Opinion ID: 1464694
Heading Depth: 1
Heading Rank: 2

Heading: New York City Adopts Regulations Governing Calorie Labeling in Restaurants; NYSRA Challenges those Regulations.

Text: Seeking to combat rising rates of obesity and associated health care problems, in December 2006, the New York City Board of Health adopted the precursor to the current Regulation 81.50, by amending Article 81 of the Health Code and adding a new Section 81.50. The 2006 regulation, which was to become effective on July 1, 2007, mandated that any food service establishment voluntarily publishing calorie information post such information on its menus and menu boards. This regulation was met with vigorous objection from the restaurants and prompted many to stop voluntarily making such information available. On behalf of the restaurants, NYSRA subsequently sued the New York City Board of Health, the New York City Department of Health and Mental Hygiene, and Thomas R. Frieden (also appellees here, together New York City or the City) in the Southern District of New York. In a decision issued on September 11, 2007, the district court concluded that Regulation 81.50 as adopted was preempted by 21 U.S.C. § 343-1(a)(5)the claims preemption provisionbecause, to the extent it applied only to restaurants that had voluntarily provided calorie information, it regulated nutrient content claims. N.Y. State Rest. Ass'n v. N.Y. City Bd. of Health (N.Y.SRA I), 509 F.Supp.2d 351, 361-63 (S.D.N.Y.2007). However, in so holding, the district court stated that By making its requirements contingent on a voluntary claim, Regulation 81.50 directly implicates [Section] 343(r) and its corresponding preemption provision. New York City, although free to enact mandatory disclosure requirements of the nature sanctioned by [Section] 343(q) (and proposed or enacted in other jurisdictions), has adopted a regulatory approach that puts it in the heartland of [Section] 343(r) and has subjected its regulation to preemption under [Section] 343-1(a)(5). Id. at 363 (footnote omitted). Having decided for NYSRA on preemption, the district court did not reach NYSRA's First Amendment claim. Taking its cue from the district court's opinion, on January 22, 2008, the New York City Board of Health repealed and modified the 2006 regulation, producing the current version of Regulation 81.50. See Dep't of Health and Mental Hygiene Bd. of Health, Notice of Adoption of a Resolution to Repeal and Reenact § 81.50 of the New York City Health Code (Jan. 22, 2008) [hereinafter Notice of Adoption ]. [6] The revised Regulation 81.50 requires all chain restaurants with fifteen or more establishments nationally to make statements showing calorie content in the precise manner prescribed by the regulation. For those restaurants covered by the regulation, the calorie information must be presented clearly and conspicuously, adjacent or in close proximity to the menu item, and the font and format of calorie information must be as prominent in size and appearance as the name or price of the menu item. See Notice of Adoption at 12-14. Now, every time New Yorkers walk into or use the drive-through of certain chain restaurants, they are informed, for instance, that the taco salad contains 840 calories, the sausage and egg breakfast sandwich contains 450 calories, and the premium hamburger sandwich with mayonnaise contains 670 calories but without mayonnaise contains 510 calories. Regulation 81.50 expressly permits the restaurants to provide additional nutritional information and to provid[e] ... disclaimer[s] stating that there may be variations in calorie content values across servings based on slight variations in serving size, quantity of ingredients, or special ordering. Id. at 14. NYSRA's member restaurants, some of which already provided nutrition information to their customers, just not on their menus and menu boards, were not much happier with the City's latest effort at calorie disclosure on menus and menu boards specifically. They proposed alternatives to menu/menu board posting including signs directing consumers to nutrition information at the restaurants, posters, food wrappers, counter mats, stanchions, flip-charts, and brochures, with such information. Failing to convince the Citywhich concluded that customers often did not see the nutrition information already provided by the restaurants, see id. at 7-8of the superiority of these alternatives, NYSRA filed another action in the Southern District of New York, again seeking to declare the revised Regulation 81.50 preempted by federal law and/or unconstitutional, and to enjoin its enforcement; New York cross-moved for summary judgment on the preemption claim. Reasoning that Regulation 81.50 is not preempted by [the] NLEA because that statute explicitly leaves to state and local governments the power to impose mandatory nutrition labeling by restaurants, the district court rejected NYSRA's preemption challenge and granted the City summary judgment on this claim. N.Y. State Rest. Ass'n v. N.Y. City Bd. of Health (NYSRA II), No. 08cv1000, 2008 WL 1752455, at  (S.D.N.Y. Apr.16, 2008). NYSRA also asked the district court to conclude that Regulation 81.50 impermissibly infringed on its members' First Amendment rights. But, the district court instead concluded that the required disclosure of caloric information is reasonably related to the government's interest in providing consumers with accurate nutritional information and therefore does not unduly infringe on the First Amendment rights of NYSRA members. Id. NYSRA then appealed. It also sought a stay pending appeal, which we denied without prejudice to renewal at or after oral argument, based upon the City's representations that the no fines period would be extended. We set an expedited briefing schedule, and subsequently denied the renewed motion for a stay. N.Y. State Rest. Assoc. v. N.Y. City Bd. of Health, No. 08-1892-cv (2d Cir. Apr. 29, 2008, June 16, 2008) (orders denying stay). We held oral argument on June 12, 2008, during which we heard from counsel for NYSRA, the City, and the FDA.