Los Angeles, CA: Kellogg', the maker of Kashi products, has agreed to a $5 million settlement, potentially ending a consumer fraud class action lawsuit that claimed Kashi' labeling was misleading and fraudulent.
Specifically, the lawsuit alleged that labeling on certain products used labels stating "All Natural"or "Nothing Artificial,"when in fact the products contain a variety of synthetic and artificial ingredients, such as pyridoxine hydrochloride, calcium pantothenate, hexane-processed soy ingredients, ascorbic acid, glycerin and sodium phosphate.
Under the terms of the settlement, Kellogg' has also agreed to stop using the labels "All Natural"and "Nothing Artificial". In a statement, Kellogg Co. said it stood by its advertising and labeling practices but that it would change its formulas or labels on Kashi products, nationally by the end of the year.
The settlement was filed May 2 in U.S. District Court in California and is subject to court approval.