“[T]he voluntary cessation of challenged conduct will only moot a claim when there is no ‘reasonable expectation’ that the accused litigant will resume the conduct after the lawsuit is dismissed.” (citation omitted)
How later courts described this case
- “[T]he voluntary cessation of challenged conduct will only moot a claim when there is no ‘reasonable expectation’ that the accused litigant will resume the conduct after the lawsuit is dismissed.” (citation omitted)
- reversing and remanding a court order granting a permanent injunction in part because “the injunction mandating [Defendant’s] future behavior and specifying the precise language the company must use with all future customers [was] overly broad”
- “[I]t is well settled that false commercial speech is not protected by the First Amendment and may be banned entirely.” (quoting Castrol Inc. v. Pennzoil Co., 987 F.2d 939, 949 (3d Cir. 1993))
- “Injunctive relief should be limited in scope to the extent necessary to protect the interests of the parties.”
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
MACUHEALTH, LP,
Plaintiff,
v. Case No. 8:22-cv-199-VMC-UAM
VISION ELEMENTS, INC.,
Defendant.
/
ORDER
This matter comes before the Court upon consideration of
Plaintiff MacuHealth LP’s request for permanent injunctive
relief (Doc. # 146), filed on November 29, 2023. Defendant
Vision Elements, Inc. responded on December 27, 2023. (Doc.
# 150). MacuHealth filed a reply on January 19, 2024. (Doc.
# 153). For the reasons that follow, the Motion is granted in
part and denied in part.
I. Background
A. Products and the False Advertisement
MacuHealth and Vision Elements sell competing
nutritional supplements intended to maintain or improve eye
health. (Doc. # 78-5 at 24:13-22, 43:13-44:5); (Doc. # 78-1
at 33:11-19). MacuHealth’s product is called “MacuHealth,”
while Vision Elements’ product is called “Early Defense.”
(Doc. # 78-5 at 24:13-22); (Doc. # 78-1 at 33:11-19).
Both companies’ nutritional supplements contain the same
amount of three active ingredients called LMZ carotenoids:
lutein, zeaxanthin, and mesozeaxanthin. (Doc. # 78-5 at
24:13-25); (Doc. # 78-1 at 33:22-34:9). The LMZ carotenoids
are extracted and derived from marigold flower petals using
solvents. (Doc. # 63-5 at 132:2-14). The industry uses hexane,
methanol, and acetone as solvents for this process. (Id. at
132:2-5); (Doc. # 78-5 at 18:22-19:3). While the solvents are
largely removed from the LMZ carotenoids during the
production process, residual amounts remain in the final
product. (Doc. # 63-4 at 43); (Doc. # 63-5 at 123:22-124:25).
Between January 2021 and November 2022, Vision Elements
promoted its supplement “using marketing materials that
stated it is free from, made without the use of, or does not
contain certain solvents including hexane, methanol and/or
acetone.” (Doc. # 150-1 at ¶ 7). The Early Defense bottle
also stated that the supplement did not contain hexane,
methanol, or acetone. (Doc. # 63-2 at 15). This claim was
repeated at trade shows, in personal product pitches, and in
emails to potential customers. (Doc. # 78-1 at 198:21-199:2);
(Doc. # 78-4 at 292-93, 297).
Vision Elements also created the following advertisement
comparing its product to “Competitor A”:
VISION ici
- CLEAN-LABEL vs KNOWN ISSUES Vision Elements, Inc.
ELEMENTS
zs Vision Elements Early Defense is FREE FROM:
Early Defense nor. Zinc, beta-carotene, class 2 solvents (hexane, methanol, and acetone), soy, synthetic
Comparison to = surfactants (polysorbate/tween, PEG), gelatin, plasticizers, gluten, wheat, egg, GMOs,
Competitor A = titanium dioxide, polyvinlypyrrolidone (PVP), artificial colors, flavors, and sweeteners.
frond Vion Esence ces Why clean-label is important:
Defence
Carotengid Formula: Int Arch Allergy Immunol 2001:126:218-225 eee □□□
tutes: tom v Vv Identification of |IgE-Binding Proteins in Soy Lecithin
ae Vv v Conclusions: Soy lecithin contains a number of lgE-binding proteins; thus, it might representa source of hidden allergens. These
Meso-zeaxanthin 10mg Vv Vv allergens are a more significant concern for soy-allergic individuals consuming lecithin products as a health supplement.
Carotenoid Source Non-GMo Marigold Marigold flower
(Origin) ese ee eae See Published in final edited form as:
Extraction Technique Supercritical CO, Solvent extraction: J Allergy Clin dmmuno! Pract. 2019; 7(5): 1533-1540.8. doi: 10.101 64 ,jaip.2018.12.003_
eco-friendly hexane, methonel, ocetonet
Pore eae SEE Sofigel (Revine gelatin) Immediate Hypersensitivity to Polyethylene Glycols and Polysorbates:
— a More Common Than We Have Recognized
pecans ones Suniower cl Results: Skin and provocation testing demonstrated symptomatic reactivity in both cases to PEG 3350 and polysorbate 80.
