Justices: Coke's pomegranate juice not the real thing

WASHINGTON — The Supreme Court ruled Thursday that a pomegranate by any other name could be a cheat.

The justices said Coca-Cola can be sued for false advertising by labeling as "Pomegranate Blueberry Flavored Blend of 5 Juices" a drink containing just 0.3% pomegranate juice.

Their decision was a victory for POM Wonderful, makers of 100% pomegranate juice, as well as pomegranate lovers everywhere. POM had sued Coke, makers of Minute Maid juices, under a 1946 law intended to prevent companies from claiming that impostors are the real thing.

Justice Anthony Kennedy's opinion cited Coke's "practices that allegedly mislead and trick consumers, all to the injury of competitors."

The 8-0 ruling (Justice Stephen Breyer recused himself) is likely to have a broader impact on the clash between free enterprise and false advertising.

"Food and beverage companies should really start rethinking their labels at this point, to the extent that they are relying on the current guidelines that allow for the kind of language that Coca-Cola has been employing," said David Ter Molen, a lawyer and author of the Food Identity Blog.

"We can expect more vigorous litigation between competitors, as well as more class actions arising from consumer product labeling issues," said Dan Silverman, former general counsel at POM Wonderful.

The case pitted two federal laws against each other. POM cited the Lanham Act, which permits a competitor to sue for false or misleading advertising. Coke relied on the Food, Drug and Cosmetic Act, which prohibits misbranding and is enforced by Food and Drug Administration (FDA) regulations.

The relatively dry ruling (for such a juicy case): Agency regulations cannot render the false advertising law impotent.

POM's attorney, Seth Waxman, had contended during oral arguments in April that Coke's product contains just an "eye-dropper" of pomegranate juice. "It amounts to a teaspoon in a half gallon" of what otherwise is mostly less expensive apple and grape juices, he said.

Coke argued that FDA regulations permit naming products by their minority contents. It said the FDA had the ultimate authority in this area, not state governments.

But that argument didn't convince the justices, who said the FDA's main role is overseeing health and safety, not the marketplace.

Kennedy, whose California roots also are home to the victorious pomegranate, called Coke's label "misleading" and "deceptive" during oral arguments. He went so far as to admit he himself had been duped.

"Don't make me feel bad," Kennedy said, "because I thought that this was pomegranate juice."

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Correction: An earlier version of this story had the wrong date for the ruling.