Source: https://casetext.com/case/all-one-god-faith-v-organic-sustainable
Timestamp: 2019-04-23 10:50:07+00:00

Document:
Appeal from the Superior Court of the City and County of San Francisco, No. CGC-08-474701, John E. Munter, Judge.
Farella Braun Martell, John L. Cooper and Morgan T. Jackson for Plaintiff and Appellant.
First Amendment Project, David Greene and James R. Wheaton for Defendant and Appellant.
The federal government imposes mandatory standards governing the marketing of "organic" food and agricultural products, but provides only voluntary and permissive criteria for "organic" personal care products, such as soaps and lotions. ( 7 U.S.C. § 6501 et seq.; Organic Foods Production Act of 1990.) A trade association, Organic and Sustainable Industry Standards, Inc. (OASIS), seeks to develop a standard that would provide a definition of "organic" specific to beauty and personal care products and would permit its members whose products meet this standard to advertise using an "OASIS Organic" seal on the product. All One God Faith, Inc., who does business as Dr. Bronner's Magic Soaps (Dr. Bronner), filed suit against OASIS and certain of its members, alleging that this certification would constitute unfair competition and misleading advertising. OASIS filed a special motion to strike Dr. Bronner's claim against it pursuant to the anti-SLAPP statute, Code of Civil Procedure section 425.16. OASIS appeals from the trial court's denial of its motion. Dr. Bronner has filed a protective cross-appeal, contending that the motion should have also been denied under section 425.17. We affirm.
All further statutory references are to the Code of Civil Procedure unless otherwise specified.
The third cause of action also includes allegations against a French corporation, Ecocert, which Dr. Bronner alleges is improperly certifying beauty products as "organic" under its own standard. Ecocert did not join in the motion to strike and is not a party to this appeal.
As the FAC explains, "[t]he NOP criteria only govern personal care products that voluntarily represent or imply that they meet the NOP criteria or carry the USDA organic seal. The NOP regulations do not apply to personal care products that represent that they are organic but do not purport to comply with the NOP organic criteria and do not carry or imply that they carry the USDA organic seal." Under the NOP criteria, a personal care product labeled "Organic" must contain at least 95 percent organically produced ingredients (excluding water and salt) and the remaining ingredients must consist of approved nonagricultural substances or nonorganically produced agricultural products that are not commercially available in organic form. Furthermore, under the NOP criteria, a personal care product labeled "Organic" or "Made with Organic [specified ingredients]" cannot contain any cleansing or moisturizing agents made of synthetic petrochemicals or petrochemical compounds. Processes such as hydrogenation and sulfation are not permitted to produce such agents.
Dr. Bronner alleges that OASIS is a commercial trade association and that its members include many of the other named defendants, who sell competing personal care products. Dr. Bronner alleges that OASIS was designed to represent and promote the commercial goals of its member companies in their efforts to sell "organic" personal care products. According to Dr. Bronner's FAC, "[t]he primary immediate goal of OASIS has been to issue an industry standard for `organic' personal care products, and to promote the commercial and sales goals of its members in the marketplace seeking to sell body care products to consumers seeking to purchase organic products. In doing so, OASIS acts as the agent of its trade association members as to whose products OASIS promotes through its purported certifications."
In the first and second causes of action, Dr. Bronner alleges that defendants Estée Lauder, Hain Celestial, and Cosway (among others) have or will engage in unfair competition and misleading advertising by labeling their products as "Organic" or "Made with Organic ingredients."
We do not address any argument that the third cause of action is not justiciable. That argument is beyond the issues presented by the anti-SLAPP motion or by the parties on appeal.
OASIS moved to strike Dr. Bronner's third cause of action pursuant to section 425.16, arguing that OASIS was being sued for exercising its right to free speech — specifically, articulating and publishing its "OASIS Organic" standard. OASIS submitted a declaration from its volunteer chair of the board of directors, Gay Timmons (Timmons), which provides background information about OASIS.
OASIS is a mutual benefit trade association, organized under Internal Revenue Code section 501(c)(6), "formed in 2007 to promote the production of organic and sustainable health and beauty care products." OASIS does not produce or manufacture any cosmetic or personal care products, nor is it engaged, nor does it intend to be engaged, in the business of selling or leasing goods or services. OASIS aims to provide the following services: (1) "[d]evelop, maintain, and administer verifiable certification standards for health and beauty products"; (2) "[p]rovide a forum for educating and communicating to consumers and trade members of the health and beauty industry"; (3) "[p]articipate and advocate for its members in the global marketplace for international collaboration on standards for health and beauty products"; (4) "[s]erve as a link between interested industry producers and qualified suppliers"; and (5) "[c]ommunicate, interact, and collaborate with other agencies concerned with improving the sourcing and longterm environmental and health impact of [h]ealth and [b]eauty products. . . . [¶] . . . OASIS's members range from large, global brands and private label manufacturers of beauty and personal care products to small, specialty brands, raw ingredient manufacturers, and ingredient suppliers." The OASIS board is comprised of 10 members, three of whom are affiliated with defendants Cosway, Estée Lauder, or Hain Celestial. The declaration also explains that "[Estee] Lauder holds only one of the seats on the OASIS Board. OASIS is in no way dominated or controlled by [Estee] Lauder. Nor has [Estee] Lauder played the leading role in creating or promoting the `OASIS Organic' standard."
