NUTRITIONAL HEALTH ALLIANCE, Plaintiff-Appellant, v. FOOD AND DRUG
ADMINISTRATION and DONNA SHALALA, in her official capacity as Secretary, U.S.
DEPARTMENT OF HEALTH and HUMAN SERVICES, Defendants-Appellees.
Docket No. 01-6011
UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT
318 F.3d 92; 2003 U.S. App. LEXIS
921
November 6, 2001, Argued
January 21, 2003, DecidedPRIOR HISTORY:
[**1] Plaintiff-appellant, Nutritional Health Alliance ("NHA"),
appeals from a judgment entered on November 15, 2000 by the United States
District Court for the Eastern District of New York (Sterling Johnson, Jr.,
Judge) which dismissed plaintiff's complaint which challenged whether the Food
and Drug Administration ("FDA") had been delegated authority to regulate the
packaging of solid dosage dietary supplements and drugs. The district court
denied NHA's motion for summary judgment and granted the cross-motion of
defendants-appellees, the FDA and Secretary of Health and Human Services, for
summary judgment dismissing NHA's complaint.
DISPOSITION: REVERSED and REMANDED.
COUNSEL: John M. Desiderio, Esq., Desiderio, PC &
Associates, New York, NY, (Robert Ullman and H. Elliot Wales on the brief) for
Appellant.
Charles S. Kleinberg, Esq., Assistant
U.S. Attorney, U.S. Attorney's Office, Brooklyn, NY, (Alan Vinegrad, U.S.
Attorney and Deborah B. Zwany, Assistant U.S. Attorney on the brief) for
Appellees.
JUDGES: BEFORE: KEARSE, MINER, F.I.
PARKER, Circuit Judges.
OPINION BY: F.I.
PARKER
OPINION: [*94] F.I. PARKER, Circuit Judge:
Plaintiff-appellant, Nutritional Health Alliance ("NHA"), appeals from
a judgment entered [**2] on November 15, 2000 by the United States
District Court for the Eastern District of New York (Sterling Johnson, Jr.,
Judge) denying NHA's motion for summary judgment and granting the cross-motion
of defendants-appellees, the Food and Drug Administration ("FDA") and Secretary
of Health and Human Services ("Secretary"), for summary judgment dismissing
NHA's complaint.
The issue raised by this appeal is
whether the FDA has been delegated authority by Congress to regulate the
packaging of solid dosage dietary supplements and drugs for the purpose of
poison prevention. In an attempt to protect children from accidental iron
poisoning, the FDA promulgated regulations requiring drug and dietary supplement
manufacturers to distribute their products containing thirty milligrams or more
of iron per dosage unit in unit-dose packages [hereinafter "unit-dose packaging
rule"]. In response, NHA, an association including manufacturers and
distributors of iron-containing dietary supplements, filed a complaint seeking
both a declaration that the regulations were "invalid and without legal force
and effect" and a permanent injunction barring the defendants from enforcing the
regulations. The basis [**3] for NHA's claims is that the FDA lacked
statutory authority to promulgate and enforce poison prevention packaging
regulations.
The FDA argues that it acted pursuant to
the broad authority delegated to it by the Food, Drug and Cosmetic Act ("FDC
Act"), 21 U.S.C. §§ 301, et seq., to regulate dietary supplements and drugs for
safety. Specifically, the FDA points to the "injurious to health" provisions of
the FDC Act as the primary source of statutory authority for its unit-dose
packaging rule, n1 and to the "current good manufacturing practices" provisions
of the FDC Act as an alternative basis for the rule. n2
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n1 See 21 U.S.C. §§ 342(a)(4) (food/dietary
supplements), 351(a)(2)(A) (drugs).
N2 See
21 U.S.C. §§ 342(g) (dietary supplements), 351(a)(2)(B) (drugs).
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NHA argues principally that
in 1972, Congress transferred jurisdiction over the Poison Prevention Packaging
Act ("PPP Act") and subject matter within the scope of the PPP
Act [**4] from the FDA to the Consumer Product Safety Commission
("CPSC") by enacting the Consumer Product Safety Act ("CPS Act"). See 15 U.S.C.
§§ 1471 et seq. (PPP Act); 15 U.S.C. §§ 2051 et seq. (CPS Act). According to
NHA, authority to regulate "poison prevention packaging," was exclusively vested
in the CPSC and, therefore, the FDA overstepped its statutory authority by
issuing the unit-dose packaging rule. On appeal, the FDA does not dispute that
its rule is a poison prevention packaging rule, but rather contends that the
CPSC and the FDA share concurrent, overlapping authority to promulgate and
enforce poison prevention packaging regulations. NHA responds that even if we
decide that the CPS Act left open the possibility that [*95] the
CPSC and the FDA have concurrent jurisdiction over poison prevention packaging,
the FDA's proffered construction of the FDC Act is impermissible.
