Altria Group, Inc. v. Good
Full Opinion (html_with_citations)
delivered the opinion of the Court.
Respondents, who have for over 15 years smoked âlightâ cigarettes manufactured by petitioners, Philip Morris USA, Inc., and its parent company, Altria Group, Inc., claim that petitioners violated the Maine Unfair Trade Practices Act
I
Respondents are Maine residents and longtime smokers of Marlboro Lights and Cambridge Lights cigarettes, which are manufactured by petitioners. Invoking the diversity jurisdiction of the Federal District Court, respondents filed a complaint alleging that petitioners deliberately deceived them about the true and harmful nature of âlightâ cigarettes in violation of the MUTPA, Me. Rev. Stat. Ann., Tit. 5, § 207 (Supp. 2008).
Petitioners moved for summary judgment on the ground that the Labeling Act, 15 U. S. C. § 1334(b), expressly preempts respondentsâ state-law cause of action. Relying on our decisions in Cipollone v. Liggett Group, Inc., 505 U. S. 504 (1992), and Lorillard Tobacco Co. v. Reilly, 533 U. S.
Respondents appealed, and the Court of Appeals reversed. The Court of Appeals first rejected the District Courtâs characterization of respondentsâ claim as a warning neutralization claim akin to the pre-empted claim in Cipollone. 501 F. 3d 29, 37, 40 (CA1 2007). Instead, the court concluded that respondentsâ claim is in substance a fraud claim that alleges that petitioners falsely represented their cigarettes as âlightâ or having âlowered tar and nicotineâ even though they deliver to smokers the same quantities of those components as do regular cigarettes. Id., at 36. âThe fact that these alleged misrepresentations were unaccompanied by additional statements in the nature of a warning does not transform the claimed fraud into failure to warnâ or warning neutralization. Id., at 42-43. Finding respondentsâ claim indistinguishable from the non-pre-empted fraud claim at issue in Cipollone, the Court of Appeals held that it is not expressly pre-empted. The court also rejected petitionersâ argument that respondentsâ claim is impliedly pre-empted because their success on that claim would stand as an obsta
In concluding that respondentsâ claim is not expressly preempted, the Court of Appeals considered and rejected the Fifth Circuitâs reasoning in a similar case. 501 F. 3d, at 45. Unlike the court below, the Fifth Circuit likened the plaintiffsâ challenge to the use of âlightâ descriptors to Cipolloneâs warning neutralization claim and thus found it expressly pre-empted. Brown v. Brown & Williamson Tobacco Corp., 479 F. 3d 383, 392-393 (2007). We granted the petition for certiorari to resolve this apparent conflict. 552 U. S. 1162 (2008).
II
Article VI, cl. 2, of the Constitution provides that the laws of the United States âshall be the supreme Law of the Land;... any Thing in the Constitution or Laws of any state to the Contrary notwithstanding.â Consistent with that command, we have long recognized that state laws that conflict with federal law are âwithout effect.â Maryland v. Louisiana, 451 U. S. 725, 746 (1981).
Our inquiry into the scope of a statuteâs pre-emptive effect is guided by the rule that ââ[t]he purpose of Congress is the ultimate touchstoneâ in every pre-emption case.â Medtronic, Inc. v. Lohr, 518 U. S. 470, 485 (1996) (quoting Retail Clerks v. Schermerhorn, 375 U. S. 96, 103 (1963)). Congress may indicate pre-emptive intent through a statuteâs express language or through its structure and purpose. See Jones v. Rath Packing Co., 430 U. S. 519, 525 (1977). If a federal law contains an express pre-emption clause, it does not immediately end the inquiry because the question of the substance and scope of Congressâ displacement of state law still remains. Pre-emptive intent may also be inferred if the scope of the statute indicates that Congress intended federal law to occupy the legislative field, or if there is an actual
When addressing questions of express or implied preemption, we begin our analysis âwith the assumption that the historic police powers of the States [are] not to be superseded by the Federal Act unless that was the clear and manifest purpose of Congress.â Rice v. Santa Fe Elevator Corp., 331 U. S. 218, 230 (1947). That assumption applies with particular force when Congress has legislated in a field traditionally occupied by the States. Lohr, 518 U. S., at 485; see also Reilly, 533 U. S., at 541-542 (âBecause âfederal law is said to bar state action in [a] fiel[d] of traditional state regulation,â namely, advertising, we âwor[k] on the assumption that the historic police powers of the States [a]re not to be superseded by the Federal Act unless that [is] the clear and manifest purpose of Congressââ (citation omitted)). Thus, when the text of a pre-emption clause is susceptible of more than one plausible reading, courts ordinarily âaccept the reading that disfavors pre-emption.â Bates v. Dow Agrosciences LLC, 544 U. S. 431, 449 (2005).
