POM Wonderful LLC v. Coca-Cola Co. , 134 S. Ct. 2228 ( 2014 )


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  • (Slip Opinion)              OCTOBER TERM, 2013                                       1
    Syllabus
    NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
    being done in connection with this case, at the time the opinion is issued.
    The syllabus constitutes no part of the opinion of the Court but has been
    prepared by the Reporter of Decisions for the convenience of the reader.
    See United States v. Detroit Timber & Lumber Co., 
    200 U. S. 321
    , 337.
    SUPREME COURT OF THE UNITED STATES
    Syllabus
    POM WONDERFUL LLC v. COCA-COLA CO.
    CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR
    THE NINTH CIRCUIT
    No. 12–761.      Argued April 21, 2014—Decided June 12, 2014
    This case involves the intersection of two federal statutes. The Lanham
    Act permits one competitor to sue another for unfair competition aris-
    ing from false or misleading product descriptions. 
    15 U. S. C. §1125
    .
    The Federal Food, Drug, and Cosmetic Act (FDCA) prohibits the mis-
    branding of food and drink. 
    21 U. S. C. §§321
    (f), 331. To implement
    the FDCA’s provisions, the Food and Drug Administration (FDA) has
    promulgated regulations regarding food and beverage labeling, in-
    cluding one concerning juice blends. Unlike the Lanham Act, which,
    relies in large part for its enforcement on private suits brought by in-
    jured competitors, the FDCA and its regulations give the United
    States nearly exclusive enforcement authority and do not permit pri-
    vate enforcement suits. The FDCA also pre-empts certain state mis-
    branding laws.
    Petitioner POM Wonderful LLC, which produces, markets, and
    sells, inter alia, a pomegranate-blueberry juice blend, filed a Lanham
    Act suit against respondent Coca-Cola Company, alleging that the
    name, label, marketing, and advertising of one of Coca-Cola’s juice
    blends mislead consumers into believing the product consists predom-
    inantly of pomegranate and blueberry juice when it in fact consists
    predominantly of less expensive apple and grape juices, and that the
    ensuing confusion causes POM to lose sales. The District Court
    granted partial summary judgment to Coca-Cola, ruling that the
    FDCA and its regulations preclude Lanham Act challenges to the
    name and label of Coca-Cola’s juice blend. The Ninth Circuit af-
    firmed in relevant part.
    Held: Competitors may bring Lanham Act claims like POM’s challeng-
    ing food and beverage labels regulated by the FDCA. Pp. 7–17.
    (a) This result is based on the following premises. First, this is not
    2             POM WONDERFUL LLC v. COCA-COLA CO.
    Syllabus
    a pre-emption case, for it does not raise the question whether state
    law is pre-empted by a federal law, see Wyeth v. Levine, 
    555 U. S. 555
    , 563, but instead concerns the alleged preclusion of a cause of ac-
    tion under one federal statute by the provisions of another federal
    statute. Pre-emption principles may nonetheless be instructive inso-
    far as they are designed to assess the interaction of laws bearing on
    the same subject. Second, this is a statutory interpretation case; and
    analysis of the statutory text, aided by established interpretation
    rules, controls. See Chickasaw Nation v. United States, 
    534 U. S. 84
    ,
    94. While a principle of interpretation may be countered “by some
    maxim pointing in a different direction,” Circuit City Stores, Inc. v.
    Adams, 
    532 U. S. 105
    , 115, this Court need not decide what maxim
    establishes the proper framework here: Even assuming that Coca-
    Cola is correct that the Court’s task is to reconcile or harmonize the
    statutes instead of to determine whether one statute is an implied
    repeal in part of another statute, Coca-Cola is incorrect that the best
    way to do that is to bar POM’s Lanham Act claim. Pp. 7–9.
    (b) Neither the Lanham Act nor the FDCA, in express terms, for-
    bids or limits Lanham Act claims challenging labels that are regulat-
    ed by the FDCA. The absence of such a textual provision when the
    Lanham Act and the FDCA have coexisted for over 70 years is “pow-
    erful evidence that Congress did not intend FDA oversight to be the
    exclusive means” of ensuring proper food and beverage labeling. See
    Wyeth, 
    supra, at 575
    . In addition, and contrary to Coca-Cola’s argu-
    ment, Congress, by taking care to pre-empt only some state laws, if
    anything indicated it did not intend the FDCA to preclude require-
    ments arising from other sources. See Setser v. United States, 566
    U. S. ___, ___. The structures of the FDCA and the Lanham Act rein-
    force this conclusion. Where two statutes are complementary, it
    would show disregard for the congressional design to hold that Con-
    gress intended one federal statute nonetheless to preclude the opera-
    tion of the other. See J. E. M. Ag Supply, Inc. v. Pioneer Hi-Bred
    Int’l, Inc., 
    534 U. S. 124
    , 144. The Lanham Act and the FDCA com-
    plement each other in major respects, for each has its own scope and
    purpose. Both touch on food and beverage labeling, but the Lanham
    Act protects commercial interests against unfair competition, while
    the FDCA protects public health and safety. They also complement
    each other with respect to remedies. The FDCA’s enforcement is
    largely committed to the FDA, while the Lanham Act empowers pri-
    vate parties to sue competitors to protect their interests on a case-by-
    case basis. Allowing Lanham Act suits takes advantage of synergies
    among multiple methods of regulation. A holding that the FDCA
    precludes Lanham Act claims challenging food and beverage labels
    also could lead to a result that Congress likely did not intend. Be-
    Cite as: 573 U. S. ____ (2014)                     3
    Syllabus
    cause the FDA does not necessarily pursue enforcement measures re-
    garding all objectionable labels, preclusion of Lanham Act claims
    could leave commercial interests—and indirectly the public at large—
    with less effective protection in the food and beverage labeling realm
    than in other less regulated industries. Pp. 9–12.
    (c) Coca-Cola’s arguments do not support its claim that preclusion
    is proper because Congress intended national uniformity in food and
    beverage labeling. First, the FDCA’s delegation of enforcement au-
    thority to the Federal Government does not indicate that Congress
    intended to foreclose private enforcement of other federal statutes.
    Second, the FDCA’s express pre-emption provision applies by its
    terms to state, not federal, law. Even if it were proper to stray from
    that text, it not clear that Coca-Cola’s national uniformity assertions
    reflect the congressional design. Finally, the FDCA and its imple-
    menting regulations may address food and beverage labeling with
    more specificity than the Lanham Act, but this specificity would mat-
    ter only if the two Acts cannot be implemented in full at the same
    time. Here, neither the statutory structure nor the empirical evi-
    dence of which the Court is aware indicates there will be any difficul-
    ty in fully enforcing each statute according to its terms. Pp. 13–15.
    (d) The Government’s intermediate position—that a Lanham Act
    claim is precluded “to the extent the FDCA or FDA regulations spe-
    cifically require or authorize the challenged aspects of [the] label,”
    and that this rule precludes POM’s challenge to the name of Coca-
    Cola’s product—is flawed, for the Government assumes that the
    FDCA and its regulations are a ceiling on the regulation of food and
    beverage labeling when Congress intended the Lanham Act and the
    FDCA to complement each other with respect to labeling. Though
    the FDA’s rulemaking alludes at one point to a balance of interests, it
    neither discusses nor cites the Lanham Act; and the Government
    points to no other statement suggesting that the FDA considered the
    full scope of interests protected by the Lanham Act. Even if agency
    regulations with the force of law that purport to bar other legal rem-
    edies may do so, it is a bridge too far to accept an agency’s after-the-
    fact statement to justify that result here. An agency may not reorder
    federal statutory rights without congressional authorization. Pp. 15–
    17.
    
