WERDEGAR, J.—
To buyers and sellers alike, "labels matter." (Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310, 328 [120 Cal.Rptr.3d 741, 246 P.3d 877].) They serve as markers for a host of tangible and intangible
Among those labels Kwikset cited as making a difference to some consumers, and as potentially actionable under state unfair competition law if misused, was the designation of produce or other food as "organic." (Kwikset Corp. v. Superior Court, supra, 51 Cal.4th at pp. 332-333.) Here we must decide whether such a state law claim is viable, or whether the federal regulatory regime for certifying organic growers preempts a state claim that a certified grower is intentionally mislabeling conventionally grown produce and selling it as organic.
We hold a state law claim that produce is being intentionally mislabeled as organic is not preempted. When Congress entered the field in 1990, it confined the areas of state law expressly preempted to matters related to certifying production as organic, leaving untouched enforcement against abuse of the label "organic." Moreover, a central purpose behind adopting a clear national definition of organic production was to permit consumers to rely on organic labels and curtail fraud. Accordingly, state lawsuits alleging intentional organic mislabeling promote, rather than hinder, Congress's purposes and objectives. Because the Court of Appeal concluded to the contrary, finding these state fraud claims impliedly preempted, we reverse its judgment.
This case is a putative class action challenging an herb grower's marketing of its herbs as organic. Because this appeal follows the granting of a motion for judgment on the pleadings (Code Civ. Proc., § 438), we accept as true the allegations of the complaint (Angelucci v. Century Supper Club (2007) 41 Cal.4th 160, 166 [59 Cal.Rptr.3d 142, 158 P.3d 718]).
Defendant Herb Thyme Farms, Inc. (Herb Thyme), is a large herb-growing operation with multiple farms throughout California. Most of its farms use conventional growing methods, but one of its farms uses organic processes and has been properly certified by a registered certifying agent. When it comes time for distribution and marketing, however, Herb Thyme brings its conventionally grown and organic herbs to the same packing and labeling facility, processes them together, and sends blended conventional and organic herbs out under the same "Fresh Organic" label and packaging. As well, Herb Thyme packages and labels as organic some herbs that are entirely conventionally grown.
Herb Thyme sought judgment on the pleadings on federal preemption and primary jurisdiction grounds. The Organic Foods Production Act of 1990 (7 U.S.C. §§ 6501-6522; Organic Foods Act), Herb Thyme argued, vests the United States Department of Agriculture (USDA) with exclusive authority to regulate the labeling and marketing of organic products and both expressly and impliedly preempts state truth-in-advertising requirements. In the alternative, Herb Thyme asked the trial court to defer action under primary jurisdiction principles unless and until an administrative complaint had been pursued through the USDA. The trial court agreed with both express and implied preemption arguments and entered a defense judgment.
The Court of Appeal affirmed. It disagreed with the trial court's finding of express preemption, reasoning that the express preemption provisions in the Organic Foods Act limited state organic certification programs but did not foreclose state false advertising suits. However, it agreed such suits were a potential obstacle to Congress's purposes and objectives of establishing uniform national standards for organic production and labeling, and thus impliedly preempted.
We granted review to consider these preemption questions.
The "first [use of] the word `organic' to describe a method of farming in which the farmer strove for improved natural soil condition through the use of natural additions of manure and compost and the avoidance of chemical amendments" traces to the 1940s, perhaps not coincidentally the time when use of synthetic pesticides first became widespread. (Watnick, The Organic Foods Production Act, the Process/Product Distinction, and a Case for More End Product Regulation in the Organic Foods Market (2014) 32 UCLA J. Envtl. L. & Pol'y 40, 45 & fn. 20 (Watnick); see Pasquinelli, One False Move: The History of Organic Agriculture and Consequences of Non-Compliance with the Governing Laws and Regulations (2010) 3 Golden
This nascent unregulated market was not without its problems. For one, the absence of any uniform, agreed-upon standards created consumer confusion: "Even the most sophisticated organic consumer finds it difficult to know, with certainty, what the term `organic' really means." (Sen.Rep. No. 101-357, 2d Sess., p. 289 (1990), reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4943.) For another, the combination of consumers willing to pay a premium for organic products and the absence of definite standards created incentives for sharp practices. (Id. at pp. 289-290, reprinted in 1990 U.S. Code Cong. & Admin. News, pp. 4943-4944; Note, supra, 52 Food & Drug L.J. at p. 539 ["Because no regulations existed, unscrupulous producers could proffer almost any organic claim to render their food more marketable."]; Lathrop, supra, 16 J. Corp. L. at pp. 890-891.)