Surfactant Nor-GMO sunflower Tween 80° [polysorbate} Conclusions: Immediate hypersensitivity to PEG 3350 with cross-reactive polysorbate 80 hypersensitivity may be under recognized in
lecithin Soy lecithin (allergen)! clinical practice and can be detected with clinical skin testing. Our studies raise the possibility of an IgE mediated Type |
Soy Allergen None V hypersensitivity mechanism in some cases,
Gluten Free Vv Vv
ery V sen nl tata inept an ean Memento sik A nme Pe 8
aes Apsinesary Sate “_ sonoueaanit tishowienumunnit
eee
(Doc. # 78-4 at 299).
Matthew Brannen Hinton, owner and Chief Executive
Officer of Vision Elements, acknowledges that he created the
Competitor A bottle using a photo of the MacuHealth bottle.
(Doc. # 99 at 6); (Doc. # 150-1 at @ 2). Frederic Jouhet,
MacuHealth’s CEO, testified that consumers would recognize
the Competitor A bottle as that of MacuHealth. See (Doc. #
78-5 at 44:22-45:3) (“There is a marketing document that shows
a Vision Element or Vision Essence bottle side by side with
a MacuHealth bottle that has been blurred slightly, but not
enough to not convince the doctors what we’re discussing.”).
While Vision Elements was advertising using this claim,
the company sold its supplement to fourteen customers or eye
care professionals. (Doc. # 150-1 at ¶ 9). Nearly all sales
of Early Defense are to eyecare physicians, though 1% are
direct to consumers. (Id. at ¶ 6).
Vision Elements ceased publishing these claims in
November and December 2022 to avoid further litigation and
hired a consultant to change its marketing materials to omit
the claim. (Id. at ¶ 10-11); see (Doc. # 66-2 at ¶ 16) (“In
an effort to avoid further litigation regarding the
Advertisements, Vision Elements has stopped publishing the
Advertisements on its website or brochures. The
advertisements have been removed from [the] Vision Elements
website at https://www.visionelements.com. Bottles of Early
Defense for future production lots will have new labels that
do not include the Advertisements.”). “Since using the New
Label [without the claim], every one of the fourteen (14) eye
care professionals that previously purchased bottles with the
Old Label, [has] run out of Early Defense and repurchased
bottles with the New Label several times over, and any new
customers purchased bottles with the New Label.” (Doc. # 150-
1 at ¶ 12).
Mr. Hinton previously testified that his solvent claims
were “highly important” to customers choosing an ocular
supplement and that the claim that Early Defense uses a
“solvent free” extraction process was a way that Vision
Elements distinguished the product. (Doc. # 78-1 at 118:6-
20); (Id. at 196:23-197:2). Even so, the two doctors
MacuHealth identified as those from whom they had lost sales
based on the advertisements (Doc. # 150-2 at 14) testified at
trial that Vision Elements’ claims about using a solvent-free
process did not influence their decision to switch from
MacuHealth to Early Defense. (Doc. # 150-3 at 189:6-15,
206:19-21). Instead, the doctors switched products for other
reasons, including that the two supplements had the same
amounts of the LMZ carotenoids and Early Defense was sold at
a lower price. (Id. at 187:5-16, 205:14-206:18). Vision
Elements now states that it has no intention of republishing
the claim, and the company’s sales have improved since the
claim was removed from its advertising. (Id. at ¶¶ 13-14).
Though Vision Elements has stopped advertising the
claim, Mr. Jouhet still receives one to two questions about
this topic during trade shows. (Doc. # 146-2 at 189:9-12).
B. Procedural History
MacuHealth initiated this action on January 25, 2022.
(Doc. # 1). In its complaint, MacuHealth alleged unfair
competition under 15 U.S.C. § 1125(a)(1)(B) (Count I),
misleading advertising under Fla. Stat. § 817.41(1) (Count
II), unfair competition under Florida common law (Count III),
and deceptive and unfair trade practice under Fla. Stat. §
501.201 (Count IV). (Id. at ¶¶ 41-81). As part of its prayer
for relief, MacuHealth requested “an injunction ordering
Vision Elements to retract the False Advertisements, to
publish a corrective statement, and for Vision Elements and
all those who are in active concert with them to refrain from
publishing false advertisements in the future.” (Id. at 14).
MacuHealth did not explicitly plead the elements it is
required to prove to obtain injunctive relief in its
complaint.
In the order on MacuHealth’s motion for summary
judgment, the Court determined that the evidence demonstrated
that there was no dispute of material fact as to the elements
of MacuHealth’s claims, except as to whether MacuHealth
suffered any injury based on Vision Elements’ actions. (Doc.
# 99 at 24-35). The case proceeded to trial on each claim as
to this remaining issue.
At trial, the jury determined that MacuHealth has been,
or is likely to be, injured as a result of the false
advertising, but that MacuHealth had not suffered any actual
monetary damages. (Doc. # 141 at 1). The jury further
determined that Vision Elements’ conduct was not willful and
deliberate, Vision Elements was not unjustly enriched as a
result of the false or misleading advertising, and an award
of Vision Elements’ profits was not necessary to deter future
conduct. (Id. at 2). The jury found that Vision Elements did
not make a profit from sales made due to the false or
misleading advertising. (Id.). Even so, the jury awarded
MacuHealth nominal damages in the amount of $5,000.00. (Id.).
Now, MacuHealth moves for permanent injunctive relief.
(Doc. # 146). Specifically, MacuHealth seeks a permanent
injunction that orders that Vision Elements:
1) Refrain from making any claim that its product
does not use or does not contain class 2 solvents,
hexane, methanol, and/or acetone.
