Ca_Law

case_law | United States Federal

FDA v. Wages and White Lion Investments, LLC

Summary

The Fifth Circuit erred in setting aside as arbitrary and capricious the FDA’s orders denying respondents’ applications for authorization to market new e-cigarette products pursuant to The Family Smoking Prevention and Tobacco Control Act of 2009; the Fifth Circuit also relied on an incorrect standard to reject the FDA’s claim of harmless error regarding the agency’s failure to consider marketing plans submitted by respondents.

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Retrieval chunks

  • #1

    PRELIMINARY PRINT Volume 604 U. S. Part 2 Pages 542–592 OFFICIAL REPORTS OF THE SUPREME COURT April 2, 2025 REBECCA A. WOMELDORF reporter of decisions Page Proof Pending Publication NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to noti…

  • #2

    likelihood that users of existing tobacco products will stop using those products and that non-users will start using them. § 387j(c)(4). In 2016, in response to the surging youth demand for favored prod- ucts, the FDA deemed e-cigarettes “tobacco products.” Given that most e-cigarette products were not marketed i…

  • #3

    evidence that their dessert-, candy-, and fruit-favored products had benefts over tobacco-favored products. Despite previously describing marketing plans as “critical,” the FDA decided “for the sake of eff- ciency” not to evaluate respondents' marketing plans. To each denial order, the FDA appended a “Technical Pr…

  • #4

    as long as they provide a reasoned explanation for the change,” “ `display awareness that [they are] changing position,' ” and consider “ `serious reliance interests.' ” Encino Motorcars, LLC v. Navarro, 579 U. S. 211, 221–222 (quoting FCC v. Fox Television Stations, Inc., 556 U. S. 502, 515). This doctrine asks t…

  • #5

    ent with its predecisional guidance. The TCA expressly contemplates comparisons of different tobacco products, and the FDA's guidance elab- orated on the types of comparisons that would be helpful. The FDA's 2019 guidance recommended that a manufacturer “compare the health risks of its product to both products wit…

  • #6

    Fifth Circuit rejected the FDA's harmless-error argument, relying on this Court's decision in Calcutt for the proposition that “APA errors are only harmless where the agency would be required to take the same action no matter what. In all other cases, an agency cannot avoid re- mand.” 90 F. 4th 357, 390. The Cour…

  • #7

    Deputy Solicitor General Gannon argued the cause for petitioner. With him on the briefs were Solicitor General Prelogar, Principal Deputy Assistant Attorney General Boynton, Vivek Suri, Joshua M. Koppel, Catherine Padhi, Samuel R. Bagenstos, and Wendy S. Vicente. Eric N. Heyer argued the cause for respondents. Wi…

  • #8

    Carter G. Phillips and Peter A. Bruland fled a brief for the Global Action To End Smoking, Inc., as amicus curiae . Page Proof Pending Publication 548 FD A v. WAGES AND WHITE LION INVESTMENTS, LLC Opinion of the Court Justice Alito delivered the opinion of the Court. This case concerns the efforts of the Food an…

  • #9

    cle of food or drugs which is adulterated or misbranded.” Ch. 3915, § 2, 34 Stat. 768. That Act also vested important responsibility in the precursor to the FDA, the Bureau of Chemistry in the U. S. Department of Agriculture. § 4, id., at 769. But early in its tenure, the Bureau disclaimed any authority to regula…

  • #10

    tobacco products fell within the FDA's jurisdiction. See A. Boeckman, An Exercise in Administrative Creativity: The FDA's Assertion of Jurisdiction Over Tobacco, 45 Cath. U. L. Rev. 991, 1015 (1996). Thus, during the frst 60 years after the FDCA's enactment, the FDA (like the Chemistry Bureau) repeatedly stated t…

  • #11

    ity to regulate “any other tobacco products” that the FDA “by regulation deems” to meet the defnition of a tobacco product. Ibid. The TCA's reach was broad. While the Act barred the FDA from banning all regulated tobacco products outright or requiring manufacturers to reduce nicotine yields to zero, see § 387g(d…

  • #12

    other “valid scientifc evidence” that is “suffcient to evaluate the tobacco product.” § 387j(c)(5). The FDA must act “[a]s promptly as possible” on a pre- market tobacco product application and “in no event later than 180 days after the receipt of an application.” § 387j(c)(1)(A). If the FDA denies an application…

  • #13

    Global Action To End Smoking, Inc., as Amicus Curiae 14 (internal quotation marks omitted). In contrast, an e- cigarette contains a battery, a heating element or atomizer, a liquid nicotine reservoir, and a mouthpiece. See 2016 Sur- geon General's Report 11. When an e-cigarette user inhales through the device's m…

  • #14

    620,000 middle-school students reported using an e-cigarette at least once in the last 30 days. 2016 Surgeon General's Report 5, 10. And a more recent estimate suggests that approximately 3.6 million American middle- and high-school students used an e-cigarette within a 30-day period. See Page Proof Pending Publi…