Congress enacted the Labeling Act in 1965
The stated purpose of the Labeling Act is
âto establish a comprehensive Federal program to deal with cigarette labeling and advertising with respect to any relationship between smoking and health, wherebyâ
â(1) the public may be adequately informed that cigarette smoking may be hazardous to health by inclusion of a warning to that effect on each package of cigarettes; and
â(2) commerce and the national economy may be (A) protected to the maximum extent consistent with this declared policy and (B) not impeded by diverse, nonuniform, and confusing cigarette labeling and advertising regulations with respect to any relationship between smoking and health.â 79 Stat. 282, 15 U. S. C. § 1331.
The requirement that cigarette manufacturers include in their packaging and advertising the precise warnings mandated by Congress furthers the Actâs first purpose. And the Actâs pre-emption provisions promote its second purpose.
As amended, the Labeling Act contains two express preemption provisions. Section 5(a) protects cigarette manufacturers from inconsistent state labeling laws by prohibiting the requirement of additional statements relating to smoking and health on cigarette packages. 15 U. S. C. § 1334(a). Section 5(b), which is at issue in this case, provides that â[n]o requirement or prohibition based on smoking and health shall be imposed under State law with respect to the adver
Together, the labeling requirement and pre-emption provisions express Congressâ determination that the prescribed federal warnings are both necessary and sufficient to achieve its purpose of informing the public of the health consequences of smoking. Because Congress has decided that no additional warning statement is needed to attain that goal, States may not impede commerce in cigarettes by enforcing rules that are based on an assumption that the federal warnings are inadequate. Although both of the Actâs purposes are furthered by prohibiting States from supplementing the federally prescribed warning, neither would be served by limiting the Statesâ authority to prohibit deceptive statements in cigarette advertising. Petitioners acknowledge that âCongress had no intention of insulating tobacco companies from liability for inaccurate statements about the relationship between smoking and health.â Brief for Petitioners 28. But they maintain that Congress could not have intended to permit the enforcement of state fraud rules because doing so would defeat the Labeling Actâs purpose of preventing nonuniform state warning requirements. 15 U. S. C. § 1331.
Although it is clear that fidelity to the Actâs purposes does not demand the pre-emption of state fraud rules, the principal question that we must decide is whether the text of § 1334(b) nevertheless requires that result.
Ill
We have construed the operative phrases of § 1334(b) in two prior cases: Cipollone, 505 U. S. 504, and Reilly, 533 U. S. 525. On both occasions we recognized that the phrase âbased on smoking and healthâ modifies the state-law rule at issue rather than a particular application of that rule.
In Cipollone, the plurality, which consisted of Chief Justice Rehnquist and Justices White, OâConnor, and Stevens, read the pre-emption provision in the 1969 amendments to the Labeling Act to pre-empt common-law rules as well as positive enactments. Unlike Justices Blackmun, Kennedy, and Souter, the plurality concluded that the provision does not preclude all common-law claims that have some relationship to smoking and health. 505 U. S., at 521-523. To determine whether a particular common-law claim is preempted, the plurality inquired âwhether the legal duty that is the predicate of the common-law damages action constitutes a 'requirement or prohibition based on smoking and health . . . with respect to . . . advertising or promotion,â giving that clause a fair but narrow reading.â Id., at 524.