2) Within ten (10) days of the order, issue the
letter attached as Exhibit 1 [to the Motion], to
the eye care professionals to whom it has sold or
directly promoted its product.
3) Within ten (10) days of the order, issue a notice
of recall to all current and former customers of
Vision Elements demanding the return of any bottles
of Early Defense which state that the product does
not contain class 2 solvents – hexane, methanol,
acetone within ten (10) days. All returned bottles
are to be relabeled with a label without the
statement that the product does not contain class
2 solvents - hexane, methanol, acetone, before
being sold again.
4) Serve a declaration, signed by Mr. Hinton,
within thirty (30) days attesting to the
satisfaction of items (2) and (3) above, including
(i) identification of all eye care professionals to
whom Vision Elements sent the letter required by
item (2), and (ii) the number of bottles Vision
Elements received in response to its recall notice
and the names of the eye care professionals from
whom it received the bottles.
(Id. at 1-2). Vision Elements has responded to the Motion.
(Doc. # 150). MacuHealth has replied. (Doc. # 153). The Motion
is ripe for review.
II. Analysis
MacuHealth argues that it is entitled to permanent
injunctive relief based on its Lanham Act, Florida Deceptive
and Unfair Trade Practices Act (“FDUTPA”), and Florida common
law unfair competition claims. (Doc. # 146 at 3). The Court
determines that MacuHealth is entitled to a permanent
injunction under FDUTPA, the Lanham Act, and Florida common
law.
A. Florida Deceptive and Unfair Trade Practices Act
MacuHealth brought a claim under FDUTPA, asserting that
Vision Elements’ false advertisements constituted a deceptive
act and unfair practice under the statute. (Doc. # 1 at ¶¶
74-81). MacuHealth did not succeed on its claim for damages
under FDUTPA, pursuant to Florida Statute § 501.211(2). See
(Doc. # 141 at 1) (determining that MacuHealth had not
suffered actual monetary damages). However, MacuHealth
asserts that it is still entitled to injunctive relief under
FDUTPA based on the jury’s determination that MacuHealth has
been, or is likely to be, injured as a result of Vision
Elements’ false advertising. (Doc. # 146).
MacuHealth is entitled to injunctive relief under
FDUTPA. FDUTPA provides that, “[w]ithout regard to any other
remedy or relief to which a person is entitled, anyone
aggrieved by a violation of this part may bring an action .
. . to enjoin a person who has violated, is violating, or is
otherwise likely to violate this part.” Fla. Stat. §
501.211(1). “Accordingly, regardless of whether an aggrieved
party can recover ‘actual damages’ under section 501.211(2),
it may obtain injunctive relief under section 501.211(1).”
Wyndham Vacation Resorts, Inc. v. Timeshares Direct, Inc.,
123 So. 3d 1149, 1152 (Fla. 5th DCA 2012).
Courts have interpreted this provision as establishing
a lower threshold for injunctive relief than that under
federal law and other state statutes. In re Mednax Servs.,
Inc., Customer Data Sec. Breach Litig., No. 21-MD-02994-RAR,
2022 WL 3550045, at *2 (S.D. Fla. Aug. 18, 2022); Gastaldi v.
Sunvest Cmtys. USA, LLC, 637 F. Supp. 2d 1045, 1057 (S.D.
Fla. 2009). Under FDUTPA, “[t]here is no requirement that a
plaintiff show an ongoing practice or irreparable harm, and
. . . relief is available regardless of whether an adequate
remedy at law also exists.” Gastaldi, 637 F. Supp. 2d at 1057.
Further, the provision “is broadly worded to authorize
declaratory and injunctive relief even if those remedies
might not benefit the individual consumers who filed the
suit.” Davis v. Powertel, Inc., 776 So. 2d 971, 975 (Fla. 1st
DCA 2000). As such, “an aggrieved party may pursue a claim
for declaratory or injunctive relief under [FDUTPA], even if
the effect of those remedies would be limited to the
protection of consumers who have not yet been harmed by the
unlawful trade practice.” Id.
Vision Elements first argues that MacuHealth is not
entitled to injunctive relief under FDUTPA because MacuHealth
does not qualify as an “aggrieved” party. (Doc. # 150 at 11-
12). “The term ‘aggrieved’ is not defined in FDUTPA.” Ahearn
v. Mayo Clinic, 180 So. 3d 165, 171 (Fla. 1st DCA 2015).
Because of this, Florida circuit courts have adopted
different definitions of “aggrieved.” Importantly, several
courts have adopted or referenced the definitions of
“aggrieved” in Black’s Law Dictionary. The second definition
states that “aggrieved” means “([o]f a person) angry or sad
on grounds of perceived unfair treatment.” Id. at 172 (quoting
Aggrieved, Black’s Law Dictionary (10th ed. 2014)); see also
O’Keefe v. Pick Five Imports, Inc., No. 8:18-cv-1496-MSS-AEP,
2019 WL 13083614, at *10 (M.D. Fla. June 14, 2019). “This
definition of ‘aggrieved’ [is] more expansive than ‘damaged’
or ‘suffered a loss.’” Ahearn, 180 So. 3d at 172. Interpreting
this caselaw, the Middle District of Florida has stated that
“a plaintiff is ‘aggrieved’ under FDUTPA when the deceptive
conduct alleged has caused a non-speculative injury that has
affected the plaintiff beyond a general interest in curbing
deceptive or unfair conduct.” Superior Consulting Servs.,
Inc. v. Shaklee Corp., No. 6:16-cv-2001-GAP-GJK, 2017 WL
2834783, at *7 (M.D. Fla. June 30, 2017) (citing Ahearn, 180
So. 3d at 173).