  • #15

    556 FD A v. WAGES AND WHITE LION INVESTMENTS, LLC Opinion of the Court Court ultimately imposed a deadline of September 9, 2020, adding to the time crunch for compliance. See American Academy of Pediatrics v. FDA, 399 F. Supp. 3d 479, 487 (Md. 2019) (imposing a May 12, 2020, deadline); Order in Ameri- can Academ…

  • #16

    tent Overview 18, 26 (Oct. 23, 2018), https://www.fda.gov/ media/117507/download (2018 Presentation). The FDA said much the same thing in a lengthy 2019 guidance document, noting that the “relatively new entrance” of e-cigarette prod- ucts meant that “limited data may exist from scientifc stud- ies and analyses.”…

  • #17

    sents less risk than other tobacco products.” 21 U. S. C. § 387j(b)(1)(A). Elaborating on that standard at a presenta- tion on October 23, 2018, an FDA offcial encouraged appli- cants to provide comparisons between their products and a “representative sample of tobacco products on the market.” 2018 Presentation 1…

  • #18

    against “[a]ll other [e-cigarette] products for which the manu- facturer has failed to take (or is failing to take) adequate measures to prevent minors' access,” as well as “[a]ny [e- cigarette] product that is targeted to minors or whose mar- keting is likely to promote use of [e-cigarettes] by minors.” Id., at …

  • #19

    that applications “would be required to contain.” Id., at 50603; see, e. g., ibid. (listing “[c]ross sectional and longitudi- nal surveys,” “epidemiologic studies,” and “analytic studies” like “randomized controlled clinical trials, cohort studies, and case control studies”); id., at 50599 (proposing “health risk …

  • #20

    ment of certain, required non-product specifc data,” includ- ing what they characterized as a “comprehensive review of the scientifc literature.” Id., at 311. One of the respond- ents, Vapetasia, also submitted the results of a cross- sectional survey of current and former adult e-cigarette smokers. See App. to P…

  • #21

    ect Lead (TPL) Review.” See id., at 177a, 285a. These Page Proof Pending Publication Cite as: 604 U. S. 542 (2025) 563 Opinion of the Court lengthy documents have several noteworthy features. To start, they offer a window into the FDA's evolving under- standing of how favor, regardless of e-cigarette device type…

  • #22

    ments. 90 F. 4th 357, 362 (2024). The court pointed to sev- eral main examples of this phenomenon, including the FDA's positions on scientifc evidence, cross-favor comparisons, and device type. See, e. g., id., at 376, 377, 384. The court ex- pressed particular concern that the FDA pulled the rug out from under m…

  • #23

    Unless Congress has specifed otherwise, agencies are gen- erally free to develop regulatory standards “either by gen- eral [legislative] rule or by individual order” in an adjudica- tion. SEC v. Chenery Corp., 332 U. S. 194, 202–203 (1947) (Chenery II). Of course, if a statute requires rulemaking, the affected ag…

  • #24

    standard of proof than is evident in the denial orders the FDA ultimately issued, but in the end, we cannot say that to, among other things, the necessary contents of a premarket tobacco product application, see Brief for Taxpayers Protection Alliance as Ami- cus Curiae 7–8; (2) that the relevant provisions of the…

  • #25

    Ins. Co., 463 U. S. 29, 43 (1983) (internal quotation marks omitted). The scope of this review “is narrow,” and review- ing courts must exercise appropriate deference to agency de- cisionmaking and not substitute their own judgment for that of the agency. Ibid. Our case law identifes numerous ways in which an age…

  • #26

    Arg. 88. To the extent respondents raise a freestanding “fair notice” argument, see id., at 90, the exact contours of that contention are somewhat unclear. By asking us to af- frm the decision below, respondents do not now suggest that 4 At one point, however, respondents seem to suggest that the FDA violated the…

  • #27

    See, e. g., FCC v. Fox Television Stations, Inc., 556 U. S. 502, 517 (2009). True, we have on at least one occasion applied the doctrine when an agency altered a position frst stated in a policy statement. See Depart- ment of Homeland Security v. Regents of Univ. of Cal., 591 U. S. 1, 30 (2020). But as we explaine…

  • #28

    telling applicants that no specifc kinds of scientifc evidence were required, turned around and rejected all applications lacking evidence from a randomized controlled trial or longi- tudinal cohort study. See Brief for Respondents 37, 40–42. Second, respondents claim, the FDA told applicants they had discretion …

  • #29

    imposes only basic requirements on this matter. It says that the agency's determination of what “would be appro- priate for the protection of the public health” must be made based on either “well-controlled investigations, which may include 1 or more clinical investigations by experts qualifed by training and exp…

  • #30

    Id., at 18, 27. None of this amounted to anything like a hard-and-fast commitment as to the minimum evidence the agency would require for marketing authorization. 6 A June 2019 guidance document was similarly noncommit- tal. After reiterating the statutory requirement of “well- controlled investigations,” the do…