    679 F. 3d 1170
    , reversed and remanded.
    KENNEDY, J., delivered the opinion of the Court, in which all other
    Members joined, except BREYER, J., who took no part in the considera-
    tion or decision of the case.
    Cite as: 573 U. S. ____ (2014)                              1
    Opinion of the Court
    NOTICE: This opinion is subject to formal revision before publication in the
    preliminary print of the United States Reports. Readers are requested to
    notify the Reporter of Decisions, Supreme Court of the United States, Wash-
    ington, D. C. 20543, of any typographical or other formal errors, in order
    that corrections may be made before the preliminary print goes to press.
    SUPREME COURT OF THE UNITED STATES
    _________________
    No. 12–761
    _________________
    POM WONDERFUL LLC, PETITIONER v. THE
    COCA-COLA COMPANY
    ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF
    APPEALS FOR THE NINTH CIRCUIT
    [June 12, 2014]
    JUSTICE KENNEDY delivered the opinion of the Court.
    POM Wonderful LLC makes and sells pomegranate
    juice products, including a pomegranate-blueberry juice
    blend. App. 23a. One of POM’s competitors is the Coca-
    Cola Company. Coca-Cola’s Minute Maid Division makes
    a juice blend sold with a label that, in describing the con-
    tents, displays the words “pomegranate blueberry” with
    far more prominence than other words on the label that
    show the juice to be a blend of five juices. In truth, the
    Coca-Cola product contains but 0.3% pomegranate juice
    and 0.2% blueberry juice.
    Alleging that the use of that label is deceptive and
    misleading, POM sued Coca-Cola under §43 of the Lan-
    ham Act. 
    60 Stat. 441
    , as amended, 
    15 U. S. C. §1125
    .
    That provision allows one competitor to sue another if it
    alleges unfair competition arising from false or misleading
    product descriptions. The Court of Appeals for the Ninth
    Circuit held that, in the realm of labeling for food and
    beverages, a Lanham Act claim like POM’s is precluded by
    a second federal statute. The second statute is the Federal
    Food, Drug, and Cosmetic Act (FDCA), which forbids the
    2         POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    misbranding of food, including by means of false or mis-
    leading labeling. §§301, 403, 
    52 Stat. 1042
    , 1047, as
    amended, 
    21 U. S. C. §§331
    , 343.
    The ruling that POM’s Lanham Act cause of action is
    precluded by the FDCA was incorrect. There is no statu-
    tory text or established interpretive principle to support
    the contention that the FDCA precludes Lanham Act suits
    like the one brought by POM in this case. Nothing in the
    text, history, or structure of the FDCA or the Lanham Act
    shows the congressional purpose or design to forbid these
    suits. Quite to the contrary, the FDCA and the Lanham
    Act complement each other in the federal regulation of
    misleading food and beverage labels. Competitors, in their
    own interest, may bring Lanham Act claims like POM’s
    that challenge food and beverage labels that are regulated
    by the FDCA.
    I
    A
    This case concerns the intersection and complementar-
    ity of these two federal laws. A proper beginning point is a
    description of the statutes.
    Congress enacted the Lanham Act nearly seven decades
    ago. See 
    60 Stat. 427
     (1946). As the Court explained
    earlier this Term, it “requires no guesswork” to ascertain
    Congress’ intent regarding this federal law, for Congress
    included a “detailed statement of the statute’s purposes.”
    Lexmark Int’l, Inc. v. Static Control Components, Inc., 572
    U. S. ___, ___ (2014) (slip op., at 12). Section 45 of the
    Lanham Act provides:
    “The intent of this chapter is to regulate commerce
    within the control of Congress by making actionable
    the deceptive and misleading use of marks in such
    commerce; to protect registered marks used in such
    commerce from interference by State, or territorial
    legislation; to protect persons engaged in such com-
    Cite as: 573 U. S. ____ (2014)            3
    Opinion of the Court
    merce against unfair competition; to prevent fraud
    and deception in such commerce by the use of repro-
    ductions, copies, counterfeits, or colorable imitations
    of registered marks; and to provide rights and reme-
    dies stipulated by treaties and conventions respecting
    trademarks, trade names, and unfair competition en-
    tered into between the United States and foreign na-
    tions.” 
    15 U. S. C. §1127
    .
    The Lanham Act’s trademark provisions are the primary
    means of achieving these ends. But the Act also creates a
    federal remedy “that goes beyond trademark protection.”
    Dastar Corp. v. Twentieth Century Fox Film Corp., 
    539 U. S. 23
    , 29 (2003). The broader remedy is at issue here.
    The Lanham Act creates a cause of action for unfair
    competition through misleading advertising or labeling.
    Though in the end consumers also benefit from the Act’s
    proper enforcement, the cause of action is for competitors,
    not consumers.
    The term “competitor” is used in this opinion to indicate
    all those within the class of persons and entities protected
    by the Lanham Act. Competitors are within the class that
    may invoke the Lanham Act because they may suffer “an
    injury to a commercial interest in sales or business repu-
    tation proximately caused by [a] defendant’s misrepresen-