Where a plaintiff is a business entity, and not a person,
some courts have instead referred to the first definition of
aggrieved in Black’s Law Dictionary: “([o]f a person or
entity) having legal rights that are adversely affected;
having been harmed by an infringement of legal rights.”
Stewart Agency, Inc. v. Arrigo Enters., Inc., 266 So. 3d 207,
213-14 (Fla. 4th DCA 2019); e.g., Westgate Resorts, Ltd. v.
Reed Hein & Assocs., LLC, No. 6:18-cv-1088-GAP-DCI, 2020 WL
3265972, at *3 (M.D. Fla. Apr. 27, 2020) (noting that “the
plaintiff is ‘aggrieved[’ when] ‘its rights have been, are
being, or will be adversely affected’” (quoting Stewart
Agency, Inc., 266 So. 3d at 214)). This definition “is not
synonymous with the requirement to show entitlement to actual
damages under section 501.211(2), because entities frequently
do not suffer actual damages from unfair and deceptive
practices of competitors.” Stewart Agency, Inc., 266 So. 3d
at 214. “Instead, their damages are frequently special or
consequential damages, and thus, not compensable under
section 501.211(2).” Id.
MacuHealth qualifies as an aggrieved party under FDUTPA.
FDUTPA recognizes non-monetary harm, the type of harm that
the jury determined MacuHealth had experienced or was likely
to experience as a result of Vision Element’s claims. See Id.
(recognizing that the damages suffered by business entities
are frequently special or consequential, and not actual);
Global Tech Led, LLC v. Hilumz Int’l Corp., No. 2:15-cv-553-
JES-CM, 2017 WL 588669, at *8 n.13 (M.D. Fla. Feb. 14, 2017)
(“The FDUTPA allows ‘anyone aggrieved by a violation of [the
Act to] bring an action to obtain a declaratory judgment . .
. and to enjoin [the accused],’ . . . and Defendants’
allegations of commercial and reputational harm show that
Defendants may be ‘aggrieved.’” (citations omitted)).
Additionally, in contrast to Vision Elements’ assertions
(Doc. # 150 at 11-12), the harm to MacuHealth caused by the
false statements is not speculative. The jury determined
that, while MacuHealth had not suffered any actual monetary
damages, the company has been, or is likely to be, injured as
a result of the false advertising. (Doc. # 141 at 1). This
determination establishes that MacuHealth did suffer harm or
is sufficiently likely to suffer harm that entitles it to a
permanent injunction under FDUTPA. See Fla. Stat. §
501.211(1) (providing that a plaintiff can seek “to enjoin a
person who has violated, is violating, or is otherwise likely
to violate this part”). Further, the jury’s determination was
supported by sufficient evidence, such as Mr. Jouhet’s
testimony that he must field questions about solvent-free
production at trade shows. (Doc. # 146-2 at 189:9-12).
Vision Elements further asserts that MacuHealth is not
entitled to injunctive relief under FDUTPA because there is
no likelihood that the advertisements with the comparisons to
MacuHealth based on false information will be republished.
(Doc. # 150 at 12-13). “Under Florida law ‘an injunction will
not be granted where it appears that the acts complained of
have already been committed and there is no showing by the
pleadings and proof that there is a reasonably well grounded
probability that such course of conduct will continue in the
future.’” Off Lease Only, Inc. v. LeJeune Auto Wholesale,
Inc., 187 So. 3d 868, 870 (Fla. 3d DCA 2016) (quoting City of
Jacksonville v. Wilson, 27 So. 2d 108, 111 (1946)).
Vision Elements has taken several steps to remove the
false advertisements, including no longer publishing the
advertisements, replacing the supplement’s label with one
that omitted that false statement, and hiring a consultant to
assist with changes to marketing materials about the
supplement, “to avoid further advertising disputes.” (Doc. #
150 at 3-4); (Doc. # 150-1 at ¶¶ 10-11). However, as
MacuHealth highlights, Vision Elements has not issued any
corrective advertising. And “[t]he mere voluntary cessation
of conduct alleged to be in violation of FDUTPA does not
necessarily foreclose [a plaintiff] from pursuing an action
for injunctive relief.” Off Lease Only, Inc., 187 So. 3d at
870. Importantly, Vision Elements stopped publishing the
advertisements in an effort to avoid further litigation.
(Doc. # 66-2 at ¶ 16). The Court concludes that there is a
reasonable probability that Vision Elements may continue its
false advertisements in the future, especially when Mr.
Hinton has refused to concede that Vision Elements’ product
contains the solvents at issue. (Doc. #146-4 at 34:21-25).
This demonstrates that Mr. Hinton still believes that the
product is solvent-free, as previously advertised and proved
false.