The District Court agreed with the FDA's position and held
that the defendants prevail under either prong of a Chevron analysis. See
Chevron U.S.A., Inc. v. Natural Resources Def. Council, Inc., 467 U.S. 837,
842-43, 81 L. Ed. 2d 694, 104 S. Ct. 2778 (1984). [**5] The District
Court dismissed NHA's argument regarding the CPS Act's transfer of regulatory
authority from the FDA to the CPSC by concluding that NHA "has not provided
sufficient evidence for the Court to conclude that in passing the [PPP Act] or
transferring its administration to the CSPC[,] Congress intended to eliminate
entirely the authority of the FDA to regulate the packaging of drugs and dietary
supplements when it finds it to be injurious to the health of consumers."
Memorandum and Order, 97 CV 5042(SJ) at 6 (E.D.N.Y. Nov. 1, 2000). The District
Court also reasoned that NHA failed to "successfully show[] that the [PPP Act]
and the FDC Act are irreconcilable such that an inquiry into whether there was
an implied repeal would be justified at this time." Id.
We conclude that the provisions of the FDC Act relied upon by the FDA
unambiguously fail to provide the FDA with authority to regulate packaging for
poison prevention purposes. The provisions that the FDA relies upon are plainly
limited to delegation of authority to the FDA to regulate conditions under which
a drug or dietary supplement product may be adulterated precisely to prevent the
manufacture and distribution [**6] of adulterated products. The risk
of accidental poisoning that the FDA sought to address through its unit-dose
packaging regulation is unrelated to adulteration under any reasonable
interpretation of that term. Accordingly, we reverse and remand.
I. BACKGROUND
The facts in this case are
undisputed. We briefly summarize the relevant facts and note that an extensive
administrative record has been developed by the FDA. See, e.g., Final Rule,
Iron-Containing Supplements and Drugs: Label Warning Statements and Unit-Dose
Packaging Requirements, 62 Fed. Reg. 2218 (Jan. 15, 1997); Proposed Rule, 59
Fed. Reg. 51,030 (Oct. 6, 1994).
This case involves a
challenge to an FDA rule requiring that solid dose dietary supplements and drugs
containing thirty milligrams or more of iron per dosage unit be packaged in
"unit-dose packaging." 62 Fed. Reg. 2218. "Unit-dose packaging" means "a method
of packaging a product into a nonreusable container designed to hold a single
dosage unit intended for administration directly from that container,
irrespective of whether the recommended dose is one or more than one of these
units." 21 C.F.R. §§ 111.50 [**7] (dietary supplements), 310.518(a)
(drugs).
The challenged regulation was issued in
response to a widespread problem of "acute iron poisonings, including deaths, in
children less than 6 years of age attributable to accidental overdoses of
iron-containing products." 62 Fed. Reg. at 2218; see also 59 Fed. Reg. at
51,032-36. Data obtained by the FDA showed that from 1986 through 1992, there
were nearly 63,000 reports to poison control centers of iron overdoses involving
adult products, with over 47,000 of these reports involving children under six
years of age. Id. at 51,032. For pediatric iron-containing products, there were
over 76,000 reports during the same time period, including over 69,000 reports
involving children under six years of age. Id.
[*96] According to evidence presented by the American
Association of Poison Control Centers ("AAPCC"), iron products are a leading
cause of poisoning deaths in children under six years of age. See id. Iron
poisoning is a particular threat to young children because of their lower body
weight, which raises the likelihood of serious injury or death in some cases.
Id. at 51,031. [**8] In addition, many iron-containing tablets
resemble candy and are therefore particularly appealing to young children. See
62 Fed. Reg. at 2231.
In October 1994, following
several citizen petitions requesting that the FDA address the iron poisoning
problem, the FDA issued a proposed rule requiring a new warning label and
unit-dose packaging for products containing thirty milligrams or more of iron
per dosage unit. 59 Fed. Reg. at 51,057-58. The proposed rule was revised on
February 16, 1995, and the comment period reopened after the passage of the
Dietary Supplement Health and Education Act ("DSHEA") of 1994, Pub. L. No.
103-417, 108 Stat. 4325. See 60 Fed. Reg. 8989 (1995).
On January 15, 1997, the FDA issued its final rule. 62 Fed. Reg. 2218.
The rule requires unit-dose packaging for drug products and dietary supplements
offered in solid oral dose form that use iron and iron salts as iron sources and
contain thirty milligrams or more of iron per dosage unit. 21 C.F.R. §§ 111.50
(dietary supplements), 310.518 (drugs). The scientific analysis and public
health considerations underlying the rule are [**9] set forth in the
Federal Register publications and show that the action was taken in response to
the large number of acute iron poisonings in children under the age of six. 62
Fed. Reg. 2218, 2229. The FDA determined that requiring individually-dosed
packaging would limit the number of capsules or tablets a child could consume if
the child accidentally gained access to the product.
Notably, in its Proposed Rule, the FDA expressly acknowledged the
statutory authority of the CPSC under the CPS Act and the PPP Act as well as the
existence of the CPSC's special packaging regulations pertaining to products
containing iron. 59 Fed. Reg. at 51,047, 51,049. In its Final Rule, the FDA
explained that it intended "to reduce the risk of accidental iron poisonings of
young children" by supplementing and strengthening "the existing requirements of
the [CPSC] for child-resistant packaging for household substances." 62 Fed. Reg.
at 2218; see also 59 Fed. Reg. at 51,038. The FDA amended the wording of its
proposed regulations before issuing them in final form to conform to the CPSC's
request n3 that the FDA clarify that manufacturers of [**10]
iron-containing products must comply with both the CPSC child-resistant
packaging regulations and the FDA unit-dose packaging regulations. See 62 Fed.
