Organic-Milk Labels Meet Federal Standards; Court Dismisses Suits

Nineteen consolidated suits alleging that the nation's largest private-label producer of organic milk negligently mislabeled and sold regular milk as organic cannot proceed, a Missouri federal judge has ruled on federal supremacy grounds.

Judge E. Richard Webber of the U.S. District Court for the Eastern District of Missouri granted the motions to dismiss filed by Aurora Dairy and a number of retailers, finding that the plaintiffs' claims would make manufacturers liable under state law that differs from federal law.

With the Organic Foods Production Act of 1990, Congress established nationwide organic food standards and authorized the U.S. Department of Agriculture to certify plant operations to allow a company to use the "organic" label on its food.

The lawsuits alleged that between 2003 and 2007 Aurora Dairy did not follow the proper practices for an organic dairy and deceived customers by labeling its milk as organic.

The Boulder, Colo., company's misrepresentation caused customers to pay more for regular milk they believed was organic, the suits said.

The plaintiffs also alleged that retailers such as Wal-Mart, Costco and Target that contracted with Aurora to sell the milk under the stores' names should have ensured that the milk was organic.

Judge Webber ruled that the plaintiffs' claims would punish the dairy under state law claims even though it was complying with the standards of the federal Organic Foods Production Act, a violation of the principle that federal laws preempt state statutes.

The OFPA sets out how a food manufacturer is certified to use the organic label and the process for suspending or revoking the certification, the judge said.

Since the USDA never revoked or suspended Aurora's certification, the dairy was still authorized under federal law to label its milk organic, the dismissal order said.

Since the claims against the dairy were dismissed, the plaintiffs' claims against the retailers fail automatically. Judge Webber said the retailers simply contracted with Aurora and did not actually process the milk.

The judge went on to say the claims against the retailers would fail anyway because the retailers are exempt from the federal certification standards the plaintiffs allege were not met. The OFPA regulates only producers and handlers, not sellers, the judge said.

Finally, Judge Webber dismissed the plaintiffs' claim that the stores should have checked the dairy to ensure the milk was organic.

The OFPA does not allow for private investigations into the manufacturers, the judge said, the retailers are dependent upon the USDA's standardized certification under the law.

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