The Supreme Court ruled on Thursday that Pom Wonderful can proceed in its legal case against Coca Cola concerning a long-standing battle over juice labeling.
Coca Cola’s Minute Maid offers a “Pomegranate Blueberry” juice, which contains only 0.3 percent pomegranate juice and 0.2 percent blueberry juice, highlighting the words “Pomegranate Blueberry” with the phrase “flavored blend of 5 juices” in a smaller type below. Pom Wonderful argues this labeling is misleading to consumers.
After attempting to bring a lawsuit against Coca Cola using the Lanham Act of 1947 – which protects trademarks and unfair competition – lower courts rejected the lawsuit by stating that the label adhered to Food and Drug Administration rules, making it inapplicable for a lawsuit.
However, the Supreme Court reversed the decision stating that the Food and Drug Administration rules did not supersede the Lanham Act but ruled that the two coexist and complement each other.
“The Lanham Act creates a cause of action for unfair competition through misleading advertising or labeling,” read the Supreme Court’s decision, and it allows competitors to seek reparations for potentially damaging acts by another company.
Coca Cola argued, alternatively, that the Federal Drug Administration rules take precedence and – since the label was not deemed in violation of those rules – Pom Wonderful did not have the grounds to sue Coca Cola for the label.
A unanimous 8-0 vote in favor of Pom Wonderful established that the Federal Drug Administration rules and the Lanham act were not in conflict, and therefore Pom Wonderful was able to pursue a lawsuit.
“The FDA has not made a policy judgment that is inconsistent with POM’s Lanham Act suit,” concluded the Supreme Court decision. “This is not a case where a lawsuit is undermining an agency judgment, and in any event the FDA does not have authority to enforce the Lanham Act.”
Justice Stephen Breyer did not participate in this case.
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