The declaration further provides that, for several months before the motion to strike was filed, OASIS had been working to develop an "OASIS Organic" standard that would provide a definition of "organic" specific to beauty and personal care products. At the time the motion to strike was filed, OASIS had not yet completed its formulation of the standard, but had released a series of draft standards to the industry and public, via its Web site, for comment. OASIS had also received approximately 50 inquiries from members of the public regarding its draft standards. Once the standard is finalized, those of OASIS's members "whose products meet the `OASIS Organic' standard, as determined by [a] third party certification agent, may then choose to advertise their products as meeting the `OASIS Organic' standard [by] displaying] the `OASIS Organic' certification mark on the product." The "OASIS Organic" seal appears as a circle, with the word "oasis" inside the circle, and the word "organic" appearing in larger font below the circle. If an OASIS member chooses to so advertise, it must "indicate that the `OASIS Organic' standard was employed, display the `OASIS Organic' certification mark on the product, and direct [its] consumers to the details of the standard." OASIS intends to publish the final standard to the general public so that the public has access to what "OASIS Organic" means.
The declaration states: "OASIS has adopted a certification mark for `OASIS Organic' that will be filed with the U.S. Patent and Trademark Office, along with the `OASIS Organic' standard, when the standard is finalized. . . ." A certification mark is "any word, name, symbol, or device, or any combination thereof — [¶] (1) used by a person other than its owner, or [¶] (2) which its owner has a bona fide intention to permit a person other than the owner to use in commerce and files an application to register on the principal register established by this chapter, [¶] to certify regional or other origin, material, mode of manufacture, quality, accuracy, or other characteristics of such person's goods or services or that the work or labor on the goods or services was performed by members of a union or other organization." ( 15 U.S.C. § 1127.) On this record, we simply do not know if OASIS will ultimately meet the requirements for registration of a certification mark. In fact, Dr. Bronner does not concede that OASIS will comply with the requirements for certification marks and suggests that it may petition for cancellation of OASIS's mark.
Nevertheless, Dr. Bronner's third cause of action is premised on the allegation that one or more of defendants plan to "imminently" label products as "certified `Organic' in accordance with the [OASIS] standard . . .," and OASIS agreed that in creating the OASIS organic seal it "is `certifying' as that term is used in the context of certification marks." In part II.B. and C. post, we base our decision on the record before the trial court.
At the time the motion to strike was filed, OASIS had not yet authorized any entity to use the "OASIS Organic" label and no product bearing the "OASIS Organic" seal was on the market, or likely to be on the market for at least several months. Timmons declares that OASIS itself does not currently certify, and does not plan to certify, any products. OASIS only intends to set the standard that will be employed by third party certification agents who will perform all product certification.
OASIS also submitted, in support of its motion to strike, three newspaper articles, dating from the 1970's, on the topics of "natural" and "organic" food and cosmetics.
Dr. Bronner opposed the motion to strike, arguing that it had not challenged speech "in connection with a public issue or an issue of public interest," as required by section 425.16. Alternatively, Dr. Bronner argued that OASIS's commercial speech was specifically exempted from the protections of the anti-SLAPP statute by section 425.17, subdivision (c).
The application also provides: "The By Laws of OASIS define that `voting' members must either be in the process to become certified for a product or have been certified." Voting membership fees range from $300 to $5,000. The suggested membership fee for a supporting member is $100.
By trial court order, not contained in the record but acknowledged by the parties, briefing and argument on the motion to strike was bifurcated, with the first portion of the hearing limited to the threshold question of whether OASIS's alleged conduct constituted an "act in furtherance of a person's right of petition or free speech under the United States or California Constitution in connection with a public issue."
On October 8, 2008, the court denied OASIS's motion to strike in an order stating only that the motion was denied (October 8 Order). OASIS filed a timely notice of appeal from the October 8 Order. Dr. Bronner filed a motion to dismiss the appeal, asserting that the trial court could have based its denial of the motion to strike on the commercial speech exemption contained in section 425.17. subdivision (c) and, if so, the October 8 Order was not appealable pursuant to section 425.17, subdivision (e). We deferred ruling on the motion to dismiss and ordered the trial court to file "an amended order clarifying the reason why it denied the motion to strike."
Section 425.16, subdivision (i) provides: "An order granting or denying a special motion to strike shall be appealable under Section 904.1." (See also § 904.1, subd. (a)(13).) However, section 425.17, subdivision (e) provides: "If any trial court denies a special motion to strike on the grounds that the action or cause of action is exempt pursuant to this section, the appeal provisions in subdivision (j) of Section 425.16 and paragraph (13) of subdivision (a) of Section 904.1 do not apply to that action or cause of action."
