
2. Negligent Misrepresentation (Claim II)
Next, Defendant argues that Plaintiffsâ negligent misrepresentation claim (Claim II)âwhich alleges, in part, that â[t]hrough advertising not related to the label, Defendants have failed to disclose that the Products contain [GMOs] and other artificial and synthetic ingredients,â (SAC ¶ 90)âmust be dismissed because the SAC fails to identify the advertising at issue. (Motion at 19.) Plaintiffs argue that they have sufficiently alleged that they âreasonably relied on Defendantsâ âall naturalâ and ânothing artificialâ representations as well as Defendantsâ strategic branding on its labels and websites.â (Response at 23 (quoting SAC ¶ 29).)
âTo state a cause of action for negligent misrepresentation in Florida, a plaintiff must allege: â(1) the defendant made a misrepresentation of material fact that he believed to be true but which was in fact false; (2) the defendant was negligent in making the statement because he should have known the representation was false; (3) the defendant intended to induce the plaintiff to rely ... on the misrepresentation; and (4) injury resulted to the plaintiff acting in justifiable reliance upon the misrepresentation.â â McGee v. JP Morgan Chase Bank, NA, 520 Fed.Appx. 829, 831 (11th Cir.2013) (quoting Simon v. Celebration Co., 883 So.2d 826, 832 (Fla. Dist.Ct.App.2004)).
âThe Eleventh Circuit has ... noted that because actions for negligent misrepresentation in Florida sound in fraud rather than negligence, the pleading requirements contained in Federal Rule of Civil Procedure 9(b) apply to such actions.â Recreational Design & Constr., Inc. v.
The Court finds that Plaintiffs have stated a claim for negligent misrepresentation with respect to the âall naturalâ and ânothing artificialâ representations on the product labeling. With respect to the first two prongs, construing the inferences drawn from the SACâs factual allegations in the light most favorable to Plaintiffs, the Court finds that Claim II alleges that Defendantsâ made a negligent misrepresentation of material fact they should have known was false. (See, e.g., SAC ¶ 89 (âDefendants have negligently represented that the Products have nothing artificial and are all âALL NATURAL,â when in fact, they are not because it contains GMOs.â); id. ¶28 (âDefendantsâ statement that the Products had nothing artificial and were âAll Natural,â was important to Plaintiffs in deciding to purchase and consume the Products because they would not have purchased and consumed the Products had they not been advertised and labeled as âAll Naturalâ....â).)
With respect to the third prong, the SAC sufficiently alleges that Defendants intended to induce the Plaintiffs to rely on the misrepresentation. (See id. ¶ 91 (âDefendants knew or should have known that these omissions would materially affect Plaintiffsâ and Class Membersâ decisions to purchase the Products.â); id. ¶ 82 (âDefendants have deceived reasonable consumers, like Plaintiff and the Class, into believing its Products were something they were notââAll Natural.â â).)