Reg. at 2228; 21 C.F.R. §§ 111.50, 310.518 (stating that iron-containing
products subject to the unit-dose packaging regulations are also subject to the
child-resistant special packaging regulations).
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n3 The FDA argues that by submitting comments on the FDA's
proposed rule, the CPSC endorsed the FDA's exercise of jurisdiction and
implicitly interpreted the CPS Act, and further that such an interpretation is
entitled to deference. We disagree. The comments were submitted by CPSC staff,
who expressly noted that the comments had not been reviewed or approved by the
CPSC Commissioners.
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The
Final Rule became effective on July 15, 1997, and NHA filed its complaint
seeking declaratory and injunctive relief on August 29, 1997. After a hearing at
which both parties agreed that no material factual issues were in dispute, the
parties [**11] filed motions for summary judgment in
[*97] April 1998. In an order entered November 6, 2000, the district
court granted summary judgment to the FDA. NHA filed a timely notice of
appeal.
II. DISCUSSION
A. Analytical Framework
The issue presented by
this appeal is whether the FDA acted pursuant to congressionally delegated
authority in promulgating its unit-dose packaging rule. We review the district
court's analysis of this issue de novo. When an administrative agency asserts
jurisdiction to regulate a particular subject matter of public concern based on
its construction of a statute that it administers, n4 our analysis is governed
by Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837,
81 L. Ed. 2d 694, 104 S. Ct. 2778 (1984); see, e.g., Food and Drug
Administration v. Brown & Williamson Tobacco Corp., 529 U.S. 120, 132, 146
L. Ed. 2d 121, 120 S. Ct. 1291 (2000). As the Supreme Court reiterated in Brown
& Williamson:
Under Chevron, a reviewing court
must first ask whether Congress has directly spoken to the precise question at
issue. If Congress has done so, the inquiry is at an end; the
court [**12] must give effect to the unambiguously expressed intent
of Congress. But if Congress has not specifically addressed the question, a
reviewing court must respect the agency's construction of the statute so long
as it is permissible. Such deference is justified because the responsibilities
for assessing the wisdom of such policy choices and resolving the struggle
between competing views of the public interest are not judicial ones, and
because of the agency's greater familiarity with the ever-changing facts and
circumstances surrounding the subjects regulated.
Id. (internal quotation marks and citations
omitted).
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n4 As noted above,
the FDA maintains that it promulgated its unit-dose packaging rule pursuant to
the "injurious to health" and/or "current good manufacturing practices"
provisions of the FDC Act, a statute that the FDA administers.
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The District Court applied
Chevron and held that the defendants prevail under either prong because (1) the
plain meaning of the relevant provisions of the FDC [**13] Act
support the FDA's authority to issue its unit-dose packaging rule and
Congressional intent to delegate such authority is clear; and (2) even assuming
arguendo "that there was ambiguity in the meaning of the FDC Act," "the FDA has
acted based on a reasonable and permissible construction of that statute." See
Chevron, 467 U.S. at 842-43. For the reasons discussed below, we disagree and
hold that the FDC Act provisions relied upon by the FDA unambiguously fail to
provide it with authority to prescribe its unit-dose packaging rule.
B. The FDC Act
a. General
construction
The FDC Act provides the FDA with broad
authority to regulate food, drug and dietary supplement n5 products to ensure
[*98] public health and safety. Act of June 25, 1938, 52 Stat. 1040.
It is well-settled that the FDC Act should receive a liberal construction when,
as here, the FDA has taken remedial action in response to a perceived public
health problem. See, e.g., United States v. Dotterweich, 320 U.S. 277, 280, 88
L. Ed. 48, 64 S. Ct. 134 (1943) ("The purposes of this legislation thus touch
phases of the lives and health of people which, in the
circumstances [**14] of modern industrialism, are largely beyond
self-protection. Regard for these purposes should infuse construction of the
legislation if it is to be treated as a working instrument of government and not
merely as a collection of English words."). "When we are dealing with the public
health, the language of the Food, Drug and Cosmetic Act should not be read too
restrictively, but rather as 'consistent with the Act's overriding purpose to
protect the public health.'" United States v. Nova Scotia Food Prods. Corp., 568
F.2d 240, 246 (2d Cir. 1977) (quoting United States v. Bacto-Unidisk, 394 U.S.
784, 798, 22 L. Ed. 2d 726, 89 S. Ct. 1410 (1969)). As we further stated in Nova
Scotia, "when agency rulemaking serves the purposes of the statute, courts
should refuse to adopt a narrow construction of the enabling legislation which
would undercut the agency's authority to promulgate such rules. . . . [Rather,]
the court's role should be one of constructive cooperation with the agency in
furtherance of the public interest." 568 F.2d at 246.