In response, the trial court filed an amended order (Amended Order), which clarifies that the motion to strike was denied under section 425.16 alone and was "not based in any part upon . . . section 425.17." The Amended Order further provides: "The alleged conduct of OASIS does not constitute an `act in furtherance of a person's right of petition or free speech under the United States or California Constitution in connection with a public issue' within the meaning of section 425.16. Authorities supporting that conclusion include Kasky v. Nike, Inc. (2002) 27 Cal.4th 939 [ 119 Cal.Rptr.2d 296, 45 P.3d 243], Nagel v. Twin Laboratories, Inc. (2003) 109 Cal.App.4th 39 [ 134 Cal.Rptr.2d 420], and Consumer Justice Center v. Trimedica International, Inc. (2003) 107 Cal.App.4th 595 [ 132 Cal.Rptr.2d 191]." With respect to section 425.17, the trial court stated: "The alleged conduct of OASIS does not fall under section 425.17[, subdivision] (c) because OASIS, while a trade group consisting of, and acting on behalf of, its members who are in the business of selling goods, is not itself `a person primarily engaged in the business of selling or leasing goods or services.' The plain language of section 425.17[, subdivision] (c) does not extend to trade associations not themselves engaged in the business of selling or leasing goods or services, and to this Court's knowledge there is no appellate decision holding or stating otherwise."
Thereafter, we denied Dr. Bronner's motion to dismiss OASIS's appeal. Dr. Bronner also filed a timely cross-appeal from the Amended Order. OASIS moved to dismiss Dr. Bronner's cross-appeal on the grounds that Dr. Bronner was not aggrieved by the Amended Order. We denied the motion.
While this case was being briefed, Dr. Bronner and OASIS each filed several requests for judicial notice, on which we deferred ruling. First, OASIS filed a request for judicial notice of various documents posted on the USDA's Web site regarding proceedings before the National Organic Standards Board. Dr. Bronner later filed its own request for judicial notice of the contents and existence of an article by Andrea Nagel, which appeared in the March 14, 2008 newspaper "Women's Wear Daily," entitled "Natural Personal Care to Get Standards." OASIS opposed this request, to the extent we were asked to take judicial notice of the truth of the matters contained within the article. Then, OASIS filed an unopposed request for judicial notice of (1) an index with links to public comments made in response to a notice of meeting of the National Organic Standards Board, discussing whether and how to adapt the NOP standards to cosmetics; (2) excerpts from the U.S. Patent and Trademark Office's Trademark Manual of Examining Procedure (5th ed.); and (3) the trial court's June 1, 2009 order on a motion for judgment on the pleadings filed by three other defendants. Finally, Dr. Bronner filed an opposed request for judicial notice of the following statement on OASIS's Web site: "The OASIS Seal promotes the marketing of [health and beauty] products." We deny Dr. Bronner's requests for judicial notice. The truth of the contents of the article and Web site are not proper matters for judicial notice, and the fact that the article and Web site were published is irrelevant to the issues before us. (See Zelig v. County of Los Angeles (2002) 27 Cal.4th 1112, 1141, fn. 6 [ 119 Cal.Rptr.2d 709, 45 P.3d 1171].) OASIS's requests for judicial notice are granted, in part. (Evid. Code, § 452, subd. (c).) We deny OASIS's request for judicial notice of the trial court's June 1, 2009 order on a motion for judgment on the pleadings because the order is irrelevant. ( Ketchum v. Moses (2001)24 Cal.4th 1122, 1135, fn. 1 [ 104 Cal.Rptr.2d 377, 17 P.3d 735] [material to be judicially noticed must be relevant].) OASIS's other requests for judicial notice are granted.
B. OASIS Has Not Met Its Burden of Showing That the Challenged Cause of Action Arises from Protected Activity Under the Anti-SLAPP Statute.
1. OASIS's certification activities are not in furtherance of its speech in connection with a public issue or issue of public interest.
"[T]he `arising from' requirement is not always easily met. [Citations.] The only means specified in section 425.16 by which a moving defendant can satisfy the requirement is to demonstrate that the defendant's conduct by which plaintiff claims to have been injured falls within one of the four categories described in subdivision (e), defining subdivision (b)'s phrase, `act in furtherance of a person's right of petition or free speech under the United States or California Constitution in connection with a public issue.' [Citation.]" ( Equilon, supra, 29 Cal.4th at p. 66.) Section 425.16, subdivision (e) provides: "As used in this section, `act in furtherance of a person's right of petition or free speech under the United States or California Constitution in connection with a public issue' includes: (1) any written or oral statement or writing made before a legislative, executive, or judicial proceeding, or any other official proceeding authorized by law; (2) any written or oral statement or writing made in connection with an issue under consideration or review by a legislative, executive, or judicial body, or any other official proceeding authorized by law; (3) any written or oral statement or writing made in a place open to the public or a public forum in connection with an issue of public interest; (4) or any other conduct in furtherance of the exercise of the constitutional right of petition or the constitutional right of free speech in connection with a public issue or an issue of public interest."
OASIS argues that subdivision (e)(4) of section 425.16, protecting "conduct in furtherance of the exercise of . . . the constitutional right of free speech in connection with a public issue or an issue of public interest," applies here. We disagree. As the Fourth Appellate District explained in Trimedica, "[w]hen the defendant's alleged acts fall under the first two prongs of section 425.16, subdivision (e) (speech or petitioning before a legislative, executive, judicial, or other official proceeding, or statements made in connection with an issue under review or consideration by an official body), the defendant is not required to independently demonstrate that the matter is a `public issue' within the statute's meaning. [Citation.] If, however, the defendant's alleged acts fall under the third or fourth prongs of subdivision (e), there is an express `issue of public interest' limitation. [Citation.]" ( Trimedica, supra, 107 Cal.App.4th at p. 600.) OASIS has not demonstrated that the "public interest" limitation is satisfied.