With respect to the fourth prong, the SAC sufficiently alleges that injury resulted to the Plaintiffs acting in justifiable reliance upon the misrepresentation. (See id. ¶ 92 (âPlaintiffs and other reasonable consumers, including the Class members, reasonably relied on Defendantsâ representations set forth herein, and, in reliance thereon, purchased the Products.â); id. ¶ 94 (âPlaintiffs would not have been willing to pay for Defendantsâ Products if they knew that they contained genetically modified organisms and/or other artificial and synthetic ingredients, such as pyridoxine hydrochloride, alpha-tocopherol acetate, hexane-processed soy ingredients and calcium pantothenate.â); id. ¶ 95 (âAs a direct and proximate result of these misrepresentations, Plaintiffs and Members of the Class were induced to purchase and consume Defendantsâ Products, and have suffered damages to be determined at trial in that, among other things, they have been deprived of the benefit of their bargain in that they bought Products that were not what they were represented to be, and they have spent money on Products that had less value than was reflected in the premium purchase price they paid for the Products.â).) Thus, even assuming that Defendants are correct in that the SAC
3. Warranty Claims
Next, Defendants argue that Plaintiffsâ claims for Breach of Implied Warranty of Fitness for Purpose (Claim III) and Breach of Express Warranty (Claim IV) fail because there is no privity. (Motion at 20.) Specifically, they argue that Plaintiffs allege that they bought the products from Publix, Whole Foods, and Trader Joeâs supermarkets, and argue that Florida law requires privity of contract with the defendant in order to recover on express and implied warranty claims. (Id. (citing T.W.M. v. Am. Med. Sys., Inc., 886 F.Supp. 842, 844 (N.D.Fla.1995); Weiss v. Johansen, 898 So.2d 1009, 1011 (Fla.Dist. Ct.App.2005)).) Defendants further argue that the express warranty claim must be dismissed because Plaintiffs failed to allege that Defendants made statements amounting to âan affirmation of fact or promise.â (Id. (citing Fla. Stat. 672.313; Carter Hawley Hale Stores, Inc. v. Conley, 372 So.2d 965, 969 (Fla.Dist.Ct.App.1979)).)
a. Implied Warranty (Claim III)
âFlorida law requires privity of contract to sustain a breach of implied warranty claim.â David v. Am. Suzuki Motor Corp., 629 F.Supp.2d 1309, 1321 (S.D.Fla.2009) (containing a comprehensive discussion of the evolution of the privity requirement in implied warranty claims under Florida law); see also Kramer v. Piper Aircraft Corp., 520 So.2d 37, 39 (1988) (noting that an action for breach of implied warranty exists âwhere privity of contract is shown.â) Because the SAC does not allege privity of contract between Plaintiffs and Defendants, Claim III must be dismissed. See Bailey v. Monaco Coach Corp., 168 Fed.Appx. 893, 895 (11th Cir.2006) (affirming district courtâs dismissal of implied warranty claim because plaintiff lacked privity with defendant manufacturer); Mesa v. BMW of N. Am., LLC, 904 So.2d 450, 458 (Fla.Dist.Ct.App. 2005) (âUnder Florida law, a plaintiff cannot recover economic losses for breach of implied warranty in the absence of privity.â) (citations omitted).
b. Express Warranty (Claim IV)
Whether privity is required in a claim for breach of express warranty under Florida law is not as clear cut. See Smith v. Wm. Wrigley Jr. Co., 663 F.Supp.2d 1336, 1341-1343 (S.D.Fla.2009) (characterizing the privity requirement in Florida warranty claims as âa moving targetâ). Although there is ease law supporting Defendantsâ position that privity is required for express warranty claims, see T.W.M., 886 F.Supp. at 844, several cases involving the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et seq. (âMMWAâ) have not required privity for express warranty claims to advance past the motion to dismiss stage. See, e.g., Rentas v. DaimlerChrysler Corp., 936 So.2d 747, 751 (Fla. Dist.Ct.App.2006). Furthermore, in David v. American Suzuki Motor Corp., which involved express and implied warranty claims under both Florida law and the MMWA, Judge Gold dismissed the implied warranty claims for lack of privity but made no mention of privity in discussing the express warranty claims which survived the motion to dismiss. 629 F.Supp.2d at 1323-24, 1328.
Additionally, in Smithâa case highly analogous to the case at barâJudge Cohn concluded that the plaintiffs claim for breach of express warranty survived the defendantâs motion to dismiss, despite the absence of privity. 663 F Supp.2d at 1343.