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n5 Dietary supplements are considered "foods"
for the purposes of the adulterated food provisions of the FDC Act. See 21
U.S.C. § 321(ff) (final paragraph). The original FDC act of 1934 did not include
dietary supplements, but various subsequent amendments added explicit FDA
jurisdiction over dietary supplements, which was similar, but not identical, to
its jurisdiction over foods. See, e.g., Dietary Supplement Health and Education
Act of 1994, Pub. L. No. 103-417, 108 Stat. 4325. Ultimately, a 2000 amendment
added to the chapter's definitions section: "a dietary supplement shall be
deemed to be a food within the meaning of this chapter." 21 U.S.C. § 321(ff).
For the purposes of this opinion we need not delve further, because at no point
did the FDA receive a delegation of authority sufficient to impose a requirement
of unit dose packaging for the dietary supplements in this case.
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Of course,
reading the FDC Act in a liberal manner and working in "constructive
cooperation" with the FDA does not obviate our responsibility to ensure that the
regulatory authority exercised by the FDA is actually rooted in the statute. It
is the statutory text that delegates power to an administrative agency. See
Brown & Williamson, 529 U.S. at 132-33; Oncale v. Sundowner Offshore Servs.,
Inc., 523 U.S. 75, 79, 140 L. Ed. 2d 201, 118 S. Ct. 998 (1998) ("It is
ultimately the provisions of our laws rather than the principal concerns of our
legislators by which we are governed."). When we interpret a statute and attempt
to divine the intended scope of a delegation, statutory purpose, to the extent
that such purpose is evident, sets boundaries and requires consistency between
purpose and textual interpretation. Statutory purpose, however, is not in itself
a source of delegated power. Thus, we cannot simply conclude that because the
FDA is charged with regulation of food and drugs in order to protect public
health, and its unit-dose packaging regulations were promulgated in response to
a public health problem, therefore the FDA acted pursuant to
delegated [**16] authority. Rather, we must look to the statutory
text of the FDC Act.
b. Specific Construction
In promulgating its unit-dose packaging regulations, the
FDA relied upon two sets of provisions in the FDC Act which define what
qualifies as an "adulterated product." n6 First, the FDA relied upon provisions
that deem a product adulterated if it "has been prepared, packed, or held under
insanitary conditions whereby it may have been contaminated with filth, or
whereby it may have been rendered injurious to [*99] health." 21
U.S.C. § 351(a)(2)(A) (relating to drugs). n7 Second, the FDA relied upon those
provisions that allow the FDA to deem a product adulterated if it has been
"packed" under "conditions" that do not conform to "current good manufacturing
practices" ("CGMP provisions"), together with provisions allowing the FDA to
prescribe permissible manufacturing practices. See 21 U.S.C. §§ 342(g) (dietary
supplements), 351(a)(2)(B) (drugs). n8
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n6 A significant portion of the FDC Act is concerned with definitions
of different adulterated products, as well as mechanisms for removing them from
the stream of commerce and punishments for their manufacturers. See, e.g., 21
U.S.C. §§ 331, 332 and 333. [**17]
n7 Dietary supplements are covered under the rubric of
"foods" by a nearly identical provision, 21 U.S.C. § 342(a)(4), upon which the
FDA also relied for authority.
n8 In 1962,
Congress amended the FDC Act to strengthen and broaden the existing regulatory
structure by, inter alia, providing the FDA with additional authority to prevent
the distribution of adulterated products by regulating manufacturing practices
beyond the confines of the manufacturing plant. See Drug Amendments of 1962,
Pub. L. No. 87-781, § 101, 76 Stat. 780, 780-81. The 1962 Amendments added the
CGMP provision for drugs, which deems a product "adulterated," if
it is a drug and the methods used in, or the facilities or
controls used for, its manufacture, processing, packing, or holding do not
conform to or are not operated or administered in conformity with current good
manufacturing practice to assure that such drug meets the requirements of this
chapter as to safety and has the identity and strength, and meets the quality
and purity characteristics, which it purports or is represented to
possess;
21 U.S.C. §
351(a)(2)(B) (emphasis added). The Dietary Supplement Health and Education Act
of 1994, Pub. L. No. 103-417, § 3(a), 108 Stat. 4325, 4327 further amended the
FDC Act and added the dietary supplement CGMP, which deems a product
"adulterated," if
it is a dietary supplement and it has been prepared, packed, or
held under conditions that do not meet current good manufacturing practice
regulations, including regulations requiring, when necessary, expiration date
labeling, issued by the Secretary under subparagraph (2).
21 U.S.C. § 342(g)(1). Subparagraph (2) of §
342(g) provides that "the Secretary may by regulation prescribe good
manufacturing practices for dietary supplements. Such regulations shall be
modeled after current good manufacturing practice regulations for food and may
not impose standards for which there is no current and generally available
analytical methodology." 21 U.S.C. § 342(g)(2).