  • #31

    rigorous scientifc evidence that the sale of their particular products would be appropriate for the protection of the pub- lic health. In this case, the applicants did not submit ran- domized controlled trials or longitudinal cohort studies, so the fate of their applications turned on whether they submit- ted “ot…

  • #32

    515. In line with the agency's prior guidance, each denial order was based on the applicant's failure to provide either evidence from well-controlled investigations, such as “a ran- domized controlled trial and/or longitudinal cohort study,” see App. to Pet. for Cert. 167a, or other evidence that was found to be …

  • #33

    much harder stance than was implied by the FDA's public statements, which told applicants that “other evidence” might be capable of proving a new tobacco product's appro- priateness for the protection of public health. Respondents suggest that the FDA surreptitiously applied the “fatal faw” memorandum, and as evi…

  • #34

    gust 25, 2021, the FDA rescinded the August 17, 2021, memo- randum and represented that it would “not consider or rely on [it] as a supporting document.” Id., at 282. Rescission of the August 17 memorandum raises the ques- tion whether that action effectively reinstated the July 9, 2021, “fatal faw” memorandum or…

  • #35

    cerning investigations which have been made to show . . . whether [its] tobacco product presents less risk than other tobacco products .” 21 U. S. C. § 387j(b)(1)(A) (emphasis added). Moreover, the FDA's determination that a new to- bacco product is “appropriate for the protection of the public health” is an inhe…

  • #36

    tiveness of favors to youth and young adults.” Id., at 88. Page Proof Pending Publication 580 FD A v. WAGES AND WHITE LION INVESTMENTS, LLC Opinion of the Court Further, in its 2020 enforcement guidance, the FDA tele- graphed its view that dessert-, candy-, and fruit-favored e-cigarette products are more likely …

  • #37

    fruit-favored products compared to tobacco- and menthol- favored products. Such a predictable outgrowth from pre- vious guidance is not an “[u]nexplained inconsistency” amounting to a “change” under the change-in-position doc- trine. National Cable & Telecommunications Assn. v. Brand X Internet Services, 545 U. S…

  • #38

    Only about 3% of all respondents stated that they preferred no favor”); id., at 321 (noting that a third of surveyed smok- ers “stated they started out using tobacco or menthol favors but now always or almost always use other favors”). All that is to say, respondents' applications are themselves strong evidence t…

  • #39

    guidance document, the FDA's central concern was the frst category because data suggested “youth are more likely to use certain favored, cartridge-based [e-cigarette] products.” Id., at 147. But nothing in the 2020 guidance suggested the FDA would decline to take enforcement action against other prod- ucts that …

  • #40

    at 518. True, the 2020 guidance unmistakably emphasized cartridge-based products, but it said nothing to suggest dessert-, candy-, and fruit-favored products for open-system e-cigarettes would escape regulatory scrutiny. And further distinguishing Fox Television, the FDA's actions here did not “br[eak] new ground…

  • #41

    very frst wave of marketing denials under the FDA's newly minted jurisdiction over tobacco products. We thus hold that the FDA's treatment of device type, even if it evolved over time, did not violate the change-in- position doctrine. b Respondents take issue with the FDA's explanation that it changed enforceme…

  • #42

    That brings us to the FDA's guidance concerning market- ing plans. Recall that the FDA does not contest the Fifth Circuit's fnding that it changed position regarding the sub- mission of marketing plans, but it argues that this error was harmless. This question presents a diffcult problem. It Cite as: 604 U. S. 54…

  • #43

    Opinion of the Court not to disturb a judgment or order unless refusal to do so would be “inconsistent with substantial justice.” Fed. Rule Civ. Proc. 61 (1939). The APA picked up on this principle and required courts reviewing agency action to take “due account . . . of the rule of prejudicial error.” § 706. Tak…

  • #44

    See 90 F. 4th, at 389–390. In Calcutt, after reciting the re- mand rule in strong terms, we acknowledged that a “remand may be unwarranted . . . [w]here the agency `was required' to take a particular action.” 598 U. S., at 630 (quoting Morgan Stanley Capital Group Inc. v. Public Util. Dist. No. 1 of Snohomish Cty…

  • #45

    For now, we agree with the FDA that the Fifth Circuit read Calcutt too broadly. It has long been accepted, for ex- ample, that a remand may not be necessary when an agency's decision is supported by a plethora of factual fndings, only one of which is unsound. When it is clear that the agency's error “had no beari…

  • #46

    the FDA has not identifed any prior case in which we have held that the application of an erroneous understanding of the governing law was harmless because a subsequent agency decision shows that the agency would have reached the same result if it had applied the correct understanding of the law. The FDA has not…

  • #47

    tory text and the well-documented and serious risks favored e-cigarette products pose to youth, it should have come as no surprise that applicants would need to submit rigorous scientifc evidence showing that the benefts of their products would outweigh those risks. See § 387j(c)(4). Page Proof Pending Publicatio…