Josh Long, Associate editorial director, Natural Products Insider

March 7, 2013

2 Min Read
Coca-Cola, Minute Maid Must Defend False Advertising Lawsuit

KANSAS CITYA lawsuit that alleges The Coca-Cola Company falsely advertised its orange juice products are natural is not barred by federal law and can proceed with limited discovery, a federal judge in Missouri has ruled.

Fernando J. Gaitan, Jr., Chief U.S. District Judge, denied Coca-Cola's motion to toss the complaint, which includes 13 cases that relate to Simply Orange Juice, Minute Maid Pure Squeezed and Minute Maid Premium.

Coca-Cola, the world's largest beverage company, must continue to defend itself from allegations that its juice products are not natural, rendering false such adverting claims as "100% pure squeezed", "never from concentrate" and "100% orange juice". The combined complaint includes plaintiffs from Alabama, California, Florida, Illinois, Missouri, New Jersey and New York, Bloomberg reported.

In a motion to dismiss the complaint, Coca-Cola argued the plaintiffs' claims were preempted by the Federal Food Drug and Cosmetic Act (FDCA) and separately barred by a doctrine that prevents parties from asking for a ruling from a judge or jury that a practice is deceptive or unlawful if it is expressly permitted by law.

Coca-Cola also declared the lawsuit should be dismissed because the plaintiffs didn't allege they saw the advertisements and didn't suffer "injury in fact". The beverage giant further argued certain statements were protected because they were "indisputably true or non-actionable commercial puffery."

The judge rejected Coca-Cola's arguments. Although he acknowledged federal law preempts states from imposing any requirement for foods subject to a standard of identity that is different from U.S. Food and Drug Administration (FDA) regulations, Gaitan said state requirements are not preempted if they are identical to FDA's standard of identity.

"In this case, the claims which Plaintiffs assert either seek to enforce state laws that impose requirements identical to those imposed by the FDCA and the NLEA [Nutrition Labeling and Education Act] or cover matters not directly within the scope of those laws," the judge wrote. "Accordingly, Plaintiffs' claims are not preempted."

Gaitan rejected the premise that plaintiffs needed to rely on the advertisements in order to bring their claims against Coca-Cola because he said reliance is not necessary "where misrepresentations and false statements are part of an extensive and long-term advertising campaign".

The parties were ordered to submit a joint proposed discovery plan by April 1.

In his order, Gaitan stated discovery was limited to the following: "whether Defendants' products contain synthetic flavors or orange pulp, oil, or essence at levels significantly in excess of those found in raw processed orange juice or otherwise permitted by FDA regulations and whether Defendants add to their not-from-concentrate orange juice products any water-soluble constituents of orange essence."

About the Author(s)

Josh Long

Associate editorial director, Natural Products Insider, Informa Markets Health and Nutrition

Josh Long directs the online news, feature and op-ed coverage at Natural Products Insider, which targets the health and wellness industry. He has been reporting on developments in the dietary supplement industry for over a decade, with a focus on regulatory issues, including at the Food and Drug Administration.

He has moderated and/or presented at industry trade shows, including SupplySide East, SupplySide West, Natural Products Expo West, NBJ Summit and the annual Dietary Supplement Regulatory Summit.

Connect with Josh on LinkedIn and ping him with story ideas at [email protected]

Education and previous experience

Josh majored in journalism and graduated from Arizona State University the same year "Jake the Snake" Plummer led the Sun Devils to the Rose Bowl against the Ohio State Buckeyes. He also holds a J.D. from the University of Wyoming College of Law, was admitted in 2008 to practice law in the state of Colorado and spent a year clerking for a state district court judge.

Over more than a quarter century, he’s written on various topics for newspapers and business-to-business publications – from the Yavapai in Arizona and a controversial plan for a nuclear-waste incinerator in Idaho to nuanced issues, including FDA enforcement of the Dietary Supplement Health and Education Act of 1994 (DSHEA).

Since the late 1990s, his articles have been published in a variety of media, including but not limited to, the Cape Cod Times (in Massachusetts), Sedona Red Rock News (in Arizona), Denver Post (in Colorado), Casper Star-Tribune (in Wyoming), now-defunct Jackson Hole Guide (in Wyoming), Colorado Lawyer (published by the Colorado Bar Association) and Nutrition Business Journal.

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