MEMORANDUM DECISION AND ORDER
SEIBEL, District Judge.
Before the Court is Defendants' Motion to Dismiss Plaintiffs' Consolidated Class Action Complaint pursuant to Fed.R.Civ.P. 12(b)(6). (Doc. 8.)
I. Background
Plaintiffs Brian Fielman, Carmen Collado, Michael Jones, Regina P. Kelly, and Amanda Litschke, as individuals and on behalf of a class consisting of all individuals in the United States who purchased Aquafina bottled water from the date of its introduction through the present, filed a Consolidated and Amended Class Action Complaint
Aquafina. was first introduced in 1994 and gained national distribution with Pepsi in 1997. The label on Aquafina bottled water contains certain graphics, including a cartoon-like blue squiggle that evokes a mountain range, overlaid on a red-orange circle that evokes a rising or setting sun. The front of the label contains the slogan "Pure Water—Perfect Taste" and the product description "Purified Drinking Water." The back of the label contains the ambiguous statement "BOTTLED AT THE SOURCE P.W.S." The label does not indicate the source or state the meaning of "P.W.S.," but Plaintiffs contend it is an abbreviation for "Public Water Supply."
On or about July 27, 2007, Pepsi disclosed that, since its introduction to the market, the water used in Aquafina has been sourced from public drinking supplies. At this time, Pepsi allegedly agreed to re-label Aquafina, to include information clarifying the source of the water, releasing a statement saying: "If this helps to clarify the fact that the water originates from public sources, then it's a reasonable thing to do." (Compl. ¶ 40.) Nevertheless, Plaintiffs contend that since July 27, 2007, Pepsi has continued to sell or permitted the continued selling of Aquafina with the labeling unchanged.
Plaintiffs allege that they were frequent purchasers of Aquafina water in the years prior to the public disclosure, and that they were "shocked and surprised to learn... that the true source of the water in Aquafina [was] tap water and that they had paid a premium price for tap water." (Id. ¶ 8.) Prior to the disclosure, Plaintiffs claim that they believed that "the true source for Aquafina was mountain spring water." (Id. ¶¶ 3-8.) Plaintiffs allege that Defendants intentionally created this "false impression" through its misleading marketing and labeling scheme in order to benefit from the higher prices they could obtain by misrepresenting Aquafina as mountain spring water. In support of this
On June 16, 2008, Defendants filed the present Motion to Dismiss, and a Memorandum of Law in Support of their Motion to Dismiss. (Doc. 9.) Defendants argue that Plaintiffs' claims should be dismissed on the grounds that: (1) Plaintiffs' claims are expressly preempted by Section 403A of the Federal Food, Drug and Cosmetic Act ("FDCA"), 21 U.S.C. § 343-1(a)(1); (2) Plaintiffs' claims are preempted under the doctrine of implied conflict preemption; and (3) Plaintiffs' claims fail to satisfy the pleading requirements of the various state law or common law claims alleged.
Plaintiffs filed a Memorandum of Law in Opposition to Defendants' Motion to Dismiss on August 8, 2008 ("Pls.' Opp'n"). (Doc. 14.) Defendants filed their Reply Memorandum of Law in Support of their Motion to Dismiss on September 26, 2008. (Doc. 18.) Oral argument was held on November 7, 2008.
II. Discussion
A. Preemption
Defendants move to dismiss on the grounds that Plaintiffs' state law claims are preempted by federal law, both explicitly, by the FDCA's express preemption provision, and impliedly, because they conflict with the statutory scheme related to the labeling of purified water. Express preemption is "present when Congress's intent to preempt state law is `explicitly stated in the statute's language.'" Mills v. Giant of Md., LLC, 441 F.Supp.2d 104, 106 (D.D.C.2006) (quoting Jones v. Rath Packing Co., 430 U.S. 519, 525, 97 S.Ct. 1305, 51 L.Ed.2d 604 (1977)). Implied preemption is "applicable `where compliance with both federal and state regulations is a physical impossibility, or where state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.'" Id. (quoting Gade v. Nat'l Solid Wastes Mgmt. Ass'n, 505 U.S. 88, 98, 112 S.Ct. 2374, 120 L.Ed.2d 73 (1992)).
