California Supreme Court Opens the Door to Organic Mislabeling Claims

Last week, the California Supreme Court issued a long awaited ruling on organic labeling in Quesada v. Herb Thyme Farms, Inc., No. S216305, 2015 WL 7770635 (Cal. Dec. 3, 2015). At issue in Quesada was whether consumers may bring state law fraud and misrepresentation claims to challenge herb products allegedly mislabeled as “certified organic.” The defendant, Herb Thyme Farms Inc., argued that plaintiff’s claims were preempted by the federal Organic Foods Production Act of 1990 (OFPA).

In a unanimous decision, the California Supreme Court disagreed, holding instead that private enforcement of national organic standards enhances, rather than inhibits, federal organic regulations. In reaching this decision, the California Supreme Court may have opened the floodgates for “organic” claims, permitting anyone to stand in the shoes of a regulator to police (and demand payouts) for technical violations of this complex and developing area of law.

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