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- - - [**18]
1. Chevron Step One
Under the first step of the Chevron analysis, we must
determine whether Congress has spoken unambiguously on the scope of the FDA's
delegated authority. See Chevron, 467 U.S. at 842-43. Our analysis begins with
the statutory text of the FDC Act. Each statutory provision relied upon by the
FDA delegates authority to the FDA to regulate conditions under which a drug or
dietary supplement product is deemed adulterated. See 21 U.S.C. §§ 342(a)(4),
351(a)(2)(A), 351(a)(2)(B), 342(g). The term adulterate means "to corrupt,
debase, or make impure by the addition of a foreign or baser substance: prepare
(as for sale) with one or more ingredients included that are not part of the
alleged substance." Webster's Third New International Dictionary of the English
Language (14th ed. 1963); see United States v. Wiesenfeld Warehouse Co., 376
U.S. 86, 89, 11 L. Ed. 2d 536, 84 S. Ct. 559(1964) ("The separate offense of
adulteration . . . is concerned solely with deterioration or contamination of
the commodity itself."). Thus, a grant of authority to regulate "adulterated"
products plainly categorizes the types [**19] of health and safety
risks that Congress was concerned with and that the FDA was delegated authority
to address. See id. We find the plain meaning of the term imposes an important
textual limit on the scope of Congress's delegation to the FDA under the
"injurious to health" and the CGMP provisions.
[*100] The adulteration provisions of the FDC Act,
including the "injurious to health" and CGMP provisions, delegate authority to
the FDA to delineate by regulation conditions under which a product may be
deemed adulterated as a matter of law. n9 As a result, the FDA is empowered to
regulate manufacturing processes and conditions that give rise to a risk of
adulteration. See, e.g., United States v. An Article of Drug, 484 F.2d 748, 751
(7th Cir. 1973)(per curiam)("Current good manufacturing practice [standards are]
designed to insure the production of unadulterated drugs."); United States v.
Undetermined Quantities of Various Articles of Device etc., 800 F. Supp. 499,
502 (S.D. Tex. 1992); United States v. 789 Cases, More or Less, of Latex
Surgeons' Gloves, 799 F. Supp. 1275, 1286 (D. P. R. 1992)(rev'd on other
grounds, 13 F.3d 12 (1st Cir. 1993)); [**20] United States v. Bel-Mar
Lab., 284 F. Supp. 875, 881 (E.D.N.Y. 1968).
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n9 It is well-settled that the government need not prove
that a particular product was adulterated in fact in order for that product to
be "deemed adulterated." See, e.g., United States v. Undetermined Quantities of
Various Articles of Device etc., 800 F. Supp. 499, 502 (S.D. Tex. 1992) ("In
order to prove a claim of adulteration of a device based upon noncompliance with
GMP (Good Manufacturing Practices) regulations, the Government need not
establish that the device is actually deficient as a result of the GMP
violation."); United States v. 789 Cases, More or Less, of Latex Surgeons'
Gloves, 799 F. Supp. 1275, 1286 (D. P. R. 1992) (citing cases).
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Sections 342(a)(4)
(food/dietary supplements) and 351 (a)(2)(A) (drugs) are each directed toward
the control of insanitary conditions causing contamination or rendering the
food, dietary supplement or drug potentially harmful. The text of the
provisions [**21] deems a product to be adulterated "if it has been .
. . packed . . . under insanitary conditions whereby it may have become
contaminated with filth, or whereby it may have been rendered injurious to
health." Id. The requirement of single unit dose packaging simply bears no
relationship to the unambiguous authority to protect against "insanitary
conditions" that may cause contamination or render the product injurious.
The FDA's reliance on its authority to protect against
adulterated products is misplaced because the public health risks that it seeks
to address with the unit-dose packaging rule are so dissimilar to adulteration
risks. Absent packaging, the iron-containing products of concern in this case
are not banned by the FDA as unsafe, even though the products naturally pose
some safety risks to consumers, because the products are considered safe for
their intended use. See, e.g., Brown & Williamson, 529 U.S. at 142 ("A
fundamental precept of the FDCA is that any product regulated by the FDA--but
not banned--must be safe for its intended use."); id. ("Various provisions of
the Act make clear that ['safe for its intended use'] refers to the
safety [**22] of using the product to obtain its intended effects,
not the public health ramifications of alternative administrative actions by the
FDA."); id. at 133-34 (same).
The FDA argues that where
health risks associated with an unintended yet predictable use (or misuse) of an
unadulterated product, such as the accidental ingestion of iron-containing
products by children, may be alleviated through special packaging, failure to
use such packaging renders the product adulterated. This argument fails,
however, because the adulteration provisions plainly concern the dangers of
"deterioration or contamination of the [product] itself," not unintended use (or
misuse) of the product. Wiesenfeld Warehouse Co., 376 U.S. at 89. Regardless of
whether the product is used or misused in [*101] an unintended
manner, the iron-containing product is not subject to contamination,
deterioration, or any other change that causes it to be unsafe. We reject the
FDA's construction because the risk that a product will be used or misused in an
unintended manner is simply unrelated to "adulteration" under any reasonable
interpretation of that term.