In sum, the Court believes that injunctive relief is
still warranted despite Vision Elements’ efforts to remove
the false statements. MacuHealth may continue to suffer harm
without corrective advertising and any harm could be
increased if Vision Elements decides to republish the
statements. Accordingly, MacuHealth is entitled to injunctive
relief under FDUTPA.
B. Lanham Act
MacuHealth asserts that it is also entitled to a
permanent injunction based on its claim under the Lanham Act
for unfair competition, misrepresentation, and false
advertising, pursuant to 15 U.S.C. § 1125(a)(1)(B). (Doc. #
1 at 8); (Doc. # 146 at 7). The Court agrees.
The Lanham Act allows courts “to grant injunctions,
according to the principles of equity and upon such terms and
the court may deem reasonable, . . . to prevent a violation
under subsection (a), (c), or (d) of section 1125 of [the]
title.” 15 U.S.C. § 1116(a). “[A] plaintiff who brings an
action pursuant to section 1125(a) is entitled to permanent
injunctive relief if the plaintiff succeeds on the merits of
his or her claim and if the equities involved favor injunctive
relief.” Neva, Inc. v. Christian Duplications Int’l, Inc.,
743 F. Supp. 1533, 1548 (M.D. Fla. 1990) (citation omitted).
Before a court may grant a permanent injunction under
the Lanham Act, a plaintiff seeking a permanent injunction
must satisfy the following four-factor test: “(1) that it has
suffered an irreparable injury; (2) that remedies available
at law, such as monetary damages, are inadequate to compensate
for that injury; (3) that, considering the balance of
hardships between the plaintiff and defendant, a remedy in
equity is warranted; and (4) that the public interest would
not be disserved by a permanent injunction.” eBay Inc. v.
MercExchange, L.L.C., 547 U.S. 388, 391 (2006). “The decision
to grant or deny permanent injunctive relief is an act of
equitable discretion by the district court . . . .” Id. The
Court will address each factor in turn.
1. Irreparable Injury
As to the first factor, “[a]n injury is ‘irreparable’
only if it cannot be undone through monetary remedies.” Ne.
Fla. Chapter of Ass’n of Gen. Contractors v. Jacksonville,
896 F.2d 1283, 1285 (11th Cir. 1990). “[G]rounds for
irreparable injury include loss of control of reputation,
loss of trade, and loss of goodwill.” Ferrellgas Partners,
L.P. v. Barrow, 143 F. App’x 180, 190 (11th Cir. 2005)
(quoting Pappan Enters., Inc. v. Hardee’s Food Sys., Inc.,
143 F.3d 800, 805 (3d Cir. 1998)). Further, the statute
provides that “[a] plaintiff seeking any such injunction
shall be entitled to a rebuttable presumption of irreparable
harm upon a finding of a violation identified in this
subsection in the case of a motion for a permanent
injunction.” 15 U.S.C. § 1116(a). “This presumption, it
appears, is based upon the judgment that it is virtually
impossible to ascertain the precise economic consequences of
intangible harms, such as damage to reputation and loss of
goodwill, caused by such violations.” Abbott Lab’ys v. Mead
Johnson & Co., 971 F.2d 6, 16 (7th Cir. 1992). Importantly,
“[p]roof of falsity [in false advertising cases] is generally
. . . sufficient to sustain a finding of irreparable injury
when the false statement is made in the context of comparative
advertising between the plaintiffs’ and defendant’s
products.” N. Am. Med. Corp. v. Axiom Worldwide, Inc., 522
F.3d 1211, 1227 (11th Cir. 2008).
Here, Vision Elements specifically made its false
statement in the context of comparative advertising. (Doc. #
78-4 at 299). Additionally, while Vision Elements asserts
that MacuHealth’s harm is monetary in nature based on Mr.
Jouhet’s testimony about the decrease in the closing rates,
the jury specifically found that MacuHealth had suffered
harm, but no monetary damages. See (Doc. # 141 at 1) (finding
that “MacuHealth [has] been, or is likely to be, injured as
a result of the false advertising,” but that MacuHealth did
not suffer actual monetary damages). Vision Elements’
arguments to the contrary do not sufficiently rebut the
presumption of irreparable injury. Accordingly, MacuHealth
has established an irreparable injury.
2. Inadequate Remedies at Law
MacuHealth also does not have adequate remedies at law
for the harms. “[A] remedy at law for . . . reputational
damage is ordinarily inadequate, given ‘the potential
difficulty of proof of plaintiff’s damages’ and ‘the
impairment of intangible values.’” Boulan S. Beach Master
Ass’n, Inc. v. Think Props., LLC, 617 F. App’x 931, 934 (11th
Cir. 2015) (citation omitted).
“The terms ‘inadequate remedy at law’ and ‘irreparable
harm’ describe two sides of the same coin. If the harm being
suffered by plaintiff . . . is ‘irreparable’ then the remedy
at law (monetary damages) is ‘inadequate’.” Anhing Corp. v.
Thuan Phong Co., CV 13-05167 BRO (MANx), 2015 WL 4517846, at
*23 (C.D. Cal. July 24, 2015) (quoting 4 McCarthy on
Trademarks and Unfair Competition § 30:2 (5th ed.)).
As noted above, MacuHealth’s harm cannot be compensated
for through monetary remedies. Therefore, MacuHealth has
established that it has inadequate remedies at law.
