In a "landmark" class-action lawsuit, attorneys for plaintiffs defrauded by the sale of milk falsely labeled as "organic" have cited a recent Supreme Court ruling, which found that tobacco companies can be sued under state law for deceptive advertising, in arguing against dismissal of the case.
Defendants in the case, which includes Aurora Dairy Corporation, Safeway, Inc., and Wal-Mart Stores, had asked for the case to be dismissed last October. Their attorneys had argued that the U.S. Department of Agriculture has primary jurisdiction, and that the Organic Foods Production Act preempts state law in relation to certain regulatory matters.
Although the federal Cigarette Labeling and Advertising Act protects tobacco companies from some state laws, the Supreme Court ruling of last December 15 was based on general rules of deception and fraud, not "smoking" or "health". In the case, involving deceptive advertising of light cigarettes, the court ruled that tobacco firms can be sued under state law.
The present federal case, being heard in the Eastern District of Missouri, is the result of 19 class-action lawsuits filed since the fall of 2007 which originally involved dozens of plaintiffs. The suit alleges that Aurora labeled milk as organic without meeting federal organic standards, and that retailers of that milk were complicit in the misrepresentation of such milk as "organic" to consumers. Aurora and the retailers deny the allegations. A ruling on the motions to dismiss the case is expected soon.
