In a case against Herb Thyme Farms, Inc., the California Supreme Court unanimously ruled that consumer lawsuits are not preempted when alleging the company intentionally labeled conventionally grown foods as “organic”. The groundbreaking decision means that growers cannot avoid consumer lawsuits alleging that the company purposely mislabeled non-organic foods for financial gain.
The ruling goes against a previous decision by the California Court of Appeals, who decided that the lawsuit was preempted by the federal Organic Food Production Act (OFPA) of 1990. The act established standards for foods marketed as “organic” in the United States and is also intended “to facilitate interstate commerce in fresh and processed food that is organically produced.”
Contrary to the lower court’s ruling, the California Supreme Court found that lawsuits such as this reinforce the purpose of OFPA, which was implemented so consumers could know that organic foods met a certain standard. “By all appearances,” the Court wrote, “permitting state consumer fraud actions would advance, not impair, [OFPA’s] goals. Substitution fraud, intentionally marketing products as organic that have been grown conventionally, undermines the assurances the USDA Organic label is intended to provide. Conversely, the prosecution of such fraud, whether by public prosecutors where resources and state laws permit, or through civil suits by individuals or groups of consumers, can only serve to deter mislabeling and enhance consumer confidence.”
The lawsuit alleges that consumers are being deceived into paying organic prices for a non-organic product. Additionally, these actions also undermine the integrity of the organic industry.
from Parker Waichman http://www.yourlawyer.com/blog/california-high-court-upholds-consumer-lawsuits-over-organic-mislabeling/
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