Scholder v. Riviana Foods, Inc.

Riviana Foods, Inc. (Riviana) (defendant) sold dry-pasta products that were labeled as “All Natural.” Jason Scholder (plaintiff) sued Riviana in federal court in New York, alleging that Riviana had violated New York’s consumer-protection statute because Riviana’s pasta products actually contained trace amounts of herbicide. The federal Food and Drug Administration (FDA) had not adopted a formal definition of the term “natural.” Existing FDA guidance indicated that the term “natural” on the labels of food products for humans signified that nothing artificial or synthetic had been included in the food, but the term was not intended to cover the use of pesticides during the food-production process. When parties started litigating cases concerning whether food products that contained bioengineered ingredients could be labeled as “natural,” some federal courts asked the FDA to update the labeling guidance. The FDA commenced a rulemaking process and sought information and comments from the public and the food industry concerning the use of the term “natural” in human-food-product labeling. Specifically, the FDA asked for comments regarding issues including (1) whether the term “natural” should encompass agricultural-production practices like pesticide use, (2) whether the term “natural” should encompass food-manufacturing methods, and (3) whether consumers associate the term “natural” with the terms “healthy” or “organic.” After the notice-and-comment period ended, while the FDA’s rulemaking process was ongoing, Riviana moved to dismiss Scholder’s complaint for failure to state a claim. Riviana asserted that the pasta labels complied with the FDA’s existing federal guidance regarding the term “natural,” which was a complete defense to liability under New York law.