Petitioners endeavor to distance themselves from that holding by arguing that respondentsâ claim is more analogous to the âwarning neutralizationâ claim found to be pre-empted in Cipollone. Although the plurality understood the plaintiff to have presented that claim as a âtheory of fraudulent misrepresentation,â id., at 528, the gravamen of the claim was the defendantsâ failure to warn, as it was âpredicated on a state-law prohibition against statements in advertising and promotional materials that tend to minimize the health hazards associated with smoking,â id., at 527. Thus understood, the Cipollone pluralityâs analysis of the warning neutralization claim has no application in this case.
Once that erroneous distinction is set aside, it is clear that our holding in Cipollone that the common-law fraud claim was not pre-empted is directly applicable to the statutory claim at issue in this case. As was true of the claim in Cipollone, respondentsâ claim that the deceptive statements âlightâ and âlowered tar and nicotineâ induced them to purchase petitionersâ product alleges a breach of the duty not to deceive.
Our decision in Reilly is consistent with Cipolloneâs analysis. Reilly involved regulations promulgated by the Massachusetts attorney general â âin order to address the incidence of cigarette smoking and smokeless tobacco use by children under legal age . . . [and] in order to prevent access to such products by underage consumers.â â 533 U. S., at 533 (quoting 940 Code Mass. Regs. §21.01 (2000)). The regulations did not pertain to the content of any advertising; rather, they placed a variety of restrictions on certain cigarette sales and the location of outdoor and point-of-sale cigarette advertising. The attorney general promulgated those restrictions pursuant to his statutory authority to prevent unfair or deceptive trade practices. Mass. Gen. Laws, ch. 93A, § 2 (West 1996). But although the attorney generalâs authority derived from a general deceptive practices statute like the one at issue in this case, the challenged regulations targeted advertising that tended to promote tobacco use by children instead of prohibiting false or misleading statements. Thus, whereas the âprohibitionâ in Cipollone was the common-law fraud rule, the âprohibitionsâ in Reilly were the targeted regulations. Accordingly, our holding in Reilly that the reg
It is true, as petitioners argue, that the appeal of their advertising is based on the relationship between smoking and health. And although respondents have expressly repudiated any claim for damages for personal injuries, see App. 26a, their actual injuries likely encompass harms to health as well as the monetary injuries they allege. These arguments are unavailing, however, because the text of § 1334(b) does not refer to harms related to smoking and health. Rather, it pre-empts only requirements and prohibitionsâ i. e., rules â that are based on smoking and health. The MUTPA says nothing about either âsmokingâ or âhealth.â It is a general rule that creates a duty not to deceive and is therefore unlike the regulations at issue in Reilly.
Petitioners argue in the alternative that we should reject the express pre-emption framework established by the Cipollone plurality and relied on by the Court in Reilly. In so doing, they invoke the reasons set forth in the separate opinions of Justice Blackmun (who especially criticized the pluralityâs holding that the failure-to-warn claim was preempted) and Justice Scalia (who argued that the fraud claim also should be pre-empted). While we again acknowledge that our analysis of these claims may lack âtheoretical elegance,â we remain persuaded that it represents âa fair understanding of congressional purpose.â Cipollone, 505 U. S., at 529-530, n. 27 (plurality opinion).
At issue in Wolens was the pre-emptive effect of the Airline Deregulation Act of 1978 (ADA), 49 U. S. C. App. § 1305(a)(1) (1988 ed.), which prohibits States from enacting or enforcing any law ârelating to rates, routes, or services of any air carrier.â The plaintiffs in that case sought to bring a claim under the Illinois Consumer Fraud and Deceptive Business Practices Act, 111. Comp. Stat., ch. 815, § 505 (West 1992). Our conclusion that the state-law claim was pre-empted turned on the unusual breadth of the ADAâs pre-emption provision. We had previously held that the meaning of the key phrase in the ADAâs pre-emption provision, â ârelating to rates, routes, or services,â â is a broad one. Morales v. Trans World Airlines, Inc., 504 U. S. 374, 383-384 (1992) (emphasis added). Relying on precedents construing the pre-emptive effect of the same phrase in the Employee Retirement Income Security Act of 1974, 29 U. S. C. § 1144(a), we concluded that the phrase âârelating toâ â indicates Congressâ intent to pre-empt a large area of state law to further its purpose of deregulating the airline industry. 504 U. S., at 383-384.