    tations.” Lexmark, supra, at ___ (slip op., at 22). The
    petitioner here asserts injury as a competitor.
    The cause of action the Act creates imposes civil liability
    on any person who “uses in commerce any word, term,
    name, symbol, or device, or any combination thereof, or
    any false designation of origin, false or misleading descrip-
    tion of fact, or false or misleading representation of fact,
    which . . . misrepresents the nature, characteristics, quali-
    ties, or geographic origin of his or her or another person’s
    goods, services, or commercial activities.” 
    15 U. S. C. §1125
    (a)(1). As the Court held this Term, the private
    4         POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    remedy may be invoked only by those who “allege an
    injury to a commercial interest in reputation or sales. A
    consumer who is hoodwinked into purchasing a disap-
    pointing product may well have an injury-in-fact cogniza-
    ble under Article III, but he cannot invoke the protection
    of the Lanham Act.” Lexmark, 572 U. S., at ___ (slip op.,
    at 13). This principle reflects the Lanham Act’s purpose of
    “ ‘protect[ing] persons engaged in [commerce within the
    control of Congress] against unfair competition.’ ” 
    Id.,
     at
    ___ (slip op., at 12). POM’s cause of action would be
    straightforward enough but for Coca-Cola’s contention
    that a separate federal statutory regime, the FDCA, al-
    lows it to use the label in question and in fact precludes
    the Lanham Act claim.
    So the FDCA is the second statute to be discussed. The
    FDCA statutory regime is designed primarily to protect
    the health and safety of the public at large. See 62 Cases
    of Jam v. United States, 
    340 U. S. 593
    , 596 (1951); FDCA,
    §401, 
    52 Stat. 1046
    , 
    21 U. S. C. §341
     (agency may issue
    certain regulations to “promote honesty and fair dealing in
    the interest of consumers”). The FDCA prohibits the
    misbranding of food and drink. 
    21 U. S. C. §§321
    (f), 331.
    A food or drink is deemed misbranded if, inter alia, “its
    labeling is false or misleading,” §343(a), information re-
    quired to appear on its label “is not prominently placed
    thereon,” §343(f), or a label does not bear “the common or
    usual name of the food, if any there be,” §343(i). To im-
    plement these provisions, the Food and Drug Administra-
    tion (FDA) promulgated regulations regarding food and
    beverage labeling, including the labeling of mixes of dif-
    ferent types of juice into one juice blend. See 
    21 CFR §102.33
     (2013). One provision of those regulations is
    particularly relevant to this case: If a juice blend does not
    name all the juices it contains and mentions only juices
    that are not predominant in the blend, then it must either
    declare the percentage content of the named juice or
    Cite as: 573 U. S. ____ (2014)            5
    Opinion of the Court
    “[i]ndicate that the named juice is present as a flavor or
    flavoring,” e.g., “raspberry and cranberry flavored juice
    drink.” §102.33(d). The Government represents that the
    FDA does not preapprove juice labels under these regula-
    tions. See Brief for United States as Amicus Curiae in
    Opposition 16. That contrasts with the FDA’s regulation
    of other types of labels, such as drug labels, see 
    21 U. S. C. §355
    (d), and is consistent with the less extensive role the
    FDA plays in the regulation of food than in the regulation
    of drugs.
    Unlike the Lanham Act, which relies in substantial part
    for its enforcement on private suits brought by injured
    competitors, the FDCA and its regulations provide the
    United States with nearly exclusive enforcement author-
    ity, including the authority to seek criminal sanctions in
    some circumstances. 
    21 U. S. C. §§333
    (a), 337. Private
    parties may not bring enforcement suits. §337. Also
    unlike the Lanham Act, the FDCA contains a provision
    pre-empting certain state laws on misbranding. That
    provision, which Congress added to the FDCA in the
    Nutrition Labeling and Education Act of 1990, §6, 
    104 Stat. 2362
    –2364, forecloses a “State or political subdivi-
    sion of a State” from establishing requirements that are of
    the type but “not identical to” the requirements in some of
    the misbranding provisions of the FDCA. 
    21 U. S. C. §343
    –1(a). It does not address, or refer to, other federal
    statutes or the preclusion thereof.
    B
    POM Wonderful LLC is a grower of pomegranates and
    a distributor of pomegranate juices. Through its POM
    Wonderful brand, POM produces, markets, and sells a
    variety of pomegranate products, including a pomegranate-
    blueberry juice blend. App. 23a.
    POM competes in the pomegranate-blueberry juice
    market with the Coca-Cola Company. Coca-Cola, under
    6         POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    its Minute Maid brand, created a juice blend containing
    99.4% apple and grape juices, 0.3% pomegranate juice,
    0.2% blueberry juice, and 0.1% raspberry juice. 
    Id.,
     at
    38a; Brief for Respondent 8. Despite the minuscule
    amount of pomegranate and blueberry juices in the blend,
    the front label of the Coca-Cola product displays the words
    “pomegranate blueberry” in all capital letters, on two
    separate lines. App. 38a. Below those words, Coca-Cola
    placed the phrase “flavored blend of 5 juices” in much
