Vineyard & Winery Management

November/December 2015

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w w w. v w m m e d i a . c o m N o v - D e c 2 015 | V I N E YA R D & W I N E RY M A N A G E M E N T 9 9 in the United States. The FDA also promulgates regulations that pro- vide guidance on how manufactur- ers should label food products. (For labeling purposes, the FDA gener- ally does not have jurisdiction over most alcoholic beverages.) The Federal Food, Drug and Cosmetic Act (FD&C Act), which authorizes the FDA to oversee food safety, does not provide an expressed or implied private right of action to enforce the Act's provi- sions. This generally means a com- petitor must find alternative legal grounds to pursue a claim. The Lanham Act allows a com- petitor to bring a private right of action against another company for unfair competition arising from false or misleading advertising. Since advertising and labeling are generally not mutually exclusive, the regulation of certain products c a n p r e s e n t i n t e r e s t i n g q u e s- tions, especially in the context of ing on its face, Coca-Cola argued its label was actually in compliance with FDA juice labeling rules. I n i t s s u i t , P o m Wo n d e r f u l alleged that the use of the label by Coca-Cola was misleading and deceptive under the Lanham Act, which allows a competitor to sue another provided that it asserts unfair competition from false or misleading product descriptions. The Court of Appeals for the Ninth Circuit held that the FD&C Act precluded Pom Wonderful's Lan- ham Act claim. Pom Wonderful appealed, and the case reached the Supreme Court in 2014. The Supreme Court ruled that a competitor can, in fact, bring a pri- vate right of action under the Lan- ham Act alleging unfair competition from false or misleading product descriptions on the labels or food or beverages regulated by the FD&C Act. In other words, a food label can be in compliance with food and beverages. For example, how do the Lanham Act and the FD&C Act interact when a label is in compliance with the FD&C Act and enacting agency regulations, yet may present grounds for unfair competition claims? Such was the issue presented to the Supreme Court last year in Pom Wonderful. Pom Wonderful LLC, the pro- ducer and seller of pomegranate juices, sued competitor Coca-Cola Company over Coca-Cola's Minute Maid Pomegranate Blueberry juice. The Minute Maid label contained the words "blueberry pomegranate" in greater predominance than other text that indicated the juice was a blend of five fruit juices. In actual- ity, the Minute Maid Pomegranate Blueberry juice was comprised of 0.3% pomegranate juice and 0.2% blueberry juice, whereas 99.4% of the blend was apple and grape juice. While this label may seem mislead- When it comes to your land, you have a special set of needs. That's why we offer John Deere Narrow Series Tractors — specially engineered to easily maneuver in vineyards and orchards. See the Belkorp Ag team today for more equipment and tools made just for your business. Apply for financing online now! One team, one goal: Your satisfaction. 5EN Narrow Series Tractors Available in cab and open station Only 48" wide Harvest Rental Returns AVAILABLE NOW! BelkorpAg.com Calistoga, CA 1856 Lincoln Ave. (707) 942-4566 Santa Rosa, CA 4 101 S. Moorland Ave. (707) 584-9111 Ukiah, CA 247 E. Perkins St. (707) 376-9670 The strongest equipment for the most delicate harvest. Field sales team Bob, Paul, Jerry and Jerry. BAS7X51031VWM-4C Over 100 years of combined experience.

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