Hain Celestial Can’t Escape Class Action Over Jason, Avalon Organics

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A federal judge overseeing a class action lawsuit accusing Hain Celestial Group Inc. of falsely advertising that its Avalon Organics and Jason brand cosmetics are “pure” and “organic” has rejected a bid by the company to dismiss the case.

U.S. Magistrate Judge Laurel Beeler ruled Feb. 10 that Hain Celestial could not bock the class action lawsuit based on a decision by the California Department of Public Health’s decision not to pursue an investigation or legal proceeding against the company, saying there’s difference between a state agency’s conclusion following an investigation compared to its decision not to launch a full-scale probe.

Plaintiffs initially filed the Hain Celestial class action lawsuit in 2011, alleging that the company listed its Jason and Avalon products as organic although their composition is less than 70 percent natural materials, an alleged violation of California’s Organic Products Act. The statute allows state residents to pursue damages when a company violates the organic product regulations set by the federal government.

Hain Celestial had argued in its latest motion for summary judgment that the actions of the California Department of Public Health took precedence over the actions of private citizens trying to pursue damages through the class action lawsuit. The company’s legal team noted that the CDPH had been in contact with corporate officials regarding the composition of their Avalon Organics products and decided not to proceed.

Judge Beeler drew a distinction between a concluded investigation and the decision not to throw resources at the problem of organic cosmetics mislabeling, writing “that the CDPH’s Notice (A) was only an informal “notice” – issued at the end of CDPH’s informal inquiry about a possible COPA violation – of the agency’s decision not to pursue further action, and (B) does not preclude Plaintiffs’ COPA claim in this lawsuit.”

The decision to deny summary judgment goes on to note three factors that go to the informality of the investigation, noting that the Department of Public Health regularly sends similar notices to companies like Hain Celestial Group, and that the investigators took the evidence the company provided on the face and did not seek other submissions. As a result, any agency decision using this process could not be “a formal adjudication.”

There are also no similar instances where such a process constituted a binding decision that prevented injunctive relief on the part of consumers, the document concluded. As a result, the Hain Celestial class action lawsuit regarding Avalon Organics and Jason cosmetic products can proceed on violations of the Organic Products Act and other state statutes providing consumer protections.

Counts against the company regarding the organic cosmetics mislabeling beyond COPA include violations of the state Unfair Competition Law, Consumer Legal Remedies Act and breaches of express warranties as codified by the state legislature.

The plaintiffs are represented by class action attorneys Mark N. Todzo, Howard Hirsch and Lucas Williams of Lexington Law Group.

The Hain Celestial Class Action Lawsuit is Brown et al. v. The Hain Celestial Group Inc., Case No. 11-cv-03082, in the U.S. District Court, Northern District of California.

UPDATE: A website for the Hain Celestial class action lawsuit has been established, and a trial date has been set for Aug. 6, 2015. Click here or visit www.HainOrganicCosmeticsLawsuit.com for more information.

UPDATE 2: A settlement has been reached in the JASON/Avalon Organics class action lawsuit, according to court documents filed on Sept. 22, 2015.

UPDATE 3: Claim filing instructions for the JASON/Avalon Organics settlement are now available!

UPDATE 4: On Oct. 15, 2016, Top Class Actions viewers who submitted timely and valid claims for the Hain Celestial JASON, Avalon Organics class action settlement started receiving checks worth as much as $93! Congratulations to all our readers who filed a claim and got PAID!