    smaller type. 
    Ibid.
     And below that phrase, in still smaller
    type, were the words “from concentrate with added ingre-
    dients”—and, with a line break before the final phrase—
    “and other natural flavors.” 
    Ibid.
     The product’s front
    label also displays a vignette of blueberries, grapes, and
    raspberries in front of a halved pomegranate and a halved
    apple. 
    Ibid.
    Claiming that Coca-Cola’s label tricks and deceives
    consumers, all to POM’s injury as a competitor, POM
    brought suit under the Lanham Act. POM alleged that
    the name, label, marketing, and advertising of Coca-Cola’s
    juice blend mislead consumers into believing the product
    consists predominantly of pomegranate and blueberry
    juice when it in fact consists predominantly of less expen-
    sive apple and grape juices. 
    Id.,
     at 27a. That confusion,
    POM complained, causes it to lose sales. 
    Id.,
     at 28a. POM
    sought damages and injunctive relief. 
    Id.,
     at 32a–33a.
    The District Court granted partial summary judgment
    to Coca-Cola on POM’s Lanham Act claim, ruling that the
    FDCA and its regulations preclude challenges to the name
    and label of Coca-Cola’s juice blend. The District Court
    reasoned that in the juice blend regulations the “FDA has
    directly spoken on the issues that form the basis of Pom’s
    Lanham Act claim against the naming and labeling of ”
    Coca-Cola’s product, but has not prohibited any, and
    indeed expressly has permitted some, aspects of Coca-
    Cola’s label. 
    727 F. Supp. 2d 849
    , 871–873 (CD Cal. 2010).
    Cite as: 573 U. S. ____ (2014)           7
    Opinion of the Court
    The Court of Appeals for the Ninth Circuit affirmed in
    relevant part. Like the District Court, the Court of Ap-
    peals reasoned that Congress decided “to entrust matters
    of juice beverage labeling to the FDA”; the FDA has prom-
    ulgated “comprehensive regulation of that labeling”; and
    the FDA “apparently” has not imposed the requirements
    on Coca-Cola’s label that are sought by POM. 
    679 F. 3d 1170
    , 1178 (2012). “[U]nder [Circuit] precedent,” the
    Court of Appeals explained, “for a court to act when the
    FDA has not—despite regulating extensively in this area—
    would risk undercutting the FDA’s expert judgments and
    authority.” 
    Id., at 1177
    . For these reasons, and “[o]ut
    of respect for the statutory and regulatory scheme,” the
    Court of Appeals barred POM’s Lanham Act claim. 
    Id., at 1178
    .
    II
    A
    This Court granted certiorari to consider whether a
    private party may bring a Lanham Act claim challenging a
    food label that is regulated by the FDCA. 571 U. S. ___
    (2014). The answer to that question is based on the fol-
    lowing premises.
    First, this is not a pre-emption case. In pre-emption
    cases, the question is whether state law is pre-empted by a
    federal statute, or in some instances, a federal agency
    action. See Wyeth v. Levine, 
    555 U. S. 555
    , 563 (2009).
    This case, however, concerns the alleged preclusion of a
    cause of action under one federal statute by the provisions
    of another federal statute. So the state-federal balance
    does not frame the inquiry. Because this is a preclusion
    case, any “presumption against pre-emption,” 
    id., at 565, n. 3
    , has no force. In addition, the preclusion analysis is
    not governed by the Court’s complex categorization of the
    types of pre-emption. See Crosby v. National Foreign
    Trade Council, 
    530 U. S. 363
    , 372–373 (2000). Although
    8         POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    the Court’s pre-emption precedent does not govern preclu-
    sion analysis in this case, its principles are instructive
    insofar as they are designed to assess the interaction of
    laws that bear on the same subject.
    Second, this is a statutory interpretation case and the
    Court relies on traditional rules of statutory interpreta-
    tion. That does not change because the case involves
    multiple federal statutes. See FDA v. Brown & William-
    son Tobacco Corp., 
    529 U. S. 120
    , 137–139 (2000). Nor
    does it change because an agency is involved. See 
    ibid.
    Analysis of the statutory text, aided by established princi-
    ples of interpretation, controls. See Chickasaw Nation v.
    United States, 
    534 U. S. 84
    , 94 (2001).
    A principle of interpretation is “often countered, of
    course, by some maxim pointing in a different direction.”
    Circuit City Stores, Inc. v. Adams, 
    532 U. S. 105
    , 115
    (2001). It is thus unsurprising that in this case a thresh-
    old dispute has arisen as to which of two competing max-
    ims establishes the proper framework for decision. POM
    argues that this case concerns whether one statute, the
    FDCA as amended, is an “implied repeal” in part of an-
    other statute, i.e., the Lanham Act. See, e.g., Carcieri v.
    Salazar, 
    555 U. S. 379
    , 395 (2009). POM contends that in
    such cases courts must give full effect to both statutes
    unless they are in “irreconcilable conflict,” see ibid., and
    that this high standard is not satisfied here. Coca-Cola
    resists this canon and its high standard. Coca-Cola argues
    that the case concerns whether a more specific law, the
    FDCA, clarifies or narrows the scope of a more general
    law, the Lanham Act. See, e.g., United States v. Fausto,
    