OASIS, in its opening brief, contends that it has been sued for its "opinion as to what makes a personal care product `organic'" or "the articulation and dissemination of the [`OASIS Organic'] standard." Accordingly, OASIS argues that Dr. Bronner's third cause of action attacks speech in connection with a public issue because "the speech was made during the course of an active public debate on the issue, a debate joined by governmental, commercial and consumer interests; the resolution of the issue will affect large numbers of people beyond the direct participants; the speech was developed with public input; the issue is neither broad nor amorphous and is the very conduct for which OASIS is being sued."
But, contrary to OASIS's assertion, Dr. Bronner's claims do not arise out of OASIS's articulation of the "OASIS Organic" standard in the abstract. Rather, Dr. Bronner's claims are based on the fact that OASIS will authorize its members, whose products meet the standard, to use the "OASIS Organic" seal on their products in the marketplace. In fact, OASIS will require those members who choose to advertise their products as meeting the "OASIS Organic" standard to display the "OASIS Organic" seal on their products. Dr. Bronner specifically alleges that it will be injured because "many consumers will be misled by the certification of products by the OASIS trade association as `Organic' to purchase such products rather than Dr. Bronner's soap products." (Italics added.) Accordingly, Dr. Bronner seeks to enjoin OASIS from certifying such products that meet the "OASIS Organic" standard, but not the NOP standard.
OASIS originally argued in its opening brief that it will not "certify" products as meeting the "OASIS Organic" standard, because that task will actually be performed by third party certifying agencies. However, in its reply brief, OASIS acknowledges that "it will set the terms for the use of the `OASIS Organic' seal and be the entity that ultimately authorizes a manufacturer to affix the seal on a product label." OASIS also agreed that "in so doing its [ sic] is `certifying' as that term is used in the context of certification marks."
In its reply brief, OASIS concedes that it is not being sued for articulating the "OASIS Organic" standard and that, instead, it "is being sued because it intends to make representations of fact about some of its members' `goods,' not its own." Nonetheless, OASIS argues that its "act of authorizing others to use the `OASIS Organic' seal is conduct in furtherance of OASIS's right to articulate and disseminate its statement of position as to the meaning of the word `organic'"
As we have indicated, while OASIS's articulation and dissemination of a standard regarding what makes a personal care product "organic" may constitute an exercise of its right of free speech on a matter of public concern, we do not agree that OASIS's certification of commercial products — the activities that Dr. Bronner seeks to enjoin — are in furtherance of that speech.
Here, unlike the conduct at issue in Lieberman, the articulation of the OASIS standard will necessarily be complete before OASIS certifies any member product. OASIS, and our dissenting colleague, fail to show how the application of an "OASIS Organic" seal on a particular product helps to advance or foster a debate that will have already occurred on the meaning of "organic" as used in the "OASIS Organic" seal, or that it will in some fashion contribute to a broader debate on the meaning of the term "organic." The "OASIS Organic" seal, when viewed by a consumer on a particular product, is merely a representation regarding the product's ingredients and quality. Although, OASIS states that it will require members using the seal to direct their consumers to the details of the standard, there is no indication in the record of how that will be achieved. Nor does Dr. Bronner challenge any such statements by its pleadings. While the existence of some standard may be a sine qua non to creation of a certification mark, the "OASIS Organic" seal itself does not include any discussion of what the standard is, so as to encourage or contribute to public debate on the issue. Furthermore, unlike the draft standards that have been published on OASIS's Web site, there is nothing in the record before us to indicate that use of the "OASIS Organic" seal on a product will invite comment from the public, that the discussion has been or will be more robust by virtue of the anticipated certification process, or that it is intended that the standard will necessarily "evolve over time" as the dissent suggests. (Dis. opn., post, at p. 1221, fn. 6.) The purpose of the "`OASIS Organic' seal" is to promote the sale of the product to which it is affixed, not the standard or its elements.
The dissent argues that interest in the formulation of the standard is logically "materially enhanced" by the fact that it will result in a product certification, and that the future act of product certification necessarily promotes interest and participation in the earlier debate over what the standard should be. (Dis. opn., post, at p. 1225.) Nothing reflected in the record before us validates that hypothesis, and simply to say that a logical nexus can be found between a protected activity and a consequential one with a different purpose expands, as the dissent appears to acknowledge, the "in furtherance" element of the anti-SLAPP statute beyond the boundaries recognized in any case to date. Furthermore, the dissent's hypothesis rests on the assumption that the future act of product certification will promote manufacturers' interest and participation in the debate over the standard. ( Ibid.) It fails to show how the consuming public's interest in the standard will be increased.
As the dissent notes, certification marks, such as the Good Housekeeping and Underwriters Laboratories seals of approval provide product information to consumers which "`saves buyers the trouble of investigating products themselves and the risk of trying untested products.'" (Dis. opn., post, at p. 1222; see id. at p. 1221, fn. 8; Consolidated Metal Prod. v. Amer. Petro. Institute (5th Cir. 1988) 846 F.2d 284, 296.) It is the marks themselves, as representations of quality, upon which consumers rely in purchasing decisions, and the well-established reputations of the entities which authorize them, not the standards upon which the product certifications are based. We are not persuaded that many, if any, consumers themselves investigate the basis for an Underwriter's Laboratories label upon a product, or offer comments on the testing protocols used to achieve it.