Petitionersâ reliance on Riegel is similarly misplaced. The plaintiffs in Riegel sought to bring common-law design, manufacturing, and labeling defect claims against the manufacturer of a faulty catheter. The case presented the question whether those claims were expressly pre-empted by the Medical Device Amendments of 1976 (MDA), 21 U. S. C. § 360c et seq. The MDAâs pre-emption clause provides that no State ââmay establish or continue in effect with respect to a device . . . any requirementâ relating to safety or effectiveness that is different from, or in addition to, federal requirements.â Riegel, 552 U. S., at 328 (quoting 21 U. S. C. § 360k(a); emphasis deleted).
The catheter at issue in Riegel had received premarket approval from the Food and Drug Administration (FDA). We concluded that premarket approval imposes ârequirement[s] relating to safety [and] effectivenessâ because the FDA requires a device that has received premarket approval to be made with almost no design, manufacturing, or labeling deviations from the specifications in its approved application. The plaintiffsâ products liability claims fell within the core of the MDAâs pre-emption provision because they sought to impose different requirements on precisely those aspects of the device that the FDA had approved. Unlike the Cipollone plaintiffâs fraud claim, which fell outside of the Labeling Actâs pre-emptive reach because it did not seek to impose a
In sum, we conclude now, as the plurality did in Cipollone, that âthe phrase âbased on smoking and healthâ fairly but narrowly construed does not encompass the more general duty not to make fraudulent statements.â 505 U. S., at 529.
IV
As an alternative to their express pre-emption argument, petitioners contend that respondentsâ claim is impliedly preempted because, if allowed to proceed, it would present an obstacle to a longstanding policy of the FTC. According to petitioners, the FTC has for decades promoted the development and consumption of low tar cigarettes and has encouraged consumers to rely on representations of tar and nicotine content based on Cambridge Filter Method testing in choosing among cigarette brands. Even if such a regulatory policy could provide a basis for obstacle pre-emption, petitionersâ description of the FTCâs actions in this regard are inaccurate. The Government itself disavows any policy authorizing the use of âlightâ and âlow tarâ descriptors. Brief for United States as Amicus Curiae 16-33.
In 1966, following the publication of the Surgeon Generalâs report on smoking and health, the FTC issued an industry guidance stating its view that âa factual statement of the tar and nicotine content (expressed in milligrams) of the mainstream smoke from a cigarette,â as measured by Cambridge Filter Method testing, would not violate the FTC Act. App. 478a. The .Commission made clear, however, that the guid
Based on these events, petitioners assert that âthe FTC has required tobacco companies to disclose tar and nicotine yields in cigarette advertising using a government-mandated testing methodology and has authorized them to use descriptors as shorthand references to those numerical test results.â Brief for Petitioners 2 (emphasis in original). As the foregoing history shows, however, the FTC has in fact never required that cigarette manufacturers disclose tar and nicotine yields, nor has it condoned representations of those yields through the use of âlightâ or âlow tarâ descriptors.