"Preemption is always a matter of congressional intent." Wachovia Bank, N.A. v. Burke, 414 F.3d 305, 314 (2d Cir. 2005) (citing Fid. Fed. Sav. & Loan Ass'n v. de la Cuesta, 458 U.S. 141, 152, 102 S.Ct. 3014, 73 L.Ed.2d 664 (1982)). "Since the existence of preemption turns on Congress's intent, we are to `begin as we do in any exercise of statutory construction[,] with the text of the provision in question, and move on, as need be, to the structure and purpose of the Act in which it occurs.'" McNally v. The Port Auth. of N.Y. & N.J., 414 F.3d 352, 371 (2d Cir. 2005) (alteration in original) (quoting N.Y. State Conference of Blue Cross & Blue Shield Plans v. Travelers Ins. Co., 514 U.S. 645, 655, 115 S.Ct. 1671, 131 L.Ed.2d 695 (1995)). Accordingly, courts apply the following analytical framework in determining Congressional intent to preempt state law:
Id. (internal quotation marks and citations omitted).
1. Express Preemption
In the interest of promoting honesty and fair dealing, Congress has provided the Food and Drug Administration ("FDA") with the power to "promulgate regulations fixing and establishing for any food, under its common or usual name so far as practicable, a reasonable definition and standard of identity." 21 U.S.C. § 341. Here, Defendants' Motion to Dismiss hinges on the "standard of identity" for "purified drinking water" and the express preemption provision of Section 403A of the FDCA, passed as part of the Nutrition Labeling and Education Act of 1990 ("NLEA"), Pub.L. No. 101-535, 104 Stat. 2353. The standard of identity for bottled water establishes definitions for several different types of bottled water, including "purified water," "artesian water," "ground water," "mineral water," and "spring water." 21 C.F.R. § 165.110(a). Purified water is defined as follows:
Id. § 165.110(a)(2)(iv). Section 403A of the FDCA provides that:
21 U.S.C. § 343-1(a)(1) (emphasis added).
Under the FDCA's misbranding provision, a food (including bottled water) purporting to be a food for which a definition and standard of identity has been prescribed is deemed "mislabeled" if: (1) it does not conform with the applicable standard of identity; or (2) its label does not bear the name of the food specified in the definition and standard. 21 U.S.C. § 343(g). The FDCA "does not provide a private right of action." Savalle v. Nestle Waters N. Am., Inc., 289 F.Supp.2d 31, 33 (D.Conn.2003) (citing Merrell Dow Pharm. Inc. v. Thompson, 478 U.S. 804, 812, 106 S.Ct. 3229, 92 L.Ed.2d 650 (1986)). Accordingly, Plaintiffs do not claim misbranding under § 343(g), but instead claim that Defendants are liable under various state consumer protections laws for misleadingly and deceptively suggesting that Aquafina has a mountain source. Plaintiffs argue that their state law claims are not preempted either because: (1) Defendants' alleged labeling misrepresentations "went beyond the FDCA's prescription" (in other words, notwithstanding compliance with the FDCA, Defendants may be held liable under state law for misrepresentations regarding the source of purified water because federal law is silent on the subject) (Pls.' Opp'n 5); or (2) Defendants' alleged labeling misrepresentations did not comply with the FDCA's labeling requirements (in other words, Defendants can be held liable for state law claims that create a private right of action for noncompliance with the FDCA). (Id. 8.)
2. Relevant Law
Section 403A preempts state law "requirement[s]." 21 U.S.C. § 343-1(a)(1). In the context of express preemption provisions, "the term `requirements' ... reaches beyond positive enactments, such as statutes and regulations, to embrace common-law duties." Bates v. Dow Agrosciences L.L.C., 544 U.S. 431, 443, 125 S.Ct. 1788, 161 L.Ed.2d 687 (2005); accord Riegel v. Medtronic, Inc., ___ U.S. ___, 128 S.Ct. 999, 1008, 169 L.Ed.2d 892 (reaffirming that common-law causes of action for negligence and strict liability impose "requirements"). In contrast, an "occurrence that merely motivates an optional decision"—such as the threat of a state law damages remedy for violation of an existing federal requirement—does not itself qualify as a requirement. Bates, 544 U.S. at 443, 448, 125 S.Ct. 1788; see Medtronic, Inc. v. Lohr, 518 U.S. 470, 513, 116 S.Ct. 2240, 135 L.Ed.2d 700 (1996) (O'Connor, J., concurring in part and dissenting in part) ("[T]he threat of a [state law] damages remedy" does not impose a "requirement" where "the requirements imposed on [defendants] under state and federal law do not differ."). In other words, state law causes of action are not preempted where they merely provide a damages remedy for claims premised on a violation of federal law that does not itself provide a private right of action, but are preempted where they impose obligations not imposed by federal law. Riegel, 128 S.Ct. at 1011 (affirming dismissal of claims that medical device violated state law notwithstanding compliance with relevant federal requirements).