2. OASIS's commercial speech is not protected activity on an issue of public interest.
Dr. Bronner alleges that OASIS, by authorizing its members to use the "OASIS Organic" seal on products in the marketplace, will mislead consumers with respect to the products' ingredients. OASIS's own membership application provides: "Welcome to OASIS, an organization whose purpose is to support organic and sustainable Health Beauty consumer goods. OASIS meets the unprecedented consumer demand for reliable production standards for companies pursuing a greater share of the Organic and Sustainable Market." (Boldface omitted.) It also states: "The OASIS seal provides assurance to the consumer of credible value for organic and sustainable claims on OASIS products." (Italics omitted.) In fact, OASIS concedes that its speech is commercial speech, under the test announced in Kasky, and that it "seeks to promote its members['] general business interest" through the "OASIS Organic" seal.
OASIS would have us ignore this context. OASIS's reliance on Dible, supra, 170 Cal.App.4th at page 851, is misplaced. The Dible court did observe: " If the actionable communication fits within the definition contained in the statute, the motive of the communicator does not matter. [Citation.]" (Italics added.) But, in that case, the reviewing court determined that the defendant's speech about a former employee, made to the Employment Development Department, qualified "as statements made `before a legislative, executive, or judicial proceeding, or any other official proceeding' (§ 425.16, subd. (e)(1)) or made `in connection with an issue under consideration or review' by such (§ 425.16, subd. (e)(2))." ( Dible, supra, 170 Cal.App.4th at p. 850.) Accordingly, the speech was not required to be on a topic of public interest. ( Ibid.) In any event, our conclusion that section 425.16 does not apply is based on the nature of OASIS's activity, rather than OASIS's motivations for its actions.
The above authority makes clear that the mere fact that a large number of people may be affected by advertising does not, standing alone, satisfy the public interest requirement. ( Nagel, supra, 109 Cal.App.4th at p. 50; DuPont, supra, 78 Cal.App.4th at p. 567.) Rather, the inquiry is whether the unprotected advertising speech is inextricably intertwined with protected speech informing the consuming public and furthering political debate on a matter of public interest. ( Nagel, supra, 109 Cal.App.4th at p. 50.) In this case, the use of the "OASIS Organic" seal on member products is not activity directed to public discussion of organic standards in general, but is only speech about the contents and quality of the product. As discussed above, it is not intertwined with speech about, or contributing to the debate on, the merits of a particular definition of "organic."
No subsequent case has found the public interest requirement to be met by adopting this approach.
The fact that the "OASIS Organic" seal will be placed on some member products, rather than its own products, does not automatically, as OASIS asserts, transform its certification activities into "a statement about the larger issue of `organic' health and beauty care products." "The nature of the communication is not changed when a group of sellers joins in advertising their common product." ( National Com `n on Egg Nutrition v. F.T. C. (7th Cir. 1977) 570 F.2d 157, 163 [discussing whether statements by trade association formed by members of egg industry were commercial speech]; see also Bolger v. Youngs Drug Products Corp. (1983) 463 U.S. 60, 66, fn. 13 [ 77 L.Ed.2d 469, 103 S.Ct. 2875].) As noted above, OASIS concedes that its speech is commercial speech and that it "seeks to promote its members['] general business interest" through the "OASIS Organic" seal. Although OASIS disavows any intent to endorse "any particular product" in the future, it concedes that only the products of its paying members, who meet the standard, may advertise with the "OASIS Organic" seal. And, OASIS concedes that "only those [members] who plan to use the seal are eligible to become voting members of OASIS. . . ." (Italics omitted.) Thus, we are not talking about true third party endorsement or criticism, in the nature of consumer protection information, as OASIS suggests in its reply brief. Since the certification activities of OASIS in question here are clearly designed to facilitate commerce in the products bearing its seal, it has presented no compelling reason to distinguish this case from Nagel, Trimedica, or Scott.
Because the "issue of public interest" requirement is not met here, the trial court correctly concluded that section 425.16 does not apply to Dr. Bronner's cause of action against OASIS.
C. Section 425.17 Does Not Provide an Alternate Basis for Denial of the Motion to Strike.
The parties disagree about whether OASIS is "a person primarily engaged in the business of selling or leasing goods or services" under section 425.17, subdivision (c). The trial court determined that it was not. It is undisputed that OASIS's members are in the business of selling goods and that OASIS, as a nonprofit trade association, acts on its members' behalf. As the trial court observed, whether section 425.17, subdivision (c) applies to such an organization is a question of first impression. We conclude that the plain language of subdivision (c) makes clear that the exception does not apply here.
The exception, provided in section 425.17, subdivision (c), is limited, in relevant part, to "any cause of action brought against a person primarily engaged in the business of selling or leasing goods or services, including, but not limited to, insurance, securities, or financial instruments, arising from any statement or conduct by that person . . . ." (Italics added.) Thus, the plain language makes clear that the speaker must be "a person primarily engaged in the business of selling or leasing goods or services. . . ." (§ 425.17, subd. (c).) The Timmons declaration specifically provides: "OASIS does not produce or manufacture any cosmetic or personal care products. OASIS has no intention to produce or manufacture any products. OASIS does not engage, and does not intend to engage in the future, in the business of selling or leasing goods or services." The allegations of Dr. Bronner's FAC are not inconsistent. Although Dr. Bronner alleges that the "OASIS Organic" standard's development has been "promoted principally by Defendant [Estee] Lauder," the FAC is nonetheless clear that it is Dr. Bronner's competitors' products, not OASIS's, that will be sold under the "OASIS Organic" seal.
