WalMart Settles Cornstarch Natural Foods Class Action

In a quest to live healthy lives, many Americans are looking to purchase natural foods which are essentially GMO-free foods. However, that’s not always what they get, despite what certain product labels may claim.

Karlin Foods, in conjunction with Wal-Mart, began to sell cornstarch that was labeled 100% natural in August 2010. However, this all natural label was proven to be false, as the product was found to be artificial, synthetic, and genetically modified, prompting Wal-Mart to settle an all natural foods class action lawsuit over the labeling of the cornstarch product.

The proposed all natural foods class action settlement centers on the labeling for Wal-Mart’s Great Value All Natural Cornstarch. The all natural lawsuit claims Great Value All Natural Cornstarch’s labeling was false and deceptive in that it led purchasers to believe that the product was all natural, when in fact it included genetically modified organisms or GMOs.

Wal-Mart and Karlin Foods deny they did anything wrong, inasmuch as no state or federal regulation or agency prohibits the cornstarch product from being labeled as all natural despite the presence of GMO in the product. However, the companies have agreed to the proposed settlement to avoid the cost and distraction of further litigation.

In agreeing to the settlement, Wal-Mart and Karlin Foods were also directed by the court to pay no more than $825,000 with $515,000 going to the all natural label class members and the rest to administrative expenses. This means that for each proven Great Value All Natural Cornstarch purchase, there would be a refund up to $8, and those without proof receiving up to $2. Further, the lead class plaintiff was awarded a $5,000 service award and $160,000 went to pay legal fees and expenses.

All Natural Food Labeling

So what constitutes “natural foods?” Natural foods, or all natural foods, are food products that contain about 70 percent organic ingredients, and those that are not subjected to pesticides can be labeled as organic, GMO free or 100% natural. In the case of meat, it consists of an animal that was fed organic feed and not injected with any hormones or antibiotics.

As a result, the law permits any complainant to come forward should the above requirements prove false or incorrect.

Deceptive Natural Food Labeling

In just a little over a decade, the natural foods industry has grown substantially. This is in part due to Americans becoming health conscious and their growing demand to eat foods that have a positive effect on their health.

Yet, food and beverage companies use numerous marketing tactics to deceive and manipulate consumers into buying their natural foods products as the natural or all natural label holds nearly $40 billion in purchasing power with the industry reaching$110 billion sales in 2013 alone.

Other types of deceptive or false natural food labels or natural food packaging that companies use include:

• Misleading “All Natural” Food Labels
• Deceptive “Preservative Free” Food Labels
• False Health or Food Allergy Claims
• Misleading Product Labels such as “Raised without Antibiotics,” “Grass Fed,” or “Free Range or Cage Free” claims

If you or someone you love has suffered because of a deceptive or misleading all natural food label, you may be able to file a natural food labeling lawsuit.

UPDATE: Instructions on how to file a claim for the All Natural Cornstarch settlement are now available! Click here or visit www.CornstarchSettlement.com for details.