Subsequent Commission actions further undermine petitionersâ claim. After the tobacco companies agreed to report tar and nicotine yields as measured by the Cambridge Filter Method, the FTC continued to police cigarette companiesâ misleading use of test results. In 1983, the FTC responded to findings that tar and nicotine yields for Barclay cigarettes obtained through Cambridge Filter Method testing were deceptive because the cigarettes in fact delivered
This history shows that, contrary to petitionersâ suggestion, the FTC has no longstanding policy authorizing collateral representations based on Cambridge Filter Method test results. Rather, the FTC has endeavored to inform consumers of the comparative tar and nicotine content of different cigarette brands and has in some instances prevented misleading representations of Cambridge Filter Method test results. The FTCâs failure to require petitioners to correct their allegedly misleading use of âlightâ descriptors is not evidence to the contrary; agency nonenforcement of a fed
More telling are the FTCâs recent statements regarding the use of âlightâ and âlow tarâ descriptors. In 1997, the Commission observed that â[t]here are no official definitions forâ the terms â âlightâ â and â âlow tar,â â and it sought comments on whether âthere [is] a need for official guidance with respect to the termsâ and whether âthe descriptors convey implied health claims.â 62 Fed. Reg. 48163. In November 2008, following public notice and comment, the Commission rescinded its 1966 guidance concerning the Cambridge Filter Method. 73 Fed. Reg. 74500. The rescission is a response to âa consensus among the public health and scientific communities that the Cambridge Filter method is sufficiently flawed that statements of tar and nicotine yields as measured by that method are not likely to help consumers make informed decisions.â Id., at 74503. The Commissionâs notice of its proposal to rescind the guidance also reiterated the original limits of that guidance, noting that it âonly addressed] simple factual statements of tar and nicotine yields. It d[id] not apply to other conduct or express or implied representations, even if they concerned] tar and nicotine yields.â Id., at 40351.
In short, neither the handful of industry guidances and consent orders on which petitioners rely nor the FTCâs inaction with regard to âlightâ descriptors even arguably justifies the pre-emption of state deceptive practices rules like the MUTPA.
We conclude, as we did in Cipollone, that the Labeling Act does not pre-empt state-law claims like respondentsâ that are predicated on the duty not to deceive. We also hold that the FTCâs various decisions with respect to statements of tar and nicotine content do not impliedly pre-empt respondentsâ claim. Respondents still must prove that petitionersâ use of âlightâ and âlowered tarâ descriptors in fact violated the state deceptive practices statute, but neither the Labeling Actâs pre-emption provision nor the FTCâs actions in this field prevent a jury from considering that claim. Accordingly, the judgment of the Court of Appeals is affirmed, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
The MUTPA provides, as relevant, that â[u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are declared unlawful.â §207. In construing that section, courts are to âbe guided by the interpretations given by the Federal Trade Commission and the Federal Courts to Section 45(a)(1) of the Federal Trade Commission Act (15 United States Code 45(a)(1)), as from time to time amended.â §207(1).
The Cambridge Filter Method weighs and measures the tar and nicotine collected by a smoking machine that takes 35 milliliter puffs of two secondsâ duration every 60 seconds until the cigarette is smoked to a specified butt length. App. 294a, 668a. As discussed below, the Federal Trade Commission (FTC or Commission) signaled in 1966 that the Cambridge Filter Method was an acceptable means of measuring the tar and nicotine content of cigarettes, but it never required manufacturers to publish test results in their advertisements.
79 Stat. 282.
Pub. L. 91-222, 84 Stat. 87. Though actually enacted in 1970, Congress directed that it be cited as a â1969 Act.â
Comprehensive Smoking Education Act, Pub. L. 98-474, §4(a), 98 Stat. 2201,15 U. S. C. § 1333(a).
Petitioners also urge us to find support for their claim that Congress gave the FTC exclusive authority to police deceptive health-related claims in cigarette advertising in what they refer to as the Labeling Actâs âsaving clause.â The clause provides that, apart from the warning requirement, nothing in the Act âshall be construed to limit, restrict, expand, or otherwise affect the authority of the Federal Trade Commission with respect to unfair or deceptive acts or practices in the advertising of cigarettes.â § 1336. A plurality of this Court has previously read this clause to âindicate] that Congress intended the phrase ârelating to smoking and healthâ... to be construed narrowly, so as not to proscribe the regulation of deceptive advertising.â Cipollone v. Liggett Group, Inc., 505 U. S. 504, 528-529 (1992). Nothing in the clause suggests that Congress meant to proscribe the Statesâ historic regulation of deceptive advertising prac
In his dissent, Justice Thomas criticizes our reliance on the plurality opinion in Cipollone, post, at 96-98, 103-108, 111-112, and advocates adopting the analysis set forth by Justice Scalia in his opinion concurring in the judgment in part and dissenting in part in that case, post, at 95-96, 109-110. But Justice Scaliaâs approach was rejected by seven Members of the Court, and in the almost 17 years since Cipollone was decided Congress has done nothing to indicate its approval of that approach. Moreover, Justice Thomas fails to explain why Congress would have intended the result that Justice Scaliaâs approach would produceâ namely, permitting cigarette manufacturers to engage in fraudulent advertising. As a majority of the Court concluded in Cipollone, nothing in the Labeling Actâs language or purpose supports that result.