In a sense, the FDA argues
that inadequately [**23] protective packaging is itself an
adulterant. This argument is nonsensical, however, because packaging does not
cause a deleterious change in the product. With or without packaging, the
iron-containing product is not subject to contamination, deterioration, or any
other change that causes it to be unsafe. The FDA does not argue, nor is there
evidence in the record to support the argument, that the FDA sought to prescribe
unit-dose packaging based on a finding that other types of packaging might cause
a deleterious change in the iron-containing product. See, e.g., United States v.
Dino, 919 F.2d 72, 75 (8th Cir. 1990) (adulteration of cough syrup where syrup
may have been contaminated by material used to make storage jugs). n10
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n10 Our conclusion that the FDA
has plainly not been delegated authority under the CGMP provisions of the FDC
Act to regulate packaging except to address adulteration risks will not
invalidate or call into question the validity of the FDA's existing CGMP
regulations. Our review of the CGMP regulations that touch on packaging shows
that the regulations directly address adulteration risks. Various drug CGMP
regulations set forth process-oriented requirements, e.g., inspections,
pertaining to packaging and labeling controls. See 21 C.F.R. §§ 211.122,
211.130, 211.134. In particular, the FDA refers us to its tamper-evident
packaging CGMP regulation. See 21 C.F.R. § 211.132 (requiring tamper-evident
packaging for over-the-counter drugs). Although the FDA attempts to draw a
parallel between its tamper-evident packaging regulation and its unit-dose
packaging regulation to suggest that both are "designed to prevent injuries to
consumers that are caused by the intentional misuse of the drug," Appellees' Br.
at 29 (emphasis in original), we find the argument misleading. As expressly
stated in the tamper-evident packaging regulation, the purpose of requiring such
packaging is to "reduce the likelihood of successful tampering and to increase
the likelihood that consumers will discover if a product has been tampered
with." See 21 C.F.R. § 211.132(b). The risk of drug product tampering is clearly
a risk of adulteration and not intentional misuse of the drug product.
The FDA's food CGMP regulations, upon which dietary
supplement CGMP regulations must be modeled, 21 U.S.C. § 342(g)(2), also
directly address adulteration risks. See, e.g., 21 C.F.R. § 110.80(b)(13)
(packaging of food must be performed in such a way that the food is protected
from contamination); id. § 110.80(b)(14) (requiring procedures that prevent the
growth of microorganisms, including "protecting finished food from moisture
pickup, by use of a moisture barrier or by other means"). Compliance with the
food packaging CGMP, § 110.80(b)(13), may be accomplished through various
methods, including: (I) the use of quality-control procedures, (ii) "cleaning
and sanitizing of all food-contact surfaces and food containers," (iii) "using
materials for food containers and food-packaging materials that are safe and
suitable, as defined in § 130.3(d)," (iv) "providing physical protection from
contamination, particularly airborne contamination," and (v) "using sanitary
handling procedures." Id. § 110.80(b)(13)(i)-(v).
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- - - [**24]
We therefore hold that the
plain language of both the injurious to health and the CGMP provisions of the
FDC Act unambiguously fail to delegate to the FDA authority to require
manufacturers of iron-containing products to use unit-dose packaging in the
absence of any showing by the FDA that iron-containing product may be
adulterated without such packaging. See Chevron, 467 U.S. at 842-43.
2. Chevron Step Two
Even if there
were some ambiguity in the statutory text of the FDC Act, we [*102]
would find the FDA's proposed construction impermissible. Under the second prong
of Chevron, we would find it necessary to analyze not only the FDC Act, which
the FDA administers, but also the PPP Act and the CPS Act, both of which are
administered by the CPSC and not the FDA. With respect to the appropriate
framework for analyzing the impact of the PPP Act and CPS Act on the
construction of ambiguous terms in the FDC Act, the Supreme Court provided the
following instructive guidance in Brown & Williamson:
At the time a statute is enacted, it may have a range of plausible
meanings. Over time, however, subsequent acts can shape or focus those
meanings. The classic judicial [**25] task of reconciling many laws
enacted over time, and getting them to make sense in combination, necessarily
assumes that the implications of a statute may be altered by the implications
of a later statute. This is particularly so where the scope of the earlier
statute is broad but the subsequent statutes more specifically address the
topic at hand. As we recognized recently in United States v. Estate of Romani,
"a specific policy embodied in a later federal statute should control our
construction of the [earlier] statute, even though it has not been expressly
amended." 523 U.S. [517,] 530-531, 140 L. Ed. 2d 710, 118 S. Ct. 1478
[(1998)].
Brown &
Williamson, 529 U.S. at 143 (quotation marks and citation omitted, alterations
to Romani in original); n11 see also id. at 133 ("The meaning of one statute may
be affected by other Acts, particularly where Congress has spoken subsequently
and more specifically to the topic at hand.").
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n11 In Brown & Williamson, the Supreme Court
emphasized the importance of six statutes, enacted by Congress subsequent to the
enactment of the FDC Act, that specifically addressed tobacco products. 529 U.S.
at 137-38.
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End Footnotes- - - - - - - - - - - - - - [**26]
In Romani, for example, the Supreme Court explained that the government
could not side-step the Tax Lien Act of 1966, 26 U.S.C. § 6321 et seq., by
relying on the federal priority statute, 31 U.S.C. § 3713(a). 523 U.S. at 534.