    484 U. S. 439
    , 453 (1988); Brief for Respondent 18. The
    Court’s task, it claims, is to “reconcil[e]” the laws, ibid.,
    and it says the best reconciliation is that the more specific
    provisions of the FDCA bar certain causes of action au-
    thorized in a general manner by the Lanham Act.
    The Court does not need to resolve this dispute. Even
    Cite as: 573 U. S. ____ (2014)           9
    Opinion of the Court
    assuming that Coca-Cola is correct that the Court’s task is
    to reconcile or harmonize the statutes and not, as POM
    urges, to enforce both statutes in full unless there is a
    genuinely irreconcilable conflict, Coca-Cola is incorrect
    that the best way to harmonize the statutes is to bar
    POM’s Lanham Act claim.
    B
    Beginning with the text of the two statutes, it must be
    observed that neither the Lanham Act nor the FDCA, in
    express terms, forbids or limits Lanham Act claims chal-
    lenging labels that are regulated by the FDCA. By its
    terms, the Lanham Act subjects to suit any person who
    “misrepresents the nature, characteristics, qualities, or
    geographic origin” of goods or services.       
    15 U. S. C. §1125
    (a). This comprehensive imposition of liability ex-
    tends, by its own terms, to misrepresentations on labels,
    including food and beverage labels. No other provision in
    the Lanham Act limits that understanding or purports to
    govern the relevant interaction between the Lanham Act
    and the FDCA. And the FDCA, by its terms, does not
    preclude Lanham Act suits. In consequence, food and
    beverage labels regulated by the FDCA are not, under the
    terms of either statute, off limits to Lanham Act claims.
    No textual provision in either statute discloses a purpose
    to bar unfair competition claims like POM’s.
    This absence is of special significance because the Lan-
    ham Act and the FDCA have coexisted since the passage
    of the Lanham Act in 1946. 
    60 Stat. 427
     (1946); ch. 675,
    