3. Balance of Hardships
Further, the balance of hardships weighs in favor of
granting an injunction. Vision Elements does not have a
legitimate interest in the false statements. See PBM Prods.,
LLC v. Mead Johnson & Co., 639 F.3d 111, 127 (4th Cir. 2011)
(“Mead Johnson ‘simply has no equitable interest in
perpetuating the false and misleading claims in the Mailer.’”
(citation omitted)); Homeland Housewares, LLC v. Euro-Pro
Operating LLC, No. CV 14-03954 DDP (MANx), 2014 WL 4187982,
at *5 (“As a general matter, ‘there is no harm to a defendant
from an injunction which prevents continuing dissemination of
false statements.’” (citation omitted)); Osmose, Inc. v.
Viance, LLC, 612 F.3d 1298, 1323 (11th Cir. 2010) (“[I]t is
well settled that false commercial speech is not protected by
the First Amendment and may be banned entirely.” (quoting
Castrol Inc. v. Pennzoil Co., 987 F.2d 939, 949 (3d Cir.
1993))). Accordingly, Vision Elements will suffer little
hardship in being prohibited from making the false claims
again. Additionally, “[a] district court has broad powers in
equity to direct parties who have engaged in unfair
competition to take affirmative steps to eliminate possible
consumer confusion,” including by issuing corrective
statements. Energy Four, Inc. v. Dornier Med. Sys., Inc., 765
F. Supp. 724, 735 (N.D. Ga. 1991).
Further, Vision Elements is unlikely to suffer any
hardship from being enjoined from publishing false statements
that it has already ceased to publish and allegedly has no
intention of publishing again. See (Doc. # 150-1 at ¶¶ 10,
14). Affirmative steps to correct the false advertising are
also appropriate to address any consumers who have already
been exposed to the false statements. See Handsome Brook Farm,
LLC v. Humane Farm Animal Care, Inc., 700 F. App’x 251, 264
(4th Cir. 2017) (“Requiring HFAC to issue a retraction email,
sent to its initial list of recipients, is a reasonably
related requirement to ensure that those who received the
first email will also receive the retraction email that
mitigates the harm the first email caused.”). In contrast,
MacuHealth has a great interest in not having to counter false
statements, particularly those made in comparative
advertisements with the company’s product. While the Court
will further discuss the appropriate scope of the permanent
injunction below, the balance of harms weighs in favor of
injunctive relief.
4. Public Interest
Finally, injunctive relief is in the public interest.
“The Eleventh Circuit has explained that []the public
interest relevant to the issuance of [an]... injunction is
the public’s interest in avoiding unnecessary confusion.’”
It’s a 10, Inc. v. Beauty Elite Grp., Inc., 932 F. Supp. 2d
1325, 1333 (S.D. Fla. 2013) (internal quotation marks
omitted) (quoting Angel Flight of Ga. v. Angel Flight Am.,
Inc., 522 F.3d 1200, 1209 (11th Cir. 2008)). Further, “it is
self evident that preventing false or misleading advertising
is in the public interest in general.” PBM Prods., LLC, 639
F.3d at 127 (citation omitted). As modified, the relief would
not interfere with the public’s enjoyment of Early Defense
nor Vision Elements’ ability to compete fairly with
MacuHealth.
In sum, injunctive relief is warranted under the Lanham
Act.
C. Florida Common Law for Unfair Competition
Because injunctive relief is warranted under the Lanham
Act as explained above, it is also warranted under Florida
common law. The legal analysis is the same for violations of
the Lanham Act, FDUPTA, and Florida common law for unfair
competition. See Suntree Techs., Inc. v. Ecosense Int’l,
Inc., 693 F.3d 1338, 1345 (11th Cir. 2012) (“Courts may use
an analysis of federal infringement claims as a ‘measuring
stick’ in evaluating the merits of state law claims of unfair
competition.”). The Lanham Act and the Florida common law for
unfair competition are coextensive, and injunctive relief is
therefore appropriate under both. See Am. United Life Ins.
Co. v. Am. United Ins. Co., 731 F. Supp. 480, 486 (S.D. Fla.
1990) (holding that the Lanham Act analysis also proved a
common law unfair competition claim, entitling plaintiff to
injunctive relief under both); see also Nat. Answers, Inc. v.
SmithKline Beecham Corp., 529 F.3d 1325, 1332–33 (11th Cir.
2008) (“Since Natural Answers is unable to bring an unfair
competition claim under the Lanham Act under the theory of
either false advertising or trademark infringement, it
follows that the common law claims based on unfair competition
and trademark infringement must fail as well.”).
D. Scope of Permanent Injunction
As noted above, MacuHealth requests injunctive relief
composed of four elements. (Doc. # 146 at 1-2).
1. Refrain from Making False Statements
The Court determines that the first element, requiring
that Vision Elements “[re]frain from making any claim that
its product does not use or does not contain class 2 solvents,
hexane, methanol, and/or acetone,” is warranted. (Id. at 1).
The Court acknowledges that Vision Elements has stopped
advertising using the false statement and states that it has
no intention to republish this statement. (Doc. # 150-1 at ¶¶
10-11, 14). But Vision Elements only stopped making this claim
to avoid further litigation on this issue (Doc. # 66-2 at ¶
16), a fact that leaves this Court with a reasonable
expectation that the false advertising may be resumed in the
future. Accordingly, the Court believes that injunctive
relief is still appropriate. See Nat’l Ass’n of Bds. of Pharm.