The several states stepped in first. Oregon enacted a first-of-its-kind state organic certification law in 1973. (Or. Rev. Stat. former § 632.925; see Watnick, supra, 32 UCLA J. Envtl. L. & Pol'y at p. 45 & fn. 24; Lathrop, supra, 16 J. Corp. L. at pp. 886, 891.) California followed in 1979, modeling its statute on Oregon's template. (Health & Saf. Code, former §§ 26469, 26569.11-26569.17, 26850.5-26850.6, added by Stats. 1979, ch. 914, pp. 3143-3149; see Bones, State and Federal Organic Food Certification Laws: Coming of Age? (1992) 68 N.D. L.Rev. 405, 410; Lathrop, at p. 891.) By 1990, 22 states had some form of regulation of organic production. (Sen.Rep. No. 101-357, 2d Sess., supra, p. 289, reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4943; Bones, at p. 408 & fns. 11-13; Lathrop, at pp. 891-892 & fn. 53.)
Frustratingly, however, no two state laws were the same. (Sen.Rep. No. 101-357, 2d Sess., supra, p. 289, reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4943.) This multiplicity of certification procedures and standards presented ongoing difficulties for both consumers and the marketplace. (Ibid. ["While State action represents a positive step forward for the organic foods industry, the differing State laws have also [led] to consumer confusion and troubled interstate commerce."].) Seeking uniformity, the organic producer community lobbied for federal regulation. (Id. at p. 290, reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4944; Franzen, Will GATT Take a Bite Out of the Organic Food Production Act of 1990? (1998) 7 Minn. J. Global Trade 399, 401.)
After some delay, the USDA in 2000 issued its final rule adopting implementing regulations, with the regulations to take effect in 2002. (65 Fed.Reg. 80548 (Dec. 21, 2000).) The final rule establishes detailed production and handling requirements for any product being sold as organic. (7 C.F.R. §§ 205.105, 205.200-205.290, 205.600-205.607 (2015).) The rule regulates organic labeling, including establishing the precise compositional requirements for products labeled "`100 percent organic,'" "`organic,'" and "`made with organic . . . ingredients.'" (Id., §§ 205.300 to 205.309 (2015).)
Thereafter, California became the first state to have its own organic program approved. (See Food & Agr. Code, §§ 46000-46029; Health & Saf. Code, §§ 110810-110959.) The California Organic Products Act of 2003 incorporates by reference federal regulations under the Organic Products Act. (Food & Agr. Code, § 46002, subd. (a).) Additionally, it grants authority to the Secretary of the Department of Food and Agriculture to maintain lists of registered certified organic producers and handlers, conduct inspections of organic operations, and adopt additional regulations governing organic production. (Food & Agr. Code, §§ 46002, subd. (b), 46003.5, 46013.1, 46013.2, 46014.4, 46018.1; Health & Saf. Code, § 110950.)
With respect to enforcement, the federal Organic Foods Act imposes civil penalties for labeling or selling products as organic when the act has not been complied with. (7 U.S.C. § 6519(a).) The act contemplates a cooperative state-federal enforcement regime. (Sen.Rep. No. 101-357, 2d Sess., supra, p. 304, reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4958 ["The Committee expects that enforcement responsibilities will be shared among the Secretary [of the USDA], the governing State officials, and the certifying agents."].) As noted, states may establish organic certification programs (7 U.S.C. § 6507); once federally approved, these state programs take principal responsibility for certifying growers and instituting administrative proceedings for noncompliance with the governing standards (7 C.F.R. § 205.668(b) (2015)). California's state program authorizes anyone to file a complaint concerning noncompliance (Food & Agr. Code, §§ 46004, 46016.1, subd. (a); Health & Saf. Code, § 110940, subd. (a)) and authorizes both the Secretary of the Department of Food and Agriculture and county agricultural commissioners to conduct investigations and impose civil penalties (Food & Agr. Code, §§ 46000, subd. (b), 46016.1-46017; Health & Saf. Code, §§ 110915, 110930, 110940). County agricultural commissioners may also ask their district attorneys to bring enforcement actions. (Food & Agr. Code, §§ 46006, 46018.2.)