    52 Stat. 1040
     (1938). If Congress had concluded, in light
    of experience, that Lanham Act suits could interfere with
    the FDCA, it might well have enacted a provision address-
    ing the issue during these 70 years. See Wyeth, 
    supra, at 574
     (“If Congress thought state-law suits posed an obsta-
    cle to its objectives, it surely would have enacted an ex-
    press pre-emption provision at some point during the
    10        POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    FDCA’s 70-year history”). Congress enacted amendments
    to the FDCA and the Lanham Act, see, e.g., Nutrition
    Labeling and Education Act of 1990, 
    104 Stat. 2353
    ;
    Trademark Law Revision Act of 1988, §132, 
    102 Stat. 3946
    , including an amendment that added to the FDCA an
    express pre-emption provision with respect to state laws
    addressing food and beverage misbranding, §6, 
    104 Stat. 2362
    . Yet Congress did not enact a provision addressing
    the preclusion of other federal laws that might bear on
    food and beverage labeling. This is “powerful evidence
    that Congress did not intend FDA oversight to be the
    exclusive means” of ensuring proper food and beverage
    labeling. See Wyeth, 
    555 U. S., at 575
    .
    Perhaps the closest the statutes come to addressing the
    preclusion of the Lanham Act claim at issue here is the
    pre-emption provision added to the FDCA in 1990 as part
    of the Nutrition Labeling and Education Act. See 
    21 U. S. C. §343
    –1. But, far from expressly precluding suits
    arising under other federal laws, the provision if anything
    suggests that Lanham Act suits are not precluded.
    This pre-emption provision forbids a “State or political
    subdivision of a State” from imposing requirements that
    are of the type but “not identical to” corresponding FDCA
    requirements for food and beverage labeling. 
    Ibid.
     It is
    significant that the complex pre-emption provision distin-
    guishes among different FDCA requirements. It forbids
    state-law requirements that are of the type but not identi-
    cal to only certain FDCA provisions with respect to food
    and beverage labeling. See §§343–1(a)(1)–(5) (citing some
    but not all of the subsections of §343); §6, 
    104 Stat. 2362
    –
    2364 (codified at 
    21 U. S. C. §343
    –1, and note following).
    Just as significant, the provision does not refer to re-
    quirements imposed by other sources of law, such as fed-
    eral statutes. For purposes of deciding whether the FDCA
    displaces a regulatory or liability scheme in another stat-
    ute, it makes a substantial difference whether that other
    Cite as: 573 U. S. ____ (2014)           11
    Opinion of the Court
    statute is state or federal. By taking care to mandate
    express pre-emption of some state laws, Congress if any-
    thing indicated it did not intend the FDCA to preclude
    requirements arising from other sources. See Setser v.
    United States, 566 U. S. ___, ___ (2012) (slip op., at 6–7)
    (applying principle of expressio unius est exclusio alterius).
    Pre-emption of some state requirements does not suggest
    an intent to preclude federal claims.
    The structures of the FDCA and the Lanham Act rein-
    force the conclusion drawn from the text. When two stat-
    utes complement each other, it would show disregard for
    the congressional design to hold that Congress nonethe-
    less intended one federal statute to preclude the operation
    of the other. See J. E. M. Ag Supply, Inc. v. Pioneer Hi-
    Bred Int’l, Inc., 
    534 U. S. 124
    , 144 (2001) (“[W]e can plainly
    regard each statute as effective because of its different
    requirements and protections”); see also Wyeth, 
    supra,
     at
    578–579. The Lanham Act and the FDCA complement
    each other in major respects, for each has its own scope
    and purpose. Although both statutes touch on food and
    beverage labeling, the Lanham Act protects commercial
    interests against unfair competition, while the FDCA
    protects public health and safety. Compare Lexmark, 572
    U. S., at ___ (slip op., at 12–13), with 62 Cases of Jam, 
    340 U. S., at 596
    . The two statutes impose “different require-
    ments and protections.” J. E. M. Ag Supply, 
    supra, at 144
    .
    The two statutes complement each other with respect to
    remedies in a more fundamental respect. Enforcement of
    the FDCA and the detailed prescriptions of its implement-
    ing regulations is largely committed to the FDA. The
    FDA, however, does not have the same perspective or
    expertise in assessing market dynamics that day-to-day
    competitors possess. Competitors who manufacture or
    distribute products have detailed knowledge regarding
    how consumers rely upon certain sales and marketing
    strategies. Their awareness of unfair competition prac-
    12        POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    tices may be far more immediate and accurate than that of
    agency rulemakers and regulators. Lanham Act suits
    draw upon this market expertise by empowering private
    parties to sue competitors to protect their interests on a
    case-by-case basis. By “serv[ing] a distinct compensatory
    function that may motivate injured persons to come for-
    ward,” Lanham Act suits, to the extent they touch on the
    same subject matter as the FDCA, “provide incentives” for
    manufacturers to behave well. See id., at 579. Allowing
    Lanham Act suits takes advantage of synergies among
    multiple methods of regulation. This is quite consistent
    with the congressional design to enact two different stat-
    utes, each with its own mechanisms to enhance the protec-
    tion of competitors and consumers.
    A holding that the FDCA precludes Lanham Act claims
    challenging food and beverage labels would not only ignore
    the distinct functional aspects of the FDCA and the Lan-
    ham Act but also would lead to a result that Congress
    likely did not intend. Unlike other types of labels regu-
    lated by the FDA, such as drug labels, see 
    21 U. S. C. §355
    (d), it would appear the FDA does not preapprove food
    and beverage labels under its regulations and instead
    relies on enforcement actions, warning letters, and other
    measures. See Brief for United States as Amicus Curiae
    in Opposition 16. Because the FDA acknowledges that it
    does not necessarily pursue enforcement measures regard-
    ing all objectionable labels, ibid., if Lanham Act claims
    were to be precluded then commercial interests—and
    indirectly the public at large—could be left with less effec-
    tive protection in the food and beverage labeling realm
    than in many other, less regulated industries. It is un-
    likely that Congress intended the FDCA’s protection of
    health and safety to result in less policing of misleading
    food and beverage labels than in competitive markets for
    other products.
    Cite as: 573 U. S. ____ (2014)           13
    Opinion of the Court
    C
    Coca-Cola argues the FDCA precludes POM’s Lanham
    Act claim because Congress intended national uniformity
    in food and beverage labeling. Coca-Cola notes three
    aspects of the FDCA to support that position: delegation of
    enforcement authority to the Federal Government rather
    than private parties; express pre-emption with respect to
    state laws; and the specificity of the FDCA and its imple-
    menting regulations. But these details of the FDCA do
    not establish an intent or design to preclude Lanham Act
    claims.
    Coca-Cola says that the FDCA’s delegation of enforce-
    ment authority to the Federal Government shows Con-
    gress’ intent to achieve national uniformity in labeling.
    But POM seeks to enforce the Lanham Act, not the FDCA
    or its regulations. The centralization of FDCA enforce-
    ment authority in the Federal Government does not indi-
    cate that Congress intended to foreclose private enforce-
    ment of other federal statutes.
    Coca-Cola next appeals to the pre-emption provision