V. Bd. of Regents of the Univ. Sys. of Ga., 633 F.3d 1297,
1309 (11th Cir. 2011) (“[T]he voluntary cessation of
challenged conduct will only moot a claim when there is no
‘reasonable expectation’ that the accused litigant will
resume the conduct after the lawsuit is dismissed.” (citation
omitted)).
2. Issue Corrective Statement
MacuHealth also requests that the Court require that
Vision Elements issue the below letter to the eye care
professionals to whom it has sold or directly promoted its
product within ten days of this order. (Doc. # 146 at 1). The
letter reads:
Dear Eye-Care-Professional.
My name is Brannen Hinton. I am the Founder and CEO
of Vision Elements, a dietary supplement company
that sells the carotenoids-based ocular supplement
called Early Defense.
For several years, we published advertisements
stating that Early Defense was manufactured without
the use of any class 2 solvents in the process, and
that, consequently, the final product was free from
any residual amounts of such class 2 solvents. We
published this claim to elevate Early Defense and
denigrate our closest competitor, MacuHealth, by
suggesting that the MacuHealth product has purity
or safety issues.
THESE STATEMENTS WERE LITERALLY FALSE, WE SHOULD
HAVE KNOWN THEY WERE FALSE, AND WE HEREBY RETRACT
THEM. I APOLOGIZE TO YOU EYE CARE PROFESSIONALS AND
TO MACUHEALTH FOR THESE FALSE ADVERTISEMENTS.
Again, we humbly present you with this apology to
rectify the wrong done. We will now focus on
providing you with accurate information and
representations and cease to use deceptive methods
of advertising.
My humble apologies,
Brannen Hinton
Founder and CEO
Vision Element[s]
(Doc. # 146-1).
“A district court has broad powers in equity to direct
parties who have engaged in unfair competition to take
affirmative steps to eliminate possible consumer confusion.”
Energy Four, Inc., 765 F. Supp. at 735 (citation omitted).
Using these powers, courts have sometimes ordered corrective
statements or corrective advertising to offset the effects of
the false statements in addition to measures prohibiting
further false statements. See, e.g., Handsome Brook Farm,
LLC, 700 F. App’x at 264 (“[C]ompelling HFAC to issue a
retraction email is reasonably related to the State’s
interest in preventing deception of consumers. . . . Merely
refusing to further disseminate the email reduces the speed
by which the false information spreads, but provides no remedy
for those who have already read the email and those who share
the email with others.”). While Vision Elements has taken
steps to eliminate the further publication of materials with
the false statement, it has not taken any steps to correct
the advertising that has already reached consumers. Compare
Eastman Chem. Co. v. PlastiPure, Inc., 969 F. Supp. 2d 756,
771 (W.D. Tex. Aug. 30, 2013) (determining that corrective
advertising was not warranted where Defendant “ha[d] already
engaged in significant amounts of corrective advertising, and
it is unclear what additional effect a digital billboard
written by [Plaintiff] and posted on Defendants’ website
[would] have”). Accordingly, a corrective statement is
“appropriate to ‘remedy lingering confusion caused by’
Defendants’ past and ongoing deception.” Monster Energy Co.
v. Vital Pharms., Inc., EDCV 18-1882 JGB (SHKx), 2023 WL
2918724 (C.D. Cal. April 12, 2023) (quoting
TrafficSchool.com, Inc. v. Edriver Inc., 653 F.3d 820, 830
(9th Cir. 2011)).
Further, other courts have ordered more burdensome
corrective statements. See, e.g., Merck Eprova AG v. Gnosis
S.p.A, 760 F.3d 247, 264-65 (2nd Cir. 2014) (affirming an
injunction requiring that Defendants publish corrective
advertising on their homepage, the product’s sale page, and
third-party industry websites and trade magazines where they
advertised their product).
Vision Elements raises concerns about the sufficiency
with which the request for injunctive relief was pled in the
complaint, including that “the Complaint did not propose
sending [MacuHealth’s] crafted statement to all customers and
non-customers who may have been sent marketing materials but
never became customers.” (Doc. # 150 at 14). However,
MacuHealth did include a request for injunctive relief in its
prayer for relief and indicated that it would seek to have
Vision Elements retract the false statements and issue a
corrective statement. (Doc. # 1 at 14). Vision Elements has
provided no caselaw indicating that the language of the
corrective statement itself must be included in the
complaint. Additionally, other courts have found it
appropriate to send corrective statements to the audience
that previously received the false statements or advertising.
E.g., Handsome Brook Farm, LLC, 700 F. App’x at 264
(“Requiring HFAC to issue a retraction email, sent to its
initial list of recipients, is a reasonably related
requirement to ensure that those who received the first email
will also receive the retraction email that mitigates the
harm the first email caused.”).
Finally, Vision Elements asserts that the injunctive
relief sought by MacuHealth violates Vision Elements’ First
Amendment rights because the corrective statement is overly
broad. (Doc. # 150 at 14). Vision Elements does not specify
which aspects of the requested injunction are overly broad.
However, it does note that any “such relief must be narrowly
tailored to restrain no more than what is reasonably required
to protect the interest of the parties.” (Id. at 14-15); see
Keener v. Convergys Corp., 342 F.3d 1264, 1269 (11th Cir.
