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Economics

Federal Preemption vs. State Consumer Protection Laws

Quick fact

In Wyeth v. Levine (2009), the Supreme Court ruled that federal approval of a drug's label did not preempt a state lawsuit for inadequate warnings, while in Geier v. American Honda Motor Co. (2000), it held that federal safety standards did preempt a state crash-avoidance claim—showing how unpredictable preemption can be.

Why this is interesting

You buy a product that injures you, and you sue under your state's consumer protection law—only to hear the company argue that federal law 'preempts' your claim. How can federal rules erase your state's protections?