    added to the FDCA in 1990. See §343–1. It argues that
    allowing Lanham Act claims to proceed would undermine
    the pre-emption provision’s goal of ensuring that food and
    beverage manufacturers can market nationally without
    the burden of complying with a patchwork of require-
    ments. A significant flaw in this argument is that the pre-
    emption provision by its plain terms applies only to cer-
    tain state-law requirements, not to federal law. See Part
    II–B, supra. Coca-Cola in effect asks the Court to ignore
    the words “State or political subdivision of a State” in the
    statute.
    Even if it were proper to stray from the text in this way,
    it is far from clear that Coca-Cola’s assertions about na-
    tional uniformity in fact reflect the congressional design.
    Although the application of a federal statute such as the
    Lanham Act by judges and juries in courts throughout the
    14        POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    country may give rise to some variation in outcome, this is
    the means Congress chose to enforce a national policy to
    ensure fair competition. It is quite different from the
    disuniformity that would arise from the multitude of state
    laws, state regulations, state administrative agency rul-
    ings, and state-court decisions that are partially forbidden
    by the FDCA’s pre-emption provision. Congress not infre-
    quently permits a certain amount of variability by author-
    izing a federal cause of action even in areas of law where
    national uniformity is important. Compare Bonito Boats,
    Inc. v. Thunder Craft Boats, Inc., 
    489 U. S. 141
    , 162 (1989)
    (“One of the fundamental purposes behind the Patent and
    Copyright Clauses of the Constitution was to promote
    national uniformity in the realm of intellectual property”),
    with 
    35 U. S. C. §281
     (private right of action for patent
    infringement); see Wyeth, 
    555 U. S., at 570
     (“[T]he [FDCA]
    contemplates that federal juries will resolve most mis-
    branding claims”). The Lanham Act itself is an example of
    this design: Despite Coca-Cola’s protestations, the Act is
    uniform in extending its protection against unfair compe-
    tition to the whole class it describes. It is variable only to
    the extent that those rights are enforced on a case-by-case
    basis. The variability about which Coca-Cola complains is
    no different than the variability that any industry covered
    by the Lanham Act faces. And, as noted, Lanham Act
    actions are a means to implement a uniform policy to
    prohibit unfair competition in all covered markets.
    Finally, Coca-Cola urges that the FDCA, and particu-
    larly its implementing regulations, addresses food and bev-
    erage labeling with much more specificity than is found
    in the provisions of the Lanham Act. That is true. The
    pages of FDA rulemakings devoted only to juice-blend
    labeling attest to the level of detail with which the FDA
    has examined the subject. E.g., Food Labeling; Declara-
    tion of Ingredients; Common or Usual Name for Non-
    standardized Foods; Diluted Juice Beverages, 58 Fed. Reg.
    Cite as: 573 U. S. ____ (2014)           15
    Opinion of the Court
    2897–2926 (1993). Because, as we have explained, the
    FDCA and the Lanham Act are complementary and have
    separate scopes and purposes, this greater specificity
    would matter only if the Lanham Act and the FDCA can-
    not be implemented in full at the same time. See RadLAX
    Gateway Hotel, LLC v. Amalgamated Bank, 566 U. S. ___,
    ___ (2012) (slip op., at 5–7). But neither the statutory
    structure nor the empirical evidence of which the Court is
    aware indicates there will be any difficulty in fully enforc-
    ing each statute according to its terms. See Part II–B,
    supra.
    D
    The Government disagrees with both Coca-Cola and
    POM. It submits that a Lanham Act claim is precluded
    “to the extent the FDCA or FDA regulations specifically
    require or authorize the challenged aspects of [the] label.”
    Brief for United States as Amicus Curiae 11. Applying
    that standard, the Government argues that POM may not
    bring a Lanham Act challenge to the name of Coca-Cola’s
    product, but that other aspects of the label may be chal-
    lenged. That is because, the Government argues, the FDA
    regulations specifically authorize the names of juice
    blends but not the other aspects of the label that are at
    issue.
    In addition to raising practical concerns about drawing
    a distinction between regulations that “specifically . . .
    authorize” a course of conduct and those that merely
    tolerate that course, id., at 10–11, the flaw in the Govern-
    ment’s intermediate position is the same as that in Coca-
    Cola’s theory of the case. The Government assumes that
    the FDCA and its regulations are at least in some circum-
    stances a ceiling on the regulation of food and beverage
    labeling. But, as discussed above, Congress intended the
    Lanham Act and the FDCA to complement each other with
    respect to food and beverage labeling.
    16        POM WONDERFUL LLC v. COCA-COLA CO.
    Opinion of the Court
    The Government claims that the “FDA’s juice-naming
    regulation reflects the agency’s ‘weigh[ing of] the compet-
    ing interests relevant to the particular requirement in
    question.’ ” Id., at 19 (quoting Medtronic, Inc. v. Lohr, 
    518 U. S. 470
    , 501 (1996)). The rulemaking indeed does al-
    lude, at one point, to a balancing of interests: It styles a
    particular requirement as “provid[ing] manufacturers with
    flexibility for labeling products while providing consumers
    with information that they need.” 
    58 Fed. Reg. 2919
    –
    2920. But that rulemaking does not discuss or even cite
    the Lanham Act, and the Government cites no other
    statement in the rulemaking suggesting that the FDA
    considered the full scope of the interests the Lanham Act
    protects. In addition, and contrary to the language quoted
    above, the FDA explicitly encouraged manufacturers to
    include material on their labels that is not required by the
    regulations. 
    Id., at 2919
    . A single isolated reference to a
    desire for flexibility is not sufficient to transform a rule-
    making that is otherwise at best inconclusive as to its
    interaction with other federal laws into one with preclu-
    sive force, even on the assumption that a federal regula-
    tion in some instances might preclude application of a
    federal statute. Cf. Williamson v. Mazda Motor of Amer-
    ica, Inc., 562 U. S. ___, ___ (2011) (slip op., at 10–11).
    In addition, Geier v. American Honda Motor Co., 
    529 U. S. 861
     (2000), does not support the Government’s ar-
    gument. In Geier, the agency enacted a regulation delib-
    erately allowing manufacturers to choose between differ-
    ent options because the agency wanted to encourage
    diversity in the industry. A subsequent lawsuit chal-
    lenged one of those choices. The Court concluded that the
    action was barred because it directly conflicted with the
    agency’s policy choice to encourage flexibility to foster
    innovation. 
    Id., at 875
    . Here, by contrast, the FDA has
    not made a policy judgment that is inconsistent with
    POM’s Lanham Act suit. This is not a case where a law-
    Cite as: 573 U. S. ____ (2014)           17
    Opinion of the Court
    suit is undermining an agency judgment, and in any event
    the FDA does not have authority to enforce the Lanham
    Act.
    It is necessary to recognize the implications of the United
    States’ argument for preclusion. The Government asks
    the Court to preclude private parties from availing them-
    selves of a well-established federal remedy because an
    agency enacted regulations that touch on similar subject
    matter but do not purport to displace that remedy or even
    implement the statute that is its source. Even if agency
    regulations with the force of law that purport to bar other
    legal remedies may do so, see 
    id., at 874
    ; see also Wyeth,
    