OASIS also argues that, because it plans to register the "OASIS Organic" seal as a certification mark, it would be forbidden from using the "OASIS Organic" seal on its own products. A certification mark may be cancelled if the owner produces or markets goods to which the mark is applied, permits use of the mark for purposes other than to certify, or discriminately refuses to certify the goods of any person who maintains the standard the mark signifies. ( 15 U.S.C. § 1064(5); State of Idaho Potato v.GT Terminal Pack. (9th Cir. 2005) 425 F.3d 708, 716.) As noted above, we base our decision on the record before the trial court.
We need not address Dr. Bronner's new theory that OASIS is primarily engaged in the business of selling its certification services to its member companies and that the challenged statements were "made in the course of delivering [OASIS's] . . . services." (§ 425.17, subd. (c)(1).) Dr. Bronner did not raise this argument before the trial court and has forfeited the right to raise it on appeal. We also reject Dr. Bronner's unsupported argument that "[olnce OASIS authorizes . . . the members of its trade group to use its registered certification mark on a product label . . . OASIS adopts those goods as its own within the meaning of section 425.17[, subdivision 1(c)(1)."
Accordingly, we agree with the trial court's conclusion that "OASIS does not fall under section 425.17[, subdivision] (c) because OASIS . . . is not itself `a person primarily engaged in the business of selling or leasing goods or services.'"
When "legislative intent is expressed in unambiguous terms, we must treat the statutory language as conclusive; `no resort to extrinsic aids is necessary or proper.' [Citation.]" ( Equilon, supra, 29 Cal.4th at p. 61.) Here, however, the legislative history of section 425.17 supports our conclusion.
These earlier bills originally proposed language that differs significantly from that ultimately enacted by Senate Bill No. 515 (2003-2004 Reg. Sess.). (Compare Stats. 2003, ch. 338, § 1 with Assem. Amend, to Sen. Bill No. 789 (2001-2002 Reg. Sess.) Aug. 15, 2002, and Sen. Amend, to Sen. Bill No. 1651 (2001-2002 Reg. Sess.) May 21, 2002.) For example, Senate Bill No. 1651 proposed, in relevant part: "(d)(1) [Section 425.16] does not apply to any of the following: [¶] . . . [¶] (B) Any cause of action against any manufacturer, wholesaler, retailer, or other entity involved in the stream of commerce, arising from any statement, representation, conduct, label, advertising, or other communication, made in regard to the product, services, or business operations of that person or entity, or any competitor." (Sen. Amend. to Sen. Bill No. 1651 (2001-2002 Reg. Sess.) May 21, 2002, italics added; accord, Assem. Amend, to Sen. Bill No. 789 (2001-2002 Reg. Sess.) Aug. 15, 2002.) Had the Legislature intended that speech by someone merely involved in the stream of commerce be subject to the exception, it would not have revised the originally proposed statutory language.
Rather than suggesting an intent to adopt the Kasky test in toto, it appears that the Legislature only intended to "closely track" Kasky's guidelines. (Assem. Com. on Judiciary, Analysis of Sen. Bill No. 789 (2001-2002 Reg. Sess.) as amended Aug. 26, 2002, pp. 8-9; see Assem. Com. on Judiciary, Analysis of Sen. Bill No. 515 (2003-2004 Reg. Sess.) as amended June 27, 2003, p. 10.) It is significant that the Legislature adopted Kasky's expansive language on the intended audience prong, but did not adopt similarly expansive language with respect to the speaker requirement, despite having Kasky's text before it. Our Legislature apparently determined the statute's requirements to be appropriate, finding it unnecessary to add the "someone acting on behalf of language that Dr. Bronner proposes. We cannot second-guess the Legislature's policy judgment.
For the foregoing reasons, we conclude that OASIS is not "a person primarily engaged in the business of selling or leasing goods or services," and the speaker requirement of section 425.17, subdivision (c) is not met here. We do not address the requirements of section 425.17, subdivision (c)(1) or (2).
The order denying the special motion to strike is affirmed. Dr. Bronner's cross-appeal is denied. Dr. Bronner is to recover its costs on appeal.
The trial court rejected the motion to strike (Code Civ. Proc., § 425.16) of appellant Organic and Sustainable Industry Standards, Inc. (OASIS), under the first prong of the anti-SLAPP statute's two-prong analysis. Because I believe the trial court erred in concluding that OASIS's role in the certification process is not conduct "in furtherance of [OASIS's] right of petition or free speech under the United States Constitution or the California Constitution in connection with a public issue" (§ 425.16, subd. (b)(1)), I respectfully dissent.
All further undesignated section references are to the Code of Civil Procedure.
SLAPP is an acronym for strategic lawsuit against public participation.
As the majority postulates, OASIS's effort to formulate a definition of "organic" for personal care products is distinct from the certification process. (Maj. opn., ante, at p. 1200.) That process will occur following determination of the "OASIS organic standard" and will entail OASIS authorizing a third party certification agent to determine if a particular product satisfies the OASIS organic standard; if so, that product may be imprinted with the "OASIS Organic" seal. Because OASIS contends its role in the certification process is "conduct in furtherance of the exercise of the constitutional right of petition or the constitutional right of free speech in connection with a public issue or an issue of public interest" (§ 425.16, subd. (e)(4)), it is appropriate to examine whether the formulation of a standard for organic is an exercise of the right of free speech on an issue of public interest.
