Court Chucks POM Wonderful Lawsuit Against FTC

WASHINGTON A federal judge in Washington, D.C. recently dismissed a lawsuit against the Federal Trade Commission by pomegranate juice maker POM Wonderful in a long-standing dispute between the parties that has spilled over into an appeal in a separate proceeding.

In the case before U.S. District Judge Richard W. Roberts, POM Wonderful had sought a declaratory judgment that an FTC-imposed rule governing advertising was invalid for a number of reasons. Roberts dismissed the case, finding that a ruling wouldn't resolve all the issues between the parties and noting that overlapping proceedings are pending due to an administrative complaint the FTC filed against POM Wonderful.

The judge also indicated POM Wonderful filed its case in September 2010 as a strategic measure because it anticipated it would soon face an FTC lawsuit.

The lawsuit came to fruition two weeks later when the FTC accused the company of false and misleading representations in connection with statements that its products could treat, prevent or reduce the risk of heart disease, prostrate cancer or erectile dysfunction.

During a hearing that commenced on May 24, 2011 and didn't end until Nov. 4, 2011, nearly 2,000 exhibits were admitted into evidence including dozens of scientific studies.

Earlier this year, the administrative law judge hearing the case found that POM Wonderful, its sister corporation Roll Global LLC and several principals violated federal law by making deceptive claims in advertisements. Citing expert testimony, Chief Administrative Law Judge D. Michael Chappell wrote "there was insufficient competent and reliable scientific evidence to support" certain claims that were at issue in the case.

The monster 335-page ruling was appealed, and the parties are awaiting a decision from the five-person commission at the FTC.

The spat between POM Wonderful -- the biggest U.S. processor and distributor of pomegranate products -- and the FTC dates back more than two years.

POM Wonderful filed a case against the FTC after the government agency required two other companies to meet certain criteria before making future health and disease-based representations, according to Roberts' opinion. In that lawsuit, POM Wonderful argued the FTC exceeded its statutory authority, violated the U.S. Constitution and was out of touch with the law for other reasons.