In its analysis, the Court emphasized that a later-enacted, more specific,
comprehensive statute that targets the specific subject matter at issue in the
case controls the construction of a more general statute when there is a
potential conflict or discrepancy between the burdens imposed upon affected
entities. See id. 523 U.S. at 530-32, 534. The Court held that the federal
government was precluded from executing the equivalent of a "secret lien," by
relying on the federal priority statute, "as a substitute for the expressly
authorized tax lien that Congress has said 'shall not be valid' in a case of
this kind." Id. 523 U.S. at 534. Simply put, the government could not circumvent
the limitations imposed upon it by the Tax Lien Act in a case involving a
federal tax claim by relying on the broadly applicable federal priority
statute.
The principles enunciated in Romani
and [**27] Brown & Williamson would clearly apply in this case,
if it were necessary to shift our analysis into the second prong of Chevron.
Congress enacted the PPP Act in 1970, subsequent to the enactment of the FDC Act
in 1938 and the drug CGMP amendment in 1962. In doing so, Congress specifically
targeted the problem of accidental poisoning of children caused by the ingestion
of (or exposure to) a wide range of ordinary household products, including drugs
and medicines, n12 with a comprehensive [*103] yet circumscribed
regulatory solution. Specifically, the PPP Act conferred to the FDA authority to
establish and enforce regulatory standards for the "special packaging" n13 of
any "household substance" n14 found to be a hazard to children (i.e., poison
prevention packaging). It is particularly important that the PPP Act expressly
set forth comprehensive "instructions," including specific regulatory
constraints, as to how this authority should be exercised: First, special
packaging standards can only be established where "packaging is required to
protect children from serious personal injury or serious illness resulting from
handling, using or ingesting [a] substance." 15 U.S.C. § 1472 (a)(1)
[**28] . Second, special packaging must be "technically feasible,
practicable, and appropriate." Id. § 1472(a)(2). Third, standards must be
established pursuant to the following considerations listed in the PPP Act:
(1) the reasonableness of such standard;
(2) available scientific, medical, and engineering data concerning
special packaging and concerning childhood accidental ingestions, illness, and
injury caused by household substances;
(3) the
manufacturing practices of industries affected by this Act; and
(4) the nature and use of the household
substance.
[*104] Id. §
1472(b). Finally, the PPP Act expressly prohibited the FDA from prescribing
"specific packaging designs, product content, package quantity, or with [one]
exception . . . labeling." Id. § 1472(d). Congress believed such decisions
should be left to industry. Id.; see H. R. Rep. No. 91-1642, reprinted in 1970
U.S.C.C.A.N. at 5332-33, 5336.
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- - Footnotes - - - - - - - - - - - - - - -
n12 In an opening statement before the Subcommittee for Consumers of
the United States Senate Committee on Commerce for a hearing on S. 2162, the
bill eventually enacted as the PPP Act, Senator Frank E. Moss, Chairman of the
Subcommittee, described the problem as follows:
The problem is clear. At this very moment some small child is
innocently exploring the limited environment of his home. In the process he is
poking into the medicine cabinet, reaching into his mother's purse, crawling
under the kitchen or bathroom sink, or rummaging in the garden shed and
possibly swallowing a potential poison. Poisoning by household substances is
the most common medical emergency facing young children. The loss that it
imposes - in pain, suffering, and death -- is incalculable.
Hearings on S. 2162 Before the Consumer Subcomm. of
the Senate Comm. On Commerce, 91st Cong. 1 (1969)(Statement of Senator Frank E.
Moss). As Senator Moss further explained in his opening statement:
Two tactics, treatment and education against the hazards of
household substances, have predominated in the fight against accidental
poisonings. The first tactic is exemplified by the operations of [FDA] Poison
Control Centers where information is collected to speed and improve the
treatment of poisoning victims. The second tactic is exemplified by the
familiar warning, "Keep out of the reach of children." . . . . S. 2162 [and
thus, the PPP Act] would begin strong action on a third tactic - that of
prevention. [It] would authorize the Secretary of Health, Education, and
Welfare to require packaging that would prevent children from getting into
hazardous substances. The possibility of poisoning is reduced at the primary
level by keeping children and hazardous substances separated.
Id. at 1-2; see also H. R. Rep. No. 91-1642,
reprinted in 1970 U.S.C.C.A.N. 5326 (PPP Act addresses risk of accidental
exposure). [**29]
n13 "Special packaging" is defined as "packaging that is designed or
constructed to be significantly difficult for children under five years of age
to open or obtain a toxic or harmful amount of the substance contained therein
within a reasonable time and not difficult for normal adults to use properly,
but does not mean packaging which all such children cannot open or obtain a
toxic or harmful amount within a reasonable time." 15 U.S.C. § 1471(4). There is
no doubt that the FDA's unit-dose packaging rule constitutes a "special
packaging" standard within the meaning of the PPP Act. As noted above, the
Government does not dispute that the FDA's rule constitutes a poison prevention
packaging regulation but rather argues that it has concurrent jurisdiction with
the CPSC to promulgate such a regulation.
n14 "Household substances" were defined to include, inter alia, "a
food, drug, or cosmetic," within the meaning of the FDC Act. Id. §
1471(2)(B).