We must decide whether this regulatory framework leaves room for claims under state laws of general application targeting fraud and misrepresentation.
Herb Thyme contends the Organic Foods Act expressly preempts suit under general state consumer laws because it comprehensively displaces state remedies and enforcement procedures. We conclude, as the Court of Appeal did, that the act's express preemptive effect is substantially narrower and does not extend to the claims here.
These provisions establish federal exclusivity in the affected domains. Whether production processes qualify as organic is to be measured "only . . . in accordance with" the provisions of the Organic Foods Act. (7 U.S.C. § 6506(a)(1)(A), italics added.) Use of an organic label requires certification, which may be issued only by federally approved certifying agents and only pursuant to a federal certification program, or federally approved state certification program. The effect of these provisions, as the USDA observed in its final rule implementing regulations under the act, is that "[s]tates and local jurisdictions are preempted . . . from creating programs of accreditation" for certifying agents and, further, "[s]tates also are preempted . . . from
In contrast, no similar language of exclusivity is included in the provisions of the Organic Foods Act governing sanctions for misuse of the organic label. The act provides for, inter alia, potential civil fines of up to $10,000 and ineligibility for certification for a period of five years. (7 U.S.C. § 6519(c).) But unlike those portions of the Organic Foods Act governing the standards for organic production and certification, nothing in section 6519(c) suggests these federal remedies are intended to displace whatever state law remedies might exist for deception. (See 7 C.F.R. §§ 205.660-205.668 (2015) [discussing enforcement without suggesting displacement of preexisting state remedies for fraud].) The same is true of 7 United States Code section 6520 and the regulations adopted pursuant to it (see 7 C.F.R. §§ 205.680-205.681 (2015)), which establish the procedures for growers to challenge state or federal government actions; they too do not address or suggest displacement of state consumer actions. As a matter of express preemption, we have no reason to conclude Congress intended its federal remedies as not only a floor—ensuring that, whatever else state law might provide for, some teeth would back up the new federal regulation of organic labeling—but also a ceiling, with states prohibited from continuing to augment these limited remedies. On the subject of state consumer-deception laws of general application, the text of the Organic Foods Act offers only silence.
Consistent with this view of the text, those courts to consider the reach of the Organic Foods Act have found no express preemption of state consumer protection lawsuits. In In re Aurora Dairy Corp. Organic Milk Marketing (8th Cir. 2010) 621 F.3d 781, the Eighth Circuit considered and rejected the argument that the act expressly preempted state mislabeling claims. It recognized the limited nature of express preemption under the act, which extends to state standards and certification programs not approved by the USDA but no further. In contrast, "Congress did not expressly preempt state tort claims, consumer protection statutes, or common law claims." (Id. at p. 792.) Federal trial courts have arrived at the same conclusion. (See Jones v. ConAgra Foods, Inc. (N.D.Cal. 2012) 912 F.Supp.2d 889, 894-895 [claim under California
Herb Thyme relies on one additional district court case, All One God Faith, Inc. v. Hain Celestial Group, Inc. (N.D.Cal., Aug. 8, 2012, No. C 09-3517 SI) 2012 U.S.Dist. Lexis 111553, to support its argument, but that decision is inapposite. The case involved a federal Lanham Act (15 U.S.C. § 1051 et seq.) mislabeling claim, not a state claim, and the court concluded the claim was barred on grounds of primary jurisdiction, not preemption. Moreover, the principal authority the court relied upon, POM Wonderful LLC v. Coca-Cola Co. (9th Cir. 2012) 679 F.3d 1170, was subsequently reversed by POM Wonderful LLC v. Coca-Cola Co. (2014) 573 U.S. ___ [189 L.Ed.2d 141, 134 S.Ct. 2228].