The Cipollone plurality further stated that the warning neutralization claim was âmerely the converse of a state-law requirement that warnings be included in advertising and promotional materials,â 505 U. S., at 527,
As the Court of Appeals observed, respondentsâ allegations regarding petitionersâ use of the statements âlightâ and âlowered tar and nicotineâ could also support a warning neutralization claim. But respondents did not bring such a claim, and the fact that they could have does not, as petitioners suggest, elevate form over substance. There is nothing new in the recognition that the same conduct might violate multiple proscriptions.
Justice Thomas contends that respondentsâ fraud claim must be pre-empted because â[a] judgment in [their] favor will. .. result in a ârequirementâ that petitioners represent the effects of smoking on health in a particular way in their advertising and promotion of light cigarettes.â Post, at 93. He further asserts that ârespondents seek to require the cigarette manufacturers to provide additional warnings about compensatory behavior, or to prohibit them from selling these products with the âlightâ or âlow-tarâ descriptors.â Post, at 109-110. But this mischaracterizes the relief respondents seek. If respondents prevail at trial, petitioners will be prohibited from selling as âlightâ or âlow tarâ only those cigarettes that are not actually light and do not actually deliver less tar and nicotine. Barring intervening federal regulation, petitioners would remain free to make nonfraudulent use of the âlightâ and âlow-tarâ descriptors.
In implementing the MUTPA, neither the state legislature nor the state attorney general has enacted a set of special rules or guidelines targeted at cigarette advertising. As we noted in Cipollone, it was the threatened enactment of new state warning requirements rather than the enforcement of pre-existing general prohibitions against deceptive practices that prompted congressional action in 1969. 505 U. S., at 515, and n. 11.
Petitioners also point to Morales as evidence that our decision in Cipollone was wrong. But Morales predated Cipollone, and it is in any event even more easily distinguishable from this case than American Airlines, Inc. v. Wolens, 513 U. S. 219 (1995). At issue in Morales were guidelines regarding the form and substance of airline fare advertising implemented by the National Association of Attorneys General to give content to state deceptive practices rules. 504 U. S., at 379. Like the regulations at issue in Reilly, the guidelines were industry-specific directives that targeted the subject matter made off-limits by the ADAâs ex
In a different action, the FTC charged a cigarette manufacturer with violating the FTC Act by misleadingly advertising certain brands as âlow in tarâ even though they had a higher-than-average tar rating. See In re American Brands, Inc., 79 F. T. C. 255 (1971). The Commission and the manufacturer entered a consent order that prevented the manufacturer from making any such representations unless they were accompanied by a clear and conspicuous disclosure of the cigarettesâ tar and nicotine content as measured by the Cambridge Filter Method. Id., at 258. Petitioners offer this consent order as evidence that the FTC authorized the use of âlightâ and âlow tarâ descriptors as long as they accurately describe Cambridge Filter Method test results. As the Government observes, however, the decree only enjoined conduct. Brief for United States as Amicus Curiae 26. And a consent order is in any event only binding on the parties to the agreement. For all of these reasons, the consent order does not support the conclusion that respondentsâ claim is impliedly pre-empted.
It seems particularly inappropriate to read a policy of authorization into the FTCâs inaction when that inaction is in part the result of petitionersâ failure to disclose study results showing that Cambridge Filter Method test results do not reflect the amount of tar and nicotine that consumers of âlightâ cigarettes actually inhale. See id,., at 8-11.