There is little dispute that the formulation of a standard for organic personal care products is protected speech. The majority appears to acknowledge this (maj. opn., ante, at pp. 1200, 1202-1203, 1205) and respondent All One God Faith, Inc., doing business as Dr. Bronner's Magic Soaps (Dr. Bronner), seems to concede the point in its brief. In any event, the formulation of the standard is clearly speech on an issue of public interest, protected under the first prong of section 425.16. Consumer interest in organic products is currently high, but no consensus exists on the definition of the term "organic." The federal government imposes mandatory standards for the marketing of organic food and agricultural products. But the USDA NOP, established under the Organic Foods Production Act of 1990 ( 7 U.S.C. § 6501 et seq.), provides only voluntary and permissive criteria for organic personal care products, like soaps and lotions. According to the first amended complaint, the NOP standards regarding these products differ from the OASIS organic standard.
For example, exhibit H of OASIS's August 21, 2009 request for judicial notice shows that around 400 comments were received in response to notice of a May 2009 meeting of the National Organic Standards Board for the United States Department of Agriculture (USDA) National Organic Program (NOP), at which the board discussed whether to adapt the organic food standards to cosmetics.
According to the first amended complaint, "The NOP criteria only govern personal care products that voluntarily represent or imply that they meet the NOP criteria or carry the USDA organic seal. The NOP regulations do not apply to personal care products that represent that they are organic but do not purport to comply with the NOP organic criteria and do not carry or imply that they carry the USDA organic seal."
After the OASIS organic standard is finalized, OASIS will authorize third party certification agents to determine if products comply with the standard. If so, OASIS will authorize the products' manufacturers to affix the OASIS Organic seal to their products. Dr. Bronner seeks to enjoin OASIS's role in this certification process. After consideration of the purpose of certification marks, I address why OASIS's role in certifying a product should be protected under the first prong of the anti-SLAPP statute.
I do not mean to imply that the standard may not evolve over time.
Though the United States Patent and Trademark Office has not yet issued a certification mark to OASIS, this case rests on the assumption that it will. For example, the opening paragraph of Dr. Bronner's brief in this court states: "OASIS will make its challenged statements by authorizing and indeed requiring its members to use, on product labels, OASIS' registered certification mark, which prominently features the word `organic'"
A "certification mark" is "any word, name, symbol, or device, or any combination thereof — [¶] (1) used by a person other than its owner, or [¶] (2) which its owner has a bona fide intention to permit a person other than the owner to use in commerce and files an application to register on the principal register established by this chapter, [¶] to certify regional or other origin, material, mode of manufacture, quality, accuracy, or other characteristics of such person's goods or services or that the work or labor on the goods or services was performed by members of a union or other organization." ( 15 U.S.C. § 1127.) The statute creates three types of certification marks, one of which, like the OASIS Organic seal, is designed to certify the quality of goods or services. "The mark certifies that the goods or services tested meet certain standards or conditions. . . ." (3 McCarthy on Trademarks and Unfair Competition (4th ed. 2009) § 19:91 (McCarthy).) "The owner of the certification mark sets its standards and then must, through advertising, convince buyers that the certification symbol provides reliable and useful information." ( Ibid.
Other certification marks designed to certify the quality of goods include the "UL" (Underwriters Laboratories) seal, which certifies compliance with safety standards ( Midwest Plastic v. Underwriters Laboratories (Fed. Cir. 1990) 906 F.2d 1568, 1569), and the "Good Housekeeping" seal ( Jos. S. Cohen Sons Co. v. Hearst Magazines (C.C.P.A. 1955) 220 F.2d 763, 765).
http://tess2.uspto.gov/tmdb/tmep/1300.htm (as of Apr. 13, 2010).
Unlike the negative messages protected in Carver and Wilbanks, a certification mark conveys a positive message: a party independent of the producer certifies that the product meets a particular standard. (See TMEP, supra, § 1306.01(b) [stating that the "message conveyed" by a mark is that the goods have been inspected and determined to satisfy the certifier's standard of quality].) This message should be protected by the anti-SLAPP statute. The majority concludes consumers do not care about the standards underlying product certifications. (Maj. opn., ante, at pp. 1204-1205, fn. 16.) But this argument proves too much. It challenges the underlying rationale for marks certifying quality: informing consumers that the product has certain characteristics. (TMEP, supra, § 1306.01(b).) The facts of this case underline the majority's error. If consumers interested in purchasing an organic soap see one product carrying a government-sanctioned USDA organic seal and a competitor's product carrying an OASIS Organic seal, why should this court assume consumers would have no interest in ascertaining what standard the OASIS Organic seal represents?
Because under the federal scheme the purpose of the OASIS certification mark is to provide useful consumer information, those who disagree with the standard should be subject to the anti-SLAPP statute if they file suit against the owner of the certification mark for authorizing use of the mark.
Of course, Dr. Bronner alleges the OASIS mark is false and misleading. However, the plaintiffs in Carver and Wilbanks, who sued the defendants for defamation, also alleged the statements at issue were false. As I will explain in part III. ( post, at p. 1227), Dr. Bronner's allegations about the merits of the OASIS definition of organic are properly addressed in the second prong of the section 425.16 analysis.