Noting the Organic Foods Act preempts existing state organic certification programs and requires future certification programs to be submitted for federal approval (7 U.S.C. § 6507; 65 Fed.Reg. 80548, 80682 (Dec. 21, 2000)), Herb Thyme argues the scope of express preemption reaches beyond certification of grower processes and agents to laws of general application that might otherwise provide private causes of action for mislabeling and deception. The only remedies for mislabeling, it maintains, are those in the act, except insofar as a state submits additional remedies to the USDA for approval under section 6507. Herb Thyme analogizes to the federal regulation of workplace safety under the Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.), which it contends preempts all state regulations affecting the covered subject matter except insofar as they have been submitted to the appropriate federal agency for approval.
However, by its terms, 7 United States Code section 6507 requires only the submission of certification programs, the state programs pursuant to which state officials and certifying agents will grant or revoke certification of the processes used by farms and handling operations within a state's borders. (See 7 U.S.C. §§ 6506(d), 6507; 7 C.F.R. §§ 205.620-205.622 (2015).) Nor does the analogy to workplace safety regulation provide assistance. The federal approval requirement under the Occupational Safety and Health Act of
As an alternative to express preemption, Herb Thyme argues the state claims pleaded here interfere with congressional goals and should be barred. Far from posing an obstacle, we conclude claims such as these affirmatively further the purposes of the act. Accordingly, they are not impliedly preempted.
The regulation of food labeling to protect the public is quintessentially a matter of long-standing local concern. The first state legislation designed to address fraud and adulteration in food sales was enacted in 1785. (Bones, State and Federal Organic Food Certification Laws: Coming of Age?, supra, 68 N.D. L.Rev. at p. 409.) California began regulating food mislabeling in the 1860s, just a few years after statehood. (See Stats. 1862, ch. 365, § 5, pp. 484-485 ["It is hereby forbidden, and declared a misdemeanor, to sell any article, to be used as food or drink by persons, under a false name, with intent to deceive the purchaser as to the real nature of the article."]); Farm Raised Salmon Cases (2008) 42 Cal.4th 1077, 1088 [72 Cal.Rptr.3d 112, 175 P.3d 1170].) In response to widespread mislabeling, misbranding, and adulteration by food suppliers, by the late 18th century "many if not most states exercised their traditional police powers to regulate generally the marketing of impure or deceptively labeled foods and beverages." (Bronco Wine Co. v. Jolly, supra, 33 Cal.4th at p. 960; see id. at pp. 959-961.)
Given this long-standing state oversight, the federal government has assumed a more peripheral role and routinely left undisturbed local policy judgments about how best to protect consumers. "If there be any subject over which it would seem the States ought to have plenary control, and the power to legislate in respect to which it ought not to be supposed was intended to be
In recent years, the continuing vitality of the nearly 70-year-old presumption against preemption has come into question. Four Supreme Court justices have called for its abandonment. (CTS Corp. v. Waldburger (2014) 573 U.S. ___, ___ [189 L.Ed.2d 62, 79-80, 134 S.Ct. 2175, 2189] (conc. opn. of Scalia, J., joined by Roberts, C. J., Thomas & Alito, JJ.); PLIVA, Inc. v. Mensing (2011) 564 U.S. ___, ___ [180 L.Ed.2d 580, 594-595, 131 S.Ct. 2567, 2579-2580] (plur. opn. of Thomas, J., joined by Roberts, C. J., Scalia & Alito, JJ.); Altria Group, Inc. v. Good (2008) 555 U.S. 70, 98-103 [172 L.Ed.2d 398, 129 S.Ct. 538] (dis. opn. of Thomas, J., joined by Roberts, C. J., Scalia & Alito, JJ.).) However, this view has yet to command a majority. Nor is it clear those justices arguing for presumptionless preemption analysis would apply that approach to obstacle preemption. CTS Corp. and Altria Group were express preemption cases, while PLIVA was a conflict preemption case. The separate opinions in the two express preemption cases limited their call for a repeal of the presumption to cases interpreting express preemption clauses (CTS Corp., at p. ___ [189 L.Ed.2d at p. 80, 134 S.Ct. at p. 2189] (conc. opn. of Scalia, J., joined by Roberts, C. J., Thomas & Alito, JJ.); Altria Group, at p. 102 (dis. opn. of Thomas, J., joined by Roberts, C. J., Scalia & Alito, JJ.)), while the conflict preemption case offered a theory of interpretation arguably applicable only to cases where compliance with state and federal law would be impossible (PLIVA, at p. ___ [180 L.Ed.2d