    555 U. S., at 576
    , it is a bridge too far to accept an agen-
    cy’s after-the-fact statement to justify that result here. An
    agency may not reorder federal statutory rights without
    congressional authorization.
    *     *   *
    Coca-Cola and the United States ask the Court to ele-
    vate the FDCA and the FDA’s regulations over the private
    cause of action authorized by the Lanham Act. But the
    FDCA and the Lanham Act complement each other in the
    federal regulation of misleading labels. Congress did not
    intend the FDCA to preclude Lanham Act suits like
    POM’s. The position Coca-Cola takes in this Court that
    because food and beverage labeling is involved it has no
    Lanham Act liability here for practices that allegedly
    mislead and trick consumers, all to the injury of competi-
    tors, finds no support in precedent or the statutes. The
    judgment of the Court of Appeals for the Ninth Circuit is
    reversed, and the case is remanded for further proceedings
    consistent with this opinion.
    It is so ordered.
    JUSTICE BREYER took no part in the consideration or
    decision of this case.
    

Document Info

Docket Number: 12–761.

Citation Numbers: 189 L. Ed. 2d 141, 134 S. Ct. 2228, 2014 U.S. LEXIS 4165, 82 U.S.L.W. 4475, 110 U.S.P.Q. 2d (BNA) 1877, 24 Fla. L. Weekly Fed. S 846, 2014 WL 2608859

Judges: Kennedy

Filed Date: 6/12/2014

Precedential Status: Precedential

Modified Date: 10/19/2024

Authorities (14)

Bonito Boats, Inc. v. Thunder Craft Boats, Inc. , 109 S. Ct. 971 ( 1989 )

United States v. Fausto , 108 S. Ct. 668 ( 1988 )

62 Cases of Jam v. United States , 71 S. Ct. 515 ( 1951 )

Circuit City Stores, Inc. v. Adams , 121 S. Ct. 1302 ( 2001 )

J. E. M. Ag Supply, Inc. v. Pioneer Hi-Bred International, ... , 122 S. Ct. 593 ( 2001 )

Dastar Corp. v. Twentieth Century Fox Film Corp. , 123 S. Ct. 2041 ( 2003 )

Pom Wonderful LLC v. Coca-Cola Co. , 679 F.3d 1170 ( 2012 )

United States v. Detroit Timber & Lumber Co. , 26 S. Ct. 282 ( 1906 )

Medtronic, Inc. v. Lohr , 116 S. Ct. 2240 ( 1996 )

Food & Drug Administration v. Brown & Williamson Tobacco ... , 120 S. Ct. 1291 ( 2000 )

Geier v. American Honda Motor Co. , 120 S. Ct. 1913 ( 2000 )

Crosby v. National Foreign Trade Council , 120 S. Ct. 2288 ( 2000 )

Chickasaw Nation v. United States , 122 S. Ct. 528 ( 2001 )

Pom Wonderful LLC v. COCA COLA CO. , 727 F. Supp. 2d 849 ( 2010 )

View All Authorities »

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