The Court need not resolve the issue of whether privity is ever required for express warranty claims under Florida law. Rather, the Court finds that, given the particular facts of this case, the analysis here is relatively straightforward. First, this case is not similar to T.W.M. or [Intergraph Corp. v.] Stearman [555 So.2d 1282 (Fla.Dist.Ct.App.1990) ]. In each of those cases, whether it be a doctor installing an implant or a computer salesman, it could be assumed that the end-purchaser might expect the seller or âmiddle manâ to have relevant knowledge, or even expertise, regarding the manufacturerâs product. Here, it defies common sense to argue that purchasers of Eclipse gum presumed that the cashier at the local convenience store is familiar with the scientific properties of MBE. Second, it is significant that the express warranty the manufacturer allegedly breached is contained on the packaging of Eclipse gum. Compl. ¶ 14. Moreover, the Complaint alleges that Plaintiff relied on the warranty when purchasing the gum. Id. ¶ 8. Accordingly, the Court finds that Plaintiff states a valid claim for breach of express warranty.
Id. This Court is persuaded by JĂŒdge Cohnâs analysis in Smith and, for the same reasons, concludes that Plaintiffs claim for breach of express warranty survives despite the absence of privity.
With respect to Defendantsâ alternative argument, under Florida law, â[a]ny affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.â Fla. Stat. 672.313(1)(a). Construing the SACs allegations in the light most favorable to Plaintiffs, and drawing all reasonable inferences therefrom, the Court finds that the SAC sufficiently states a claim for breach of express warranty under the statutory definition. See Vicuna v. Alexia Foods, Inc., No. C 11-6119 PJH, 2012 WL 1497507, at *2 (N.D.Cal. Apr. 27, 2012) (holding that the plaintiffs adequately stated express warranty claim regarding âall naturalâ characterization of potato containing allegedly synthetic ingredient under Californiaâs parallel âaffirmation of fact or promiseâ standard).
4. Declaratory Judgment (Claim V)
Claim V seeks a declaratory judgment ârequiring Defendants to cease using genetically modified organisms in its All Natural products and/or stopping Defendants from representing its products are All Natural when they are not.â (SAC ¶ 115.) The Court finds that Claim V is a claim for injunctive relief, not a declaratory judgment.
A declaratory judgment is â[a] binding adjudication that establishes the rights and other legal relations of the parties without providing for or ordering enforcement.â
In a general sense, every order of a court which commands or forbids is an injunction; but in its accepted legal sense, an injunction is a judicial process or mandate operating in personam by which, upon certain established principles of equity, a party is required to do or refrain from doing a particular thing. An injunction has also been defined as a writ framed according to the circumstances of the case, commanding an act which the court regards as essential to justice, or restraining an act which it esteems contrary to equity and good conscience; as a remedial writ which courts issue for the purpose of enforcing their equity jurisdiction; and as a writ issuing by the order and under the seal of a court of equity.
1 Howard C. Joyce, A Treatise on the Law Relating to Injunctions § 1, at 2-3 (1909), as quoted in Blackâs Law Dictionary at 904.
Claim V does not request a binding adjudication regarding the partiesâ rights and legal relations, but rather requests an order commanding Defendants âto cease using genetically modified organisms in its All Natural products and/or stopping Defendants from representing its products are All Natural....â (SAC ¶ 115.) Such a request is, by definition, one for injunctive relief. However, âto obtain a permanent injunction, a party must show: (1) that he has prevailed in establishing the violation of the right asserted in his complaint; (2) there is no adequate remedy at law for the violation of this right; and (3) irreparable harm will result if the court does not order injunctive relief.â Alabama v. U.S. Army Corps of Engârs, 424 F.3d 1117, 1128 (11th Cir. 2005). The Court finds that: (1) a permanent injunction is premature in that Plaintiffs have not prevailed in establishing the violation of the right asserted in the SAC; and (2) an adequate remedy at law exists. An injunction is therefore inappropriate, and Claim V is therefore dismissed.