For now, Rice v. Santa Fe Elevator Corp. (1947) 331 U.S. 218, 230 [91 L.Ed. 1447, 67 S.Ct. 1146], the original source of the presumption, and the countless cases that have followed it remain the law. Justices Kennedy, Ginsburg, Breyer, Sotomayor and Kagan still endorse and apply a presumption. (CTS Corp. v. Waldburger, supra, 573 U.S. at p. ___ [189 L.Ed.2d at p. 79, 134 S.Ct. at pp. 2188-2189] (plur. opn. of Kennedy, J., joined by Sotomayor & Kagan, JJ.); PLIVA, Inc. v. Mensing, supra, 564 U.S. at p. ___ [180 L.Ed.2d at pp. 605-607, 131 S.Ct. at pp. 2590-2592] (dis. opn. of Sotomayor, J., joined by Ginsburg, Breyer & Kagan, JJ.); see Arizona v. Inter Tribal Council of Ariz., Inc. (2013) 570 U.S. ___, ___ [186 L.Ed.2d 239, 257-259, 133 S.Ct. 2247, 2260-2261] (conc. opn. of Kennedy, J.) [questioning whether a "presumption" is the best way to characterize the appropriate canon of construction, while espousing the view that "a court must not lightly infer a congressional directive to negate the States' otherwise proper exercise of their sovereign power"].)
Accordingly, in this obstacle preemption case, we continue to conduct our analysis from the starting point of a presumption that displacement of state regulation in areas of traditional state concern was not intended absent clear and manifest evidence of a contrary congressional intent. With this presumption in mind, we consider the evident purposes and objectives of the Organic Foods Act.
When it adopted the act, Congress identified a series of related problems on both the demand and supply sides that were hampering development of a healthy organic market. On the demand side, the absence of consistent national standards for organic production had led to "consumer confusion" in
Against this background, the first section of the Organic Foods Act expressly articulates Congress's intentions. "It is the purpose of this chapter—[¶] (1) to establish national standards governing the marketing of certain agricultural products as organically produced products; [¶] (2) to assure consumers that organically produced products meet a consistent standard; and [¶] (3) to facilitate interstate commerce in fresh and processed food that is organically produced." (7 U.S.C. § 6501.) These three goals interrelate and mutually reinforce each other. A uniform national standard for marketing organic produce serves to boost consumer confidence that an "organic" label guarantees compliance with particular practices, and also deters intentional mislabeling, "so that consumers are sure to get what they pay for." (Sen.Rep. No. 101-357, 2d Sess., supra, p. 289, reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4943.) In turn, uniform standards "provide a level playing field" for organic growers, allowing them to effectively market their products across state lines by eliminating conflicting regulatory regimes. (Id. at p. 290, reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4944.) Standards that enhance consumer confidence in meaningful labels and reduce the distribution network's reluctance to carry organic products may increase both supply and demand and thereby promote organic interstate commerce. (Id. at pp. 289-290, reprinted in 1990 U.S. Code Cong. & Admin. News, pp. 4943-4944.)
By all appearances, permitting state consumer fraud actions would advance, not impair, these 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
We may consider as well statements by the USDA, which Congress charged with adopting regulations to implement the Organic Foods Act. (7 U.S.C. § 6521.) The agency's views are entitled to considerable weight here, where some aspects of the subject matter are recondite and the USDA, as the entity responsible for preparing regulations under the statutory scheme, has relevant technical expertise. (See Geier v. American Honda Motor Co. (2000) 529 U.S. 861, 883 [146 L.Ed.2d 914, 120 S.Ct. 1913]; Jevne v. Superior Court (2005) 35 Cal.4th 935, 958 [28 Cal.Rptr.3d 685, 111 P.3d 954].)