For two related reasons, the OASIS certification process satisfies the Lieberman definition of "in furtherance." OASIS is currently formulating a definition of organic for personal care products. Logically, interest in that formulation is materially enhanced by the fact that this standard will be "attached" to certain products through use of the OASIS Organic seal. The cost and effort undertaken to lobby OASIS on its standard or, for that matter, to pursue this lawsuit, may be substantial. If the standard, once finalized, were to be relegated to a single press release or even permanent placement on the OASIS Web site, it would generate far less attention among consumers, and, therefore, those who wish to influence them. In sum, the future act, certifying that certain products achieve a specific standard, promotes interest and participation in the earlier debate over what that standard should be.
Further, the certification process creates ongoing interest in the standard. That is, in addition to promoting sales of a product, affixing the OASIS Organic seal to that product promotes the standard and generates interest in its content. (See 3 McCarthy, supra, § 19:91 [noting that the owner of the mark must promote it to convince consumers of the reliability and utility of the mark].) As discussed above, use of the OASIS Organic seal will generate significantly more consumer interest in OASIS's definition of organic than the definition would receive were it relegated to OASIS's Web site.
The majority states that it is "not necessary" for OASIS to authorize use of a certification mark to express its views on what constitutes an organic product because "that goal will otherwise be achieved by the articulation of the standard . . . ." (Maj. opn., ante, at p. 1205.) However, section 425.16, subdivision (e)(4), brings within the statutory scheme all conduct in furtherance of speech on an issue of public interest. Nothing suggests the Legislature intended courts to protect only such conduct deemed "necessary" for the speaker to express his or her view. Thus, the majority's approach is contrary to the plain language of the statute. The majority's approach is also at odds with the well-established proposition that the right to free speech includes the right to choose the means of expression; "[v]arious means of expression are not fungible." ( Gonzales v. Superior Court (1986) 180 Cal.App.3d 1116, 1127 [ 226 Cal.Rptr. 164]; see also, e.g., Reno v. American Civil Liberties Union (1997) 521 U.S. 844, 880 [ 138 L.Ed.2d 874, 117 S.Ct. 2329]; City of National City v. Wiener (1992) 3 Cal.4th 832, 848, fn. 11 [ 12 Cal.Rptr.2d 701, 838 P.2d 223].) In this case, OASIS reasonably could have concluded that the certification process would be a particularly effective way to achieve widespread public acceptance of its standard.
Dr. Bronner asserts that California appellate cases have consistently held that "promotional statements on product labels and in advertising that are designed to sell products . . . are not speech `in connection with a public issue or an issue of public interest' within the meaning of the anti-SLAPP statute." But in addition to promoting a product, the OASIS Organic seal advocates for the OASIS organic standard, distinguishing this case from those cited by Dr. Bronner.
Dr. Bronner's reliance on these particular cases reflects a fundamental misunderstanding of the role played by certification marks, like the one at issue here. The OASIS Organic seal, applied only after approval by an independent inspector, provides useful consumer information and promotes the OASIS definition of organic, a topic of substantial public interest. A manufacturer's act of placing information on a label touting its own product is typically for the purpose of marketing the product and not in furtherance of the manufacturer's speech on a larger issue of public interest. In contrast, OASIS's interest is in public acceptance of its standard, not the sale of any particular product. For these reasons, Scott, Nagel, and Consumer Justice Center are inapposite.
We are not confronted in this appeal with the question of whether a manufacturer's act of applying the OASIS Organic seal to a product would constitute protected conduct under section 425.16.
In this case, Dr. Bronner contends the OASIS Organic seal will constitute a false and misleading representation that the contents of the products to which it is affixed are organic. Dr. Bronner alleges the OASIS organic standard is contrary to reasonable consumer expectations that, for example, organic personal care products do not contain any petrochemicals, synthetic preservatives, or cleansing agents derived from conventionally produced agricultural materials. A conclusion that OASIS's role in the certification process is protected under the anti-SLAPP statute would not immunize OASIS from liability for any false or misleading aspects of its certification mark. (See Kasky v. Nike, Inc. (2002) 27 Cal.4th 939, 953 [ 119 Cal.Rptr.2d 296, 45 P.3d 243] ["commercial speech that is false or misleading is not entitled to First Amendment protection and `may be prohibited entirely' "].) Instead, Dr. Bronner's allegations are relevant only to the second prong of the anti-SLAPP statute's analysis, which considers whether the plaintiff has shown a probability of prevailing. (See Fox Searchlight Pictures, Inc. v. Paladino (2001) 89 Cal.App.4th 294, 305 [ 106 Cal.Rptr.2d 906] ["The problem with [the plaintiffs] argument is that it confuses the threshold question of whether the SLAPP statute applies with the question whether [the plaintiff] has established a probability of success on the merits."].) If Dr. Bronner is able to establish a probability of prevailing on its claim that application of the OASIS Organic seal will violate the unfair competition law (Bus. Prof. Code, § 17200 et seq.), it will prevail. I would reverse and remand for the purpose of allowing the trial court to consider that second prong under section 425.16.
The petition of appellant All One God Faith, Inc., for review by the Supreme Court was denied July 28, 2010, S182848. George, C. J., did not participate therein. Corrigan, J., was of the opinion that the petition should be granted.

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