5. Money Had and Received (Claim VI)
Next, Defendants argue that Plaintiffsâ claim for Money Had and Received must be dismissed because âPlaintiffs do notâ and cannotâallege that the money they paid for Kashi products was intended to be used for the benefit of the Plaintiffs, as that money was undisputedly provided to Publix, Whole Foods, and Trader Joeâs in exchange for Kashi cereal and snack bars.â (Motion at 21.) They further argue that the claim may only be pursued to the extent that there is privity between the plaintiff and defendant, which is absent here. (Id.) Plaintiffs argue that the claim survives because the SAC properly alleges that they paid a price premium in exchange for Defendantsâ products and had they known that the products were not all natural they would not have been deprived of their money. (Response at 25.) They further allege that âDefendantsâ privity argument fails because the money Plaintiffs paid to retailers in exchange for the Products, in fact, provides significant monetary benefits to Defendants.â (Id.)
âFlorida law recognizes the general rule that âan action for money had and received ... can be maintained where money is paid under a mistake of fact or where money has been obtained through
Claim VI of the SAC alleges that âDefendants have represented on its label that its Products are âAll Naturalâ when in fact, they are not, because they contain GMOs, a fact that Defendants fail to disclose ----â (SAC ¶ 120.) It further alleges that Defendants received, accepted, and retained money from the Plaintiffs through the purchase price obtained from sales of the Products to Plaintiffs. (Id. ¶¶ 122-23.) It further alleges that âDefendants have profited from their unlawful, unfair, misleading, and deceptive practices and advertising at the expense of Plaintiffs and Class Members, under circumstances in which it would be unjust for Defendants to be permitted to retain the benefit.â (Id. ¶ 124.) The Court finds that Plaintiffs have sufficiently pled the elements of a money had and received cause of action.
With respect to Defendantsâ argument that the claim fails for lack of privity, the Supreme Court of Florida has stated:
When the fact is proved that one has money received from another, if the recipient cannot show a legal and equitable ground for retaining it, the law creates the privity and promise necessary to sustain the action for money had and received. And it is settled that money paid under a mistake of facts may be so recovered, it being considered unconscionable that money so paid should be detained from the payor on his discovery of the mistake and demand for the moneyâs return.
First State Bank of Fort Meade v. Singletary, 124 Fla. 770, 169 So. 407, 408 (1936) (emphasis added); see also Anchor Sav. Bank v. Berlin, 445 So.2d 675, 676 (Fla. Dist.Ct.App.1984); Ferguson v. Cotler, 382 So.2d 1315, 1316 (Fla.Dist.Ct.App.1980). Accordingly, the Court rejects Defendantsâ
E. Whether Plaintiffs Have Standing for Products They Did Not Purchase
The SAC alleges that Plaintiffs purchased eight of the eighty-one products listed in the SAC. (See SAC ¶¶ 21-23.) Defendants argue that Plaintiffs lack standing to pursue any claims involving Kashi products they did not purchase. (Motion at 21.) Plaintiffs argue that â[a] named plaintiff has standing to assert claims for products he did not purchase when those products are sufficiently similar and part of the same product line.â (Response at 25 (citing Colucci v. ZonePerfect Nutrition Co., No. 12-2907-SC, 2012 WL 6737800 (N.D.Cal. Dec. 28, 2012); Miller v. Ghirardelli Chocolate Co., 912 F.Supp.2d 861, 869 (N.D.Cal.2012)).) Plaintiffs contend that the non-purchased products are sufficiently similar to confer standing. (Id. at 25-26.) In reply, Defendants cite to Tohack v. GNC Holdings, Inc., a case from this District in which the Court held that the class representative did not have standing to âraise claims relating to those other products which he did not purchase.â No. 13-80526-CIV, 2013 WL 5206103, at *5 (S.D.Fla. Sept. 13, 2013).