When the USDA issued its final rule adopting implementing regulations, it emphasized that the uniform federal standards for organic certification were designed to supplement and enhance, rather than foreclose, state law consumer remedies for deception. The final rule commentary recognized "consumer fraud involving organic food does occur," and recited multiple instances where state civil and criminal remedies for such fraud had been pursued. (65 Fed.Reg. 80548, 80668 (Dec. 21, 2000).) However, the legal framework necessary for effective fraud deterrence was often lacking: "[O]nly about half of the States have any organic legislation, and few of those States have laws with enough teeth to permit prosecution of organic fraud. In States without similar laws, the costs associated with remedies via the tort system may be high." (65 Fed.Reg. 80548, 80668.) Part of the problem was the absence of a clearly defined and accepted meaning for
The especially strong presumption against preemption in this precise area reinforces this conclusion. Congress was surely aware of both the extensive history of state regulation of food labeling and the widespread state regulation of general deception in the marketplace. (See Farm Raised Salmon Cases, supra, 42 Cal.4th at pp. 1088, 1091.) Yet it made note of, and expressly set aside, only those state laws establishing either standards for the meaning of "organic" or standards for certification. (7 U.S.C. §§ 6503, 6505(a)(1), 6506(a)(1)(A), 6507(a); see Sen.Rep. No. 101-357, 2d Sess., supra, p. 289, reprinted in 1990 U.S. Code Cong. & Admin. News, p. 4943.) If it intended to disable state common law and statutory remedies for fraud and deception in this specific area, "its failure even to hint at [such an intent] is spectacularly odd. . . ." (Medtronic, Inc. v. Lohr (1996) 518 U.S. 470, 491 [135 L.Ed.2d 700, 116 S.Ct. 2240] (plur. opn. of Stevens, J.); see Segedie v. Hain Celestial Group, Inc. (S.D.N.Y., May 7, 2015, No. 14-cv-0529 (NSR)) 2015 U.S.Dist. Lexis 60739, pp. *18-*19 [rejecting obstacle preemption in part because of clearly defined limits on express preemption under the Organic Foods Act].)
The only published appellate decision to consider the scope of implied preemption under the Organic Foods Act, In re Aurora Dairy Corp. Organic Milk Marketing, supra, 621 F.3d 781 (Aurora Dairy), is instructive. In Aurora Dairy, the Eighth Circuit held preempted only state consumer protection claims asserting the defendant dairy should not have been permitted to sell milk as USDA organic because its production methods were not actually consistent with federal regulations—that is, claims making a frontal assault on the validity of the organic producer's government certification. These claims were preempted because they conflicted with the exclusive role of federally certified agents in certifying a producer's methods as organic. (Id. at pp. 796-797.) Preempted as well were claims against the federally sanctioned agent alleging that it erred either in initially granting certification or in not thereafter revoking certification. (Id. at pp. 787, 795-796.)
But Aurora Dairy expressly distinguished as not preempted state law claims that merely challenged the truth of facts relating to certification. (Aurora Dairy, supra, 621 F.3d at p. 797.) For example, the plaintiffs contested representations that milk was being produced without antibiotics or pesticides and that the defendants' cows received humane treatment. (Id. at p. 790.) Though evidence of inhumane treatment might have precluded a certifying agent from granting certification, this potential overlap did not require preemption. Aurora Dairy rejected the producer's argument that "because the class plaintiffs' claims are based upon allegations that Aurora, despite its certification, knowingly failed to comply with provisions of the [Organic Foods Act] and [implementing regulations] upon which certification is based, those claims must be dismissed, because certification means that Aurora complied with the statute and regulations." (Id. at pp. 797-798.) Certification decisions inevitably rested upon only sampled inspections of a producer's operations; allowing proof of dairy misrepresentations, unlike direct challenges to certification, would not require a court to decide whether a certifying agent had erred based on what the agent had seen. (Id. at p. 798.) Considering the structure and evident purposes of the Organic Foods Act, the Eighth Circuit concluded suits challenging representations relevant to certification posed no obstacle and need not be preempted. (Aurora Dairy, at pp. 798-799.)
