Davidson v. Sprout Foods, Inc., No. 22-16656 (9th Cir. 2024)
Annotate this Case
The case involves Gillian and Samuel Davidson, who filed a class action lawsuit against Sprout Foods, Inc., alleging that the labels on Sprout's baby food pouches violated California's Sherman Law, which incorporates all federal food labeling standards. The Davidsons claimed that Sprout's labels, which stated the amount of nutrients the pouches contained, were misleading and harmful to consumers.
The district court dismissed the Davidsons' claims. It ruled that the Sherman Law claim was preempted by federal law, which only allows the federal government to enforce food labeling standards. The court also dismissed the Davidsons' fraud-based claims, stating that they failed to specifically allege why Sprout's products were harmful.
On appeal, the United States Court of Appeals for the Ninth Circuit affirmed in part and reversed in part. The court held that federal law did not preempt private enforcement of the Sherman Law's labeling requirements. The court reasoned that the federal food labeling statute permits states to enact labeling standards identical to the federal standards, which California has done through the Sherman Law. Therefore, the district court should not have dismissed the Sherman Law claims. However, the court affirmed the dismissal of the Davidsons' fraud-based claims, agreeing with the lower court that the Davidsons failed to meet the heightened pleading requirements for fraud. The court also reversed the dismissal of an unjust enrichment claim, which survived due to the reversal on the Sherman Law claim.
Court Description: Food Labeling. The panel affirmed the district court’s dismissal of plaintiffs’ fraud-based claims, and reversed the district court’s dismissal of plaintiffs’ California Sherman Law claim and unjust enrichment claim, in a putative class action challenging the labels on Sprout Foods, Inc.’s baby food pouches.
The Sherman Law, California’s analog to the federal Food Drug and Cosmetic Act (FDCA), incorporates by reference all federal food labeling standards, including a prohibition against labeling the front of baby food containers with the product’s nutrient content. Sprout produced pouches of baby food with labels on the front stating the amount of nutrients the pouches contained. Plaintiffs seek to represent a class of consumers who purchased Sprout’s products.
The panel held that federal law did not preempt private enforcement of the Sherman Law’s labeling requirements, and reversed the district court’s dismissal of plaintiffs’ Sherman Law claims. Although the FDCA provides, with limited exceptions, that the law can only be enforced by the federal government, the federal food labeling statute—the Nutrition Labeling and Education Act—permits states to enact labeling standards so long as they are identical to the federal standards. California has done that. Because plaintiffs were seeking to enforce the parallel state law that Congress intended states to enact, the district court should not have relied on authority preempting private enforcement of the federal law.
The panel affirmed the district court’s dismissal of plaintiffs’ fraud-based claims because the claims were subject to the heightened pleading requirements of Fed. R. Civ. P. 9, and the allegations failed to allege with particularity why the products were harmful.
In light of the reversal on the Sherman Law claim, the panel held that an additional unjust enrichment claim survived, and the panel reversed the district court’s dismissal of that claim.
Concurring in part and dissenting in part, Judge Collins would affirm the district court’s judgment dismissing the entire action. He agreed with the majority that plaintiffs’ fraud-based claims were properly dismissed as inadequately pleaded. He would further hold that plaintiffs’ remaining substantive claim—which attempted to use California state law to enforce a specific federal regulation concerning the labeling of toddler food products—was impliedly preempted because the relevant federal statute barred private enforcement of its provisions. He dissented to the extent that the majority reached a contrary conclusion and allowed the claim, and the related unjust enrichment claim, to proceed.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.