Intersection Of Two Federal Laws In Unfair Competition Context.

The Lanham Act [15 U.S.C. § 1125] permits one competitor to sue another for unfair competition arising from false or misleading product descriptions. The Food, Drug and Cosmetic Act [21 U.S.C. §§ 321(f) and 331] prohibits the misbranding of food and drink, and gives exclusive enforcement authority to the federal government. In the present matter, the petitioner, who produces and markets a juice blend, brought an action against respondent Coca-Cola Company alleging one of its juice blends misleads consumers into believing the product consists predominately of pomegranate and blueberry juices when it in fact consists predominately of apple and grape juices. Based on the Food, Drug and Cosmetic Act, the federal district court granted summary judgment in Coca-Cola’s favor. The United States Supreme Court held that this situation does not represent a preemption case and that competitors may bring Lanham Act claims. (POM Wonderful, LLC v. Coca-Cola Co. (U.S. Sup. Ct.; June 12, 2014)134 S.Ct. 2228, [189 L.Ed.2d 141].)