Accordingly, the mere fact that Plaintiffs' state law claims threaten private liability that does not exist under the FDCA is not sufficient to bring those claims within the preemptive scope of Section 403A. Rather, preemption under Section 403A requires that state liability be based on a requirement that is "not identical to" the federal requirements. 21 U.S.C. § 343-1(a)(1). Thus I must look to whether the duties imposed by Plaintiffs' state law claims are "identical" to those imposed by the standard of identity for purified drinking water.
In establishing a standard of identity for bottled water, the FDA intended that "the only State requirements that are subject to preemption are those that are affirmatively different from the Federal requirements on matters that are covered by the Section 403A(a) of the [NLEA]." Beverages: Bottled Water, 60 Fed.Reg. 57,076, 57,120 (Nov. 13, 1995). The federal regulation concerning the requirements for State petitions for exemption from Section 403A provides further clarification on the intended scope of express preemption under the FDCA:
21 C.F.R. § 100.1(c)(4)(i)-(ii) (emphasis added). Thus, state law cannot impose obligations beyond, or different from, what federal law requires.
This interpretation is not disturbed by the NLEA's rule of construction concerning the scope of preemption, which provides in relevant part that, "[t]he [NLEA]
The principle that state law cannot impose obligations other than what federal law requires is supported by Bates, 544 U.S. at 452, 125 S.Ct. 1788, in which the Supreme Court, in addressing the narrower express preemption provision of the Federal Insecticide, Fungicide, and Rodenticide Act ("FIFRA"), 7 U.S.C. §§ 136 et seq., held that "competing state labeling standards" creating potential liability under state law are preempted where the manufacturer would not also be held liable under federal law.
Following Bates, the court in Vermont Pure Holdings, Ltd. v. Nestle Waters North America, Inc., followed a similar approach, holding that the plaintiffs claims that the defendant misleadingly marketed Poland Spring water as "spring water"
More recently, in Mills, 441 F.Supp.2d at 106, the court, noting that the "scope of the FDCA's preemption clause is much broader than FIFRA's," id. at 108, which was at issue in Bates, held that the plaintiffs' claims that milk should have a warning label for lactose intolerance were preempted because their proposed warning label "would far exceed" the "carefully delineated list of information" required under the standard of identity for milk labels. Id.
3. Application
In order to resolve this dispute, the Court must first analyze the FDCA's labeling requirements for bottled water meeting the standard of identify for "purified water," and then determine whether Plaintiffs' state law causes of action impose any "requirement ... that is not identical to" those of the FDCA. 21 U.S.C. § 343-1(a)(1). If it is determined that Plaintiffs' state law causes of action "impose[ ] a broader obligation than [federal law]," then they are preempted. Bates, 544 U.S. at 453, 125 S.Ct. 1788.
What is commonly referred to as "tap water" is known in FDCA terminology as a "community water system" and defined as "a public water system which serves at least 15 service connections used by yearround residents or regularly serves at least 25 year-round residents." 40 C.F.R. § 141.2. The parties agree that although bottled water originating from a community water system generally must be labeled "from a community water system" or "from a municipal source," the applicable standard of identity explicitly exempts from this source disclosure requirement water meeting the definition of purified drinking water. 21 C.F.R. § 165.110(a)(3)(ii). Nevertheless, Plaintiffs contend that Defendants may be held liable under state law for failing to disclose the source of Aquafina water because: (1) the FDCA is silent on whether the exemption
Prior to the enactment of the current standard of identity for the various types of bottled water products, all such products, with the exception of "mineral water" and "soda water," were known as "bottled water," and were subject to the same quality standards as set forth by the Environmental Protection Agency in its general requirements for drinking water. Beverages: Bottled Water, 58 Fed.Reg. 393, 393 (Jan. 5, 1993). On January 20, 1988, the International Bottled Water Association submitted a petition requesting that the FDA revise the standards of quality for bottled water to include mineral water and more closely regulate the labeling, production, and distribution of bottled water by providing definitions for "artesian water," "distilled water," "mineral water," "purified water," "spring water," and "well water." Id. at 394. On January 6, 1989, the FDA published a final rule in which it commented that it "d[id] not believe it necessary to include definitions for bottled waters from various water sources and produced by different treatments in the standard of quality for bottled water" because the existing statutory authority was deemed "sufficient to provide for regulatory action in instances where false and misleading statements concerning the source or treatment of bottled water [were] made...." Id. (quoting Nonalcoholic Beverages: Repeal of Soda Water Standard of Identity; Amendment of Bottled Water Quality Standard, 54 Fed.Reg. 398 (Jan. 6, 1989)).