2003) (“Injunctive relief should be limited in scope to the
extent necessary to protect the interests of the parties.”);
Bull Motors, L.L.C. v. Brown, 152 So. 3d 32, 36 (Fla. 3d DCA
2014) (reversing and remanding a court order granting a
permanent injunction in part because “the injunction
mandating [Defendant’s] future behavior and specifying the
precise language the company must use with all future
customers [was] overly broad”). The Court does not believe
that mandating a specific corrective statement would violate
Vision Elements’ First Amendment rights. Indeed, several
courts have mandated that defendants issue corrective
statements with specified text as part of preliminary or
permanent injunctions. E.g., Energy Four, Inc., 765 F. Supp.
at 765, app. A; Monster Energy Co., 2023 WL 2918724, at *15,
Ex. A.
However, the Court acknowledges that the proposed
language includes several statements expressing an opinion on
behalf of Mr. Brannen, such as those statements apologizing
for the false statements. Therefore, while the Court will
direct Vision Elements to issue a corrective statement as
part of the permanent injunction, the Court has modified the
language to convey only the facts. This approach makes the
statement more similar to those issued in other cases. E.g.,
Energy Four, Inc., 765 F. Supp. at 765, app. A (directing
issuance of a corrective statement at the preliminary
injunction stage that provides a factual summary of the case
and the reasons for issuing the notice); Monster Energy Co.,
2023 WL 2918724, at *15, Ex. A (directing that Defendant issue
a corrective statement summarizing the case, the jury
verdict, and the permanent injunction).
The Court mandates that Vision Elements issue the
following corrective statement to the eye care professionals
to whom it has sold or directly promoted its product within
ten days of the order:
Subject: Corrective Statement Relating to Vision
Elements’ Advertising
Dear Eye Care Professional,
Vision Elements is a dietary supplement company
that sells the carotenoids-based ocular supplement
called Early Defense. In January 2022, MacuHealth,
LP filed a civil suit against Vision Elements, Inc.
alleging false and misleading advertising.
In August 2024, the United States District Court
for the Middle District of Florida issued a
permanent injunction enjoining Vision Elements,
Inc. from making any claim that Early Defense does
not use or does not contain class 2 solvents,
hexane, methanol, and/or acetone on the basis that
this claim is false.
Our records indicate that, between January 2021 and
November 2022, you received advertisements that
contained this claim.
Vision Elements retracts this claim. The company’s
packaging and advertisements have been modified to
reflect this ruling.
3. Product Recall
Next, the Court does not believe that a recall of “any
bottles of Early Defense which state that the product does
not contain class 2 solvents – hexane, methanol, acetone
within ten (10) days” is warranted. See (doc. # 146 at 2)
(requesting this relief). Importantly, Vision Elements has
provided an affidavit from Mr. Hinton stating that “[s]ince
using the New Label [without the false statements], every one
of the fourteen (14) eye care professionals that previously
purchased bottles with the Old Label, [has] run out of Early
Defense and repurchased bottles with the New Label several
times over, and any new customers purchased bottles with the
New Label.” (Doc. # 150-1 at ¶ 12). Therefore, a recall would
not result in the collection of any bottles of Early Defense
that contain the false statement and no recall is warranted.
Because the Court determines that a recall is not warranted,
the Court will not address Vision Elements’ concerns
regarding whether MacuHealth’s request for a recall was
sufficiently pled. (Doc. # 150 at 14).
4. Declaration of Compliance
Based on the prior requests, the Court determines that
it is appropriate to direct Vision Elements to serve a sworn
declaration, signed by Mr. Hinton, upon MacuHealth and the
Court within thirty (30) days of this order attesting that it
has issued the corrective statement and identifying the eye
care professionals to whom Vision Elements sent the
statement. The Lanham Act provides that “[a]ny [] injunction
[issued pursuant to the Act] may include a provision directing
the defendant to file with the court and serve on the
plaintiff within thirty days after the service on the
defendant of such injunction, or such extended period as the
court may direct, a report in writing under oath setting forth
in detail the manner and form in which the defendant has
complied with the injunction.” 15 U.S.C. § 1116(a). The Court
determines that a declaration is appropriate to verify Vision
Elements’ compliance with the terms of the permanent
injunction.
Accordingly, it is now
ORDERED, ADJUDGED, and DECREED:
(1) Plaintiff MacuHealth, LP’s Request for Permanent
Injunctive Relief (Doc. # 146) is GRANTED in part and
DENIED in part.
(2) Vision Elements is directed to:
a. Refrain from making any claim that its product does
not use or does not contain class 2 solvents,
hexane, methanol, and/or acetone.
b. Within ten (10) days of the Order, issue the above
letter to the eye care professionals to whom it has
sold or directly promoted its product.
Cc. Serve a sworn declaration, signed by Mr. Hinton,
within thirty (30) days of the Order attesting to
the satisfaction of item (b) above, including
identification of all eye care professionals to
whom Vision Elements sent the letter required by
item (b).
(3) The Clerk is directed to terminate any pending deadlines
and close this case.
DONE and ORDERED in Chambers in Tampa, Florida, this 9th
day of August, 2024.
Eigen Maca ee
VIRGINIA M. HERNANDEZ*COVINGTON
UNITED STATES DISTRICT JUDGE
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