In Tohack, a single plaintiff brought a single FDUTPA claim against GNC challenging representations GNC made about its entire âTriFlexâ line of products, even though the plaintiff had only purchased one product from the Tri Flex line (the Tri Flex Vitapak). Id. at *1. GNC argued Plaintiff lacked standing to challenge the non-purchased items. Id. at *4. The court noted that some courts have dismissed similar claims for lack of standing to challenge the non-purchased products, see id. (citing Pearson v. Target Corp., No. 11-7972, 2012 WL 7761986 (N.D.Ill. Nov. 9, 2012)), while other courts hold that whether a class representative has standing to challenge non-purchased products is a question more appropriate for the class certification stage, id. (citing Cardenas v. NBTY, Inc., 870 F.Supp.2d 984, 991-92 (E.D.Cal.2012)), while still other courts have permitted plaintiffs to maintain consumer class actions involving products they did not purchase, id. (citing In re Frito-Lay N. Am., Inc., No. 12-2413, 2013 WL 4647512 (E.D.N.Y. Aug. 29, 2013)). However, the Court in Tohack stated that
the law in the Eleventh Circuit is clear that at least one named plaintiff must establish Article III standing for each class subclaim. Prado-Steiman v. Bush, 221 F.3d 1266, 1279-80 (11th Cir. 2000). In other words, Article III standing of a named plaintiff must be established on a claim-by-claim basis within the Eleventh Circuit, and deferring the standing determination to the class[-]certification stage will yield no different result.
Id. The court concluded:
The Article III standing analysis requires a plaintiff to demonstrate that he has suffered an injury-in-fact. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). Because Plaintiff alleges that he purchased the Tri Flex Vitapak, but not other Tri Flex products, he has failed to plead that he suffered any injury with regard to products other than the Tri Flex Vitapak. See Guerrero v. Target Corp., 889 F.Supp.2d 1348, 1353-54 (S.D.Fla.2012) (standing satisfied for FDUTPA claim where plaintiff purchased product forming basis of claim). Plaintiff therefore cannot establish his Article III standing with respect to any product other than the Vitapak, see Lu-*1393 jan, 504 U.S. at 560-61 [112 S.Ct. 2130], and cannot raise claims relating to those other products which he did not purchase, see Prado-Steiman, 221 F.3d at 1279-80. The claims Plaintiff has standing to bring are therefore limited to those relating to the TriFlex Vitapak.
Id. at *5.
The Court acknowledges that âthere is authority going both waysâ on this issue. Astiana v. Dreyerâs Grand Ice Cream, Inc., Nos. C-11-2910 EMC, C-11-3164 EMC, 2012 WL 2990766, at *11 (N.D.Cal. July 20, 2012), and other courts in other circuits permit class representatives to challenge non-purchased products that are âsufficiently similarâ to the purchased products.
Although the Court finds persuasive arguments supporting both positions, it appears that Toback is the only case from the Eleventh Circuit to directly address the issue. Relying on the Eleventh Circuitâs opinion in Prado-Steiman, 221 F.3d at 1279-80, Toback held that a named plaintiff in a consumer class action lacks standing to challenge a non-purchased product because there is no injury-in-fact as to that product, even if he purchased a substantially similar product. 2013 WL 5206103, at *4-5. This interpretation is consistent with other pronouncements from the Eleventh Circuit. See Wooden v. Bd. of Regents of Univ. Sys. of Ga., 247 F.3d 1262, 1288 (11th Cir.2001) (â[J]ust as a plaintiff cannot pursue an individual claim unless he proves standing, a plaintiff cannot represent a class unless he has standing to raise the claims of the class he seeks to represent.â); Griffin v. Dugger, 823 F.2d 1476, 1483 (11th Cir.1987) (â[The] individual injury requirement is not met by alleging âthat injury has been suffered by other, unidentified members of the class to which [the plaintiff] belong[s] and which [he] purports] to represent.â Worth v. Seldin, 422 U.S. 490, 502, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975) ... Moreover, it is not enough that a named plaintiff can establish a case or controversy between himself and the defendant by virtue of having standing as to just one of many claims he wishes to assert. Rather, each claim must be analyzed separately, and a claim cannot be asserted on behalf of a class unless at least one named plaintiff has suffered the injury that gives rise to that claim.â). Tobackâs holding is also consistent with U.S. Supreme Court precedent:
It is not enough that the conduct of which the plaintiff complains will injure someone. 'The complaining party must also show that he is within the class of persons who will be concretely affected. Nor does a plaintiff who has been subject to injurious conduct of one kind possess by virtue of that injury the necessary stake in litigating conduct of another kind, although similar, to which he has not been subject.