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End Footnotes- - - - - - - - - - - - - -
In 1972, the
FDA was stripped of its PPP Act authority when Congress enacted the CPS Act,
created the CPSC for the [**30] purpose of consolidating regulatory
efforts pertaining to consumer product safety, and transferred the FDA's
authority to administer and enforce the PPP Act to the CPSC. n15 See Consumer
Product Safety Act, Pub. L. No. 92-573, (1972); Wahba v. H & N Prescription
Ctr. Inc., 539 F. Supp. 352, 354 (E.D.N.Y. 1982) (discussing history of CPS
Act).
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- - - - - - - - -
n15 Specifically,
Congress provided as follows:
The functions of the Secretary of Health, Education, and Welfare
under . . . the [PPP Act] are transferred to the [CPSC]. The functions of the
Secretary of Health, Education, and Welfare under the [FDC Act], to the extent
such functions relate to the administration and enforcement of the [PPP Act],
are transferred to the [CPSC].
15 U.S.C. § 2079(a). Congress further provided that:
For purposes of this section, (1) the term "function" includes
power and duty, and (2) the transfer of a function, under any provision of
law, of an agency or the head of a department shall also be a transfer of all
functions under such law which are exercised by any office or officer of such
agency, or department.
Id. §
2079(f).
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Footnotes- - - - - - - - - - - - - - [**31]
Following Romani and Brown & Williamson, we would not defer to the
FDA regarding its interpretation of ambiguous language in the FDC Act where
doing so would allow the FDA to circumvent the detailed regulatory scheme,
including express constraints, set forth by Congress in the PPP Act. See United
States v. Estate of Romani, 523 U.S. 517, 530-32, 534, 140 L. Ed. 2d 710, 118 S.
Ct. 1478 (1998); Brown & Williamson, 529 U.S. at 125-26, 159.
While the PPP Act does not directly constrain the FDA
because the FDA Act no longer administers that Act, the fact that Congress
transferred PPP Act authority from the FDA to the CPSC only weakens the FDA's
argument that it retains delegated authority to regulate poison prevention
packaging. Thus, even assuming arguendo that the FDC Act provisions relied upon
by the FDA were ambiguous, we would find the FDA's interpretation of those
provisions impermissible because (1) the PPP Act specifically and unambiguously
targets the accidental poisoning problem and prescribes a specific regulatory
approach to addressing the problem through packaging standards, (2) the CPS Act
unambiguously transferred authority to administer and enforce the PPP Act from
the FDA to the CPSC, and (3) the [**32] FDA's assertion of concurrent
jurisdiction rings a discordant tone with the regulatory structure created by
Congress. See id. at 132-33.
Finally, we note that the
FDA's dubious construction of the "injurious to health" and CGMP provisions
would further cement our conclusions under the second prong of Chevron that its
proffered interpretation is not reasonable. The FDA relies on select terms from
the statutory text piecemeal and fails to give meaning to other important terms.
For example, with respect to the injurious to health provisions, n16 the FDA
fails to recognize (or even [*105] attempt to grapple with) the fact
that the phrase "prepared, packed, or held under insanitary conditions" has
consistently been interpreted to refer to the place where a product is prepared,
packed, or held. See Supreme Beef Processors, Inc. v. U.S. Dep't of Agric., 275
F.3d 432, 442 n.38 (5th Cir. 2001) (citing cases). Furthermore, the FDA
completely ignores the term "renders," which "indicates that a deleterious
change in the product must occur while it is being 'prepared, packed or held'
owing to insanitary conditions." Id. at 440 (interpreting
identical [**33] language in the Federal Meat Inspection Act). We,
however, must "give effect, if possible, to every clause and word of a statute."
Id. at 440 (quoting Duncan v. Walker, 533 U.S. 167, 174, 150 L. Ed. 2d 251, 121
S. Ct. 2120 (2001)); see also Williams v. Taylor, 529 U.S. 362, 404, 146 L. Ed.
2d 389, 120 S. Ct. 1495 (2000) (describing this rule as a "cardinal principle of
statutory construction"). As discussed above with respect to adulteration, there
is simply no basis for concluding that packaging causes "a deleterious change"
to iron-containing products.
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- Footnotes - - - - - - - - - - - - - - -
n16 Similarly, with respect to the CGMP provisions, the FDA fails to
define "current good manufacturing practice" or explain how the process-oriented
provisions reach packaging design. We find unconvincing and unhelpful the FDA's
mere assertions that (1) "manufacturers must 'pack' their products in accordance
with 'current' good manufacturing practices to ensure the products' 'safety'"
and (2) the unit-dose packaging rule was promulgated as a CGMP to ensure safety.
Appellees' Brief at 28.
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III. CONCLUSION
For the reasons
set forth in this opinion, the judgment of the district court below is REVERSED
and the matter is REMANDED to the district court to fashion an appropriate
remedy consistent with this opinion.