Given the operative complaint, however, we have no occasion to determine whether such a claim would be preempted, nor whether we agree with the Eighth Circuit concerning the area of implied preemption it identifies. (Cf. Segedie v. Hain Celestial Group, Inc., supra, 2015 U.S.Dist. Lexis 60739 at pp. *12-*19 [disagreeing with Aurora Diary and rejecting obstacle preemption even for claims that challenge whether products made by certified production methods are truly organic].) Unlike the complaint at issue in Aurora Dairy, the complaint here accepts as valid Herb Thyme's certification and compliance with federal regulations on its certified organic farm. Quesada concedes Herb Thyme can and does grow organic herbs, which it is entitled to package and sell using a USDA Organic label.
The gravamen of these claims is different. Herb Thyme has both certified organic and conventional growing operations. Underlying each cause of action is the allegation that Herb Thyme not only sells its organic herbs under an organic label, but also knowingly and intentionally sells some conventional herbs under an organic label and at an organic premium price. Thus, according to the operative complaint, Herb Thyme sometimes intentionally mixes its conventional herbs in with organic herbs. On other occasions, it fills orders for organic herbs entirely with conventional herbs. According to the complaint, this fraud is willful: "At all relevant times herein Defendants were aware that Herb Thyme's `Fresh Organic' herb products were not 100% organic herb products"; "Herb Thyme deliberately promoted and continues to promote its conventionally grown fresh herb products to consumers in a false and misleading manner" in order to garner the premium prices organic products command; a USDA Organic label is included on packaging "with the
Whether or not the improper certification claims preempted in Aurora Dairy would pose an obstacle to congressional purposes and objectives, the claims just recited do not. Congress enacted national standards to boost consumer confidence in the assurances an organic label carries, protect fair competition, and promote the growth of the interstate market for organic goods. (7 U.S.C. § 6501.) It singled out the very practice alleged here, the deliberate mislabeling of conventional produce as organic, as a major reason why national legislation was needed in the first place. (Sen.Rep. No. 101-357, 2d Sess., supra, pp. 289-290, reprinted in 1990 U.S. Code Cong. & Admin. News, pp. 4943-4944.) The Organic Foods Act cannot be interpreted, under the guise of obstacle preemption, as shielding from suit the precise misconduct Congress sought to eradicate. To grant immunity against claims of intentional commingling and fraudulent substitution of conventional for organic produce would neither bolster national standards nor enhance consumer confidence, but might instead cause consumers to avoid paying organic premiums "upon realizing preemption grants organic producers a de facto license to violate state fraud, consumer protection, and false advertising laws with relative impunity. . . ." (Aurora Dairy, supra, 621 F.3d at p. 799; see Segedie v. Hain Celestial Group, Inc., supra, 2015 U.S.Dist. Lexis 60739 at pp. *14-*15 [state fraud claims in fact promote a consistent national organic standard].)
Herb Thyme further contends permitting this suit to proceed would interfere with the exclusive role granted the USDA, state Department of Agriculture, and certifying agents to ensure compliance with national standards. But while the Organic Foods Act surely gives these entities a leading role in monitoring grower behavior, nothing in the text of the act or its evident purposes suggests Congress intended that role to be exclusive. As discussed in the context of express preemption, the enforcement framework established by the act does not use the language of exclusivity. (Ante, at p. 310.) The Court of Appeal noted the omission of a federal private right of action as a basis for inferring exclusivity, but the United States Supreme Court and this court have often explained that such an omission does not demonstrate Congress was opposed to enforcement under state law, and indeed sometimes may support the contrary inference, that preemption of state law claims was not intended. (Medtronic, Inc. v. Lohr, supra, 518 U.S. at p. 487 (plur. opn. of Stevens, J.) [the omission of a federal private right of action makes less plausible the inference that Congress intended the preemption of state
More generally, the overarching legislative scheme is difficult to reconcile with Herb Thyme's contention that Congress intended only "one expert umpire" to have a say. The regulatory regime the Organic Foods Act establishes is unlike that under, for instance, the Federal Food, Drug, and Cosmetic Act, where a single federal agency centrally regulates the dissemination of pharmaceuticals and tightly controls the exact wording of the disclosures that go with them. (21 U.S.C. § 301 et seq.; see PLIVA, Inc. v. Mensing, supra, 564 U.S. at p. ___ [180 L.Ed.2d at pp. 588-591, 131 S.Ct. at pp. 2574-2576].) The Organic Foods Act and its implementing regulations set guidelines, but every certified grower has its own individual production plan, and responsibility for approval of that plan and subsequent enforcement of compliance with it is widely distributed among local and state officials and certifying agents. (7 U.S.C. §§ 6513-6515; see Food & Agr. Code, §§ 46000-46029 [splitting enforcement among the Secretary of the Department of Food and Agriculture and 58 county agricultural commissioners]; Health & Saf. Code, §§ 110810-110959 [same].) In California alone, there are currently more than 30 different active private certifying agents; nationally, there are nearly 80.