Blum v. Yaretsky, 457 U.S. 991, 999, 102 S.Ct. 2777, 73 L.Ed.2d 534 (1982) (second emphasis added)
1. KashiÂź GOLEANÂź Crunch! Cereal;
2. KashiÂź GOLEANÂź Crunchy! Chocolate Peanut Protein & Fiber Bars;
3. KashiÂź GOLEANÂź Roll! Chocolate Peanut Protein & Fiber Bars;
4. KashiÂź TLC Trail Mix Chewy Granola Bars;
5. KashiÂź TLC Honey Almond Flax Chewy Granola Bars;
6. KashiÂź TLC Peanut Peanut Butter Chewy Granola Bars;
7. KashiÂź TLC Cherry Dark Chocolate Chewy Granola Bars; and
8. KashiÂź TLC Pumpkin Spice Flax Crunchy Granola Bars.
(See SAC ¶¶ 21-23.)
F. Whether Defendant Kellogg Company Must be Dismissed
Finally, Defendants argue that Defendant The Kellogg Company (âKelloggâ) must be dismissed from this action because the SAC insufficiently alleges that Kashi is the âmere instrumentalityâ or âalter egoâ of Kellogg. (Motion at 22.) Plaintiff agrees that a parent corporation cannot be held liable for the actions of its subsidiary unless the subsidiary is deemed to be a mere instrumentality of the parent, but argues that this issue presents a factual question not suitable for resolution at the motion to dismiss stage. (Response at 27-28.)
In Florida, â[a] parent corporation will not be held liable for the actions of its subsidiary unless the subsidiary is deemed to beâ a mere instrumentality of the parent.â Federated Title Insurers, Inc. v. Ward, 538 So.2d 890, 891 (Fla.Dist. Ct.App.1989) (citation omitted).
For a subsidiary to be considered a mere instrumentality of a parent corporation, there must be: (1) control of the parent over the subsidiary âto the degree that it is a mere instrumentality.â (2) parent committed fraud or wrongdoing through its subsidiary. (3) unjust loss or injury to a claimant, such as when the subsidiary is insolvent.... A mere instrumentality finding is rare.
Id. (citations omitted). Or, as the Eleventh Circuit has stated: âFlorida law allows a party to pierce the corporate veil and hold a parent corporation liable for its subsidiaryâs actions if it can demonstrate first, âthat the subsidiary was a âmere instrumentalityâ of the parent,â and second, âthat the parent engaged in âimproper conductâ through its organization or use of the subsidiary.â â SEB S.A. v. Sunbeam Corp., 148 Fed.Appx. 774, 800 (11th Cir. 2005) (quoting Johnson Enters, of Jacksonville, Inc. v. FPL Grp., Inc., 162 F.3d 1290, 1320 (11th Cir.1998)).
Similarly, â[u]nder California law, a parent corporation may be held liable for the acts of its subsidiary only if that subsidiary is either the alter ego or the agent of the parent.â Salkin v. United Servs. Auto. Assân, 767 F.Supp.2d 1062, 1065 (C.D.Cal.2011) (citations omitted).