The FDA reversed its position on January 5, 1993, announcing its intent to move the definition for bottled water from the existing quality standard to a standard of identity including definitions for the various types of bottled water in order to address, among other concerns, the bottled water industry's stated "need for uniform labeling standards to prevent or eliminate inconsistent State labeling requirements." Id. at 395. In discussing the justifications for the proposed rule, the FDA noted the potential for misleading source representations made or implied by bottled water product labeling:
Id.
Later in the same proposed rule, however, the FDA described, in consecutive paragraphs, the justification for the proposed "municipal water supply" source disclosure requirement and the reasoning behind the proposed exemption to that requirement for purified water:
Id. at 399 (emphasis added).
After soliciting feedback on its proposed rule and receiving approximately 430 responses over the course of a six-month comment period from various trade and retail associations, government organizations, manufacturers, consumers, healthcare professionals, retailers, consumer groups, State groups, private organizations, the U.S. Congress, professional societies, and universities, the FDA published its final rule on bottled water on November 13, 1995. Beverages: Bottled Water, 60 Fed.Reg. 57,076 (Nov. 13, 1995). Responding to a comment stating that "it would be misleading if a country setting is shown on the label, including lakes or ponds, and the product is drinking water processed from municipal supplies via reverse osmosis systems [i.e., purified water]," the FDA responded:
Id. at 57,104 (emphasis added).
In sum, the FDA never intended or required that purified water include the "municipal water supply" disclosure required for certain other types of water, including spring water, and 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.
Plaintiffs' rely heavily on Vermont Pure in their attempt to persuade the Court that their state law claims are not preempted. This reliance on that case, which is not binding in any event, is misplaced for multiple reasons:
First, unlike the source location claims at issue in Vermont Pure, Plaintiffs' state law claims alleging that Defendants' misrepresented the source of Aquafina water impose requirements that are not identical to the applicable standard of identity. In Vermont Pure, the court correctly held that Vermont Pure's state law claims regarding Nestle's alleged misrepresentations of the source of the "spring water" at issue could only survive preemption to the extent that they adopted the FDA definition of spring water. 2006 WL 839486, at *7, 2006 U.S. Dist. LEXIS 13683, at *22. Indeed, the FDA standard of identity imposes detailed requirements on the use of the "spring water" nomenclature, including "the location of the spring." 21 C.F.R.
Second, unlike the "purity" claims regarding the "spring water" at issue in Vermont Pure, which the court concluded were unaddressed by federal law, the federal standard of identity for "purified water" explicitly regulates purity requirements. Id. § 165.110(a)(2)(iv). Thus, the "purity" field is not open as to purified water, as the Vermont Pure court held it was as to spring water. Here, Plaintiffs claim that Defendants' use of the term "pure" in the Aquafina labeling slogan "Pure Water—Perfect Taste" is misleading to consumers because, when viewed in connection with the graphics on the label, it "results in misleading consumers into believing the source of the water is springs from snow-capped mountains, as opposed to public tap water." (Pls.' Opp'n 10.) This argument fails to appreciate that although the FDA has "discouraged" the use of the term "pure," it did so out of concern that consumers may be misled into believing that bottled water labeled as "pure" meets the processing standards required by the standard of identity for purified water. Beverages: Bottled Water, 60 Fed.Reg. 57,076, 57,099. Consumers cannot be misled in that fashion here, because Aquafina is purified water. In any event, Plaintiffs do not quarrel with the purity of Aquafina. (Pls.' Opp'n 6.) Their focus on purity here is merely an attempt to re-cast their source argument, but the attempt is unavailing because: (1) the term "pure" has no source-specific meaning; and (2) source claims are, as discussed above, expressly preempted.
Finally, I reject Plaintiffs' reading of Vermont Pure to stand for the principle that state requirements are permitted as long as the federal standard does not specifically address the terms or images at issue. Where federal requirements address the subject matter that is being challenged through state law claims, such state law claims are preempted to the extent they do not impose identical requirements. Thus, although the standard of identity does not define the term "pure" or specify when it is permissible to place a cartoonlike image of a mountain range on a purified water label, the FDA considered misrepresentations regarding source and chose to regulate the labeling requirements for the disclosure of source information, and in so doing it determined that purified water should be exempted. Accordingly, any state law claims premised on a misrepresentation about the source of purified water are preempted.
In essence, Plaintiffs would have me construe the term "not identical to" in Section 403A as permitting state requirements that go beyond federal law as long
In light of the above, I need not address Defendants' arguments that Plaintiffs' claims are impliedly preempted or that the Complaint fails to meet the pleading requirements of various state laws under which they assert causes of action.
III. Conclusion
It is hereby
The Clerk of Court is respectfully directed to determine the pending motion (Doc. 8), and close the classes.
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