Seventh Generation Reaches $4.5M ‘Natural’ Products Settlement

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Seventh Generation has agreed to pay $4.5 million to settle allegations it deceptively marketed and labeled many of its cleaning and personal care products as “natural,” “non-toxic” and “hypoallergenic” even though they contain non-natural ingredients, according to court documents filed July 1 in New York federal court.

The Seventh Generation class action lawsuit was initially filed in New York on Nov. 14, 2014 by plaintiff Tziva Rapoport-Hecht.

On Jan. 14, 2015, plaintiffs Maggie Tsan and Erica Wildstein filed a similar class action lawsuit against Seventh Generation on behalf of consumers throughout the United States who purchased the allegedly deceptively labeled products