To apply the alter ego doctrine, there must be: (1) âsuch a unity of interest and ownership between the corporation and its equitable owner that the separate personalities ... do not in reality exist,â and (2) âthere must be an inequitable result if the acts in question are treated as those of the corporation alone.â ... Some of the factors a court*1395 should consider in determining whether to apply the doctrine are:
âcommingling of funds and other assets of the two entities, the holding out by one entity that it is liable for the debts of the other, identical equitable ownership in the two entities, use of the same offices and employees, and use of one as a mere shell or conduit for the affairs of the other.â
Id. (quoting Sonora Diamond Corp. v. Super. Ct., 83 Cal.App.4th 523, 99 Cal.Rptr.2d 824 (2000)).
The Court concludes that the SAC must be dismissed as to Kellogg because it simply does not allege a âmere instrumentalityâ or âalter egoâ theory of liability. See Molinos Valle Del Cibao, C. por A. v. Lama, 633 F.3d 1330, 1351 (11th Cir.2011) (affirming district courtâs rejection of agency theory of liability for failure to plead it in the amended complaint); see also Pegasus Imaging Corp. v. Northrop Grumman Corp., No. 08:07-CV-1937-T-27EAJ, 2008 WL 5099691, at *2-3 (M.D.Fla. Nov. 25, 2008) (dismissing claim against parent company for failure to plead sufficient facts establishing liability for subsidiary). In fact, the SAC does not even mention Kellogg beyond noting that Kashi is a âsubsidiaryâ of Kellogg, and alleging that Kellogg âpromoted and marketed the Products at issue.â (SAC ¶¶ 19-20.) This falls far short of establishing that Kashi is a âmere instrumentalityâ or âalter egoâ of Kellogg, as is required to survive Defendantsâ Motion. Accordingly, the Court dismisses the SAC as to Defendant The Kellogg Company.
Y. Conclusion
Accordingly, it is ORDERED AND ADJUDGED that:
1.The Partiesâ Agreed Motion to File Documents Under Seal (D.E. 73), filed December 4, 2013, is GRANTED;
2. Plaintiffsâ Unopposed Motion to Request Judicial Notice in Support of their Response in Opposition to Defendantsâ Motion to Dismiss (D.E. 81), filed December 23, 2013, is GRANTED;
3. The Partiesâ Agreed Motion to File Documents Under Seal (D.E. 88), filed January 10, 2014, is GRANTED;
4. Consistent with this Order, Defendantsâ Motion Requesting Judicial Notice in Support of their Motion to Dismiss (D.E. 72), filed December 2, 2013, is GRANTED IN PART AND DENIED IN PART;
5. Consistent with this Order, Defendantsâ Motion to Dismiss Plaintiffsâ Second Amended Complaint (D.E. 74), filed December 4, 2014, is GRANTED IN PART AND DENIED IN PART;
6. The SAC is DISMISSED with prejudice as to Defendant The Kellogg Company;
7. Plaintiffsâ claim for Implied Warranty of Fitness for Purpose (Claim III) is DISMISSED with prejudice;
8. Plaintiffsâ claim for a Declaratory Judgment (Claim V) is DISMISSED with prejudice; and
9. Consistent with this Order, Plaintiffsâ lack standing to assert claims regarding products they did not purchase, and the surviving claims are therefore limited to the eight products the SAC alleges Plaintiffsâ purchased.
. Unless otherwise noted, the following facts are gleaned from Plaintiffsâ Amended Consolidated Class Action Complaint (SAC, D.E. 58), and are deemed to be true for purposes of Defendants' Motion. The pagination the Court uses in its citations to the pleadings are the page numbers assigned by CM/ECF in the top right-corner of the document, not the page numbers assigned by the Parties at the bottom of the document.
. Indeed, Exhibit 5 explicitly states that it "Contains Nonbinding Recommendations.â (D.E. 72-5 at 1.)
. The issue in Astiana was whether the USDA letter, which was submitted as "new evi- . dence,â warranted modification of the court's order on class certification. 295 F.R.D. at 491.