Herb Thyme expresses concern that absent preemption of Quesada's false advertising and unfair competition claims, whether its produce is organic would be evaluated by a lay jury applying a nebulous "reasonable consumer" standard. However, these claims are decided by a judge, not a jury. (Hodge v. Superior Court (2006) 145 Cal.App.4th 278, 284-285 [51 Cal.Rptr.3d 519]; People v. Witzerman (1972) 29 Cal.App.3d 169, 176-177 [105 Cal.Rptr. 284].) Moreover, given the express preemption of state standards for what qualifies as organic, a judge necessarily would decide whether Herb Thyme's produce is organic using the standards of the Organic Foods Act and its implementing regulations, as fully incorporated into state law. (See 7 U.S.C. § 6505(a)(1); Food & Agr. Code, § 46002; Health & Saf. Code, § 110820.)
Finally, Herb Thyme argues private suits like this one interfere with its federally established entitlement to label and sell its herbs as organic and conflict with federal control over who may, and may not, use the USDA Organic label. However, certification is not a grant of a right to use an organic label on all one's products; neither certified nor uncertified growers are permitted to label as organic that which has not been produced in accordance with an approved organic plan. (7 U.S.C. § 6505(a)(1)(A); 7 C.F.R. § 205.102 (2015).) Certification cannot insulate from suit intentional fraud of the sort alleged here; these claims do not contest Herb Thyme's ability to do anything its federal certification actually permits it to do. Federal authorization to use a particular label need not preempt state consumer protection suits where, as in this area, Congress was surely aware of the prevalence of such state suits and elected not to expressly preempt them, thereby leaving them in place as an effective complementary way of promoting public health and safety. (See Wyeth v. Levine, supra, 555 U.S. at pp. 573-575 [rejecting a similar argument for preemption]; Segedie v. Hain Celestial Group, Inc., supra, 2015 U.S.Dist. Lexis 60739 at pp. *16-*18 [in reliance on Wyeth, rejecting the same argument under the Organic Foods Act].)
In the alternative, Herb Thyme asks us to affirm on primary jurisdiction grounds. (See generally Nader v. Allegheny Airlines (1976) 426 U.S. 290, 303-304 [48 L.Ed.2d 643, 96 S.Ct. 1978]; Farmers Ins. Exchange v. Superior Court (1992) 2 Cal.4th 377, 390 [6 Cal.Rptr.2d 487, 826 P.2d 730].) The trial court declined to rule formally on this argument, and the Court of Appeal did not address it. Consequently, although Quesada sought review as to both preemption and primary jurisdiction, we limited the issues when granting review and explicitly confined ourselves to the only matter developed below, federal preemption. We decline to address the applicability or inapplicability of the primary jurisdiction doctrine to this case, leaving it to the lower courts in the first instance in the event Herb Thyme chooses to pursue the argument.
We reverse the Court of Appeal's judgment and remand for further proceedings not inconsistent with this opinion.
Cantil-Sakauye, C. J., Chin, J., Corrigan, J., Liu, J., Cuéllar, J., and Kruger, J., concurred.