. The USDA regulates meat and poultry and the FDA regulates all other types of food. Compare 21 U.S.C. § 452 (providing for the inspection of poultry and poultry products to prevent mis-branding and adulteration); and 21 U.S.C. § 603 (providing for the inspection of meat and meat products to prevent misbranding and adulteration); with 21 U.S.C. § 393(b)(2)(A) (empowering the FDA with responsibility to protect the public health by ensuring that "foods are safe, wholesome, sanitary, and properly labeledâ but exempting meat and meat food products from the FDA to the extent that the Meat Inspection Act applies).
. The Court further notes that the two cases Defendants cite in this section of their Motion are inapposite and/or overruled. (See Motion at 6 (citing Veal v. Citrus World, Inc., No. 12-0801, 2013 WL 120761, at *9 (N.D.Ala. Jan. 8, 2013) and Pom Wonderful LLC v. Coca-Cola Co., 679 F.3d 1170 (9th Cir.2012) (revâd POM Wonderful LLC v. Coca-Cola Co., - U.S. -, 134 S.Ct. 2228, 189 L.Ed.2d 141 (2014))).) The court in Veal dismissed the plaintiff's complaint for lack of standing for failure to allege a concrete injury, not because Plaintiff's claims were preempted. 2013 WL 120761, at *10. And the U.S. Supreme Court recently reversed the Ninth Circuitâs opinion in Pom Wonderful. See â U.S. -, 134 S.Ct. 2228 (2014).
. The FDA had earlier explained that purified water was exempt from the source-identification requirement " 'because consumers purchase this water because of its treatment and subsequent purity rather than because of its source.' " Id. at 536 (quoting Nonalcoholic Beverages: Repeal of Soda Water Standard of Identity; Amendment of Bottled Water Quality Standard, 54 Fed.Reg. 398, 399 (Jan. 6, 1989)).
. The court further found that the FDA "was not concerned with any misleading potential of graphics on bottles of purified water, based on its conclusion that with respect to purified water, the purification, and not the source, is the reason consumers buy it." Id. at 537.
. See http://www.nytimes.com/2012/05/25/ science/dispute-overlabeling-of-genetically-modified-food.html?âr=0 (last visited January 15, 2013).
. Eng, Monica. "Debate rages over labeling biotech foods; Industry resists listing genetically modified ingredients; consumer worries continue.â L.A. Times. June 2, 2011. BUSINESS; Business Desk; Part B; p. 4.
. FDA Consumer Health Information, Food Label Helps Consumers Make Healthier Choices, available at www.fda.gov/downloads/ ForConsumers/ConsumerUpdateslUCM 199361.pdf.
. Kashi Yearbook, www.kashi.com/meetâ us/yearbook
. Michael Antoniou, Claire Robinson, and John Fagan. GMO
MYTHS AND TRUTHS: AN EVIDENCE-BASED EXAMINATION OF THE CLAIMS MADE FOR THE SAFETY AND EFFICACY OF GENETICALLY MODIFIED CROPS. Earth Open Source. June 2012 at 11.
. As previously discussed, the Court denies Defendantsâ request to take judicial notice of the USDA letter regarding hexane-processed soy. (See Section II, supra.) Because Defendantsâ preemption argument with respect to hexane-processed soy relies exclusively upon the USDA letter, the Court declines to address it.
. Claim II specifically incorporates by reference the allegations set forth in the previous paragraphs. (SAC ¶ 88.)
. Although Claim VI references a California definition for a money had and received claim, it is listed under the "Florida Causes of Actionâ heading, and the only case to which Plaintiffsâ cite in their Response is a Florida case. (See Response at 25 (citing Sharp v. Bowling, 511 So.2d 363, 364-65 (Fla.Dist.Ct. App.1987)).) Accordingly, the Court will proceed with its analysis of the money had and received claim by looking to Florida law.
. There is actually a split of authority on the issue within the Ninth Circuit alone, as discussed by Miller, 912 F.Supp.2d at 869 and Dreyerâs Grand, 2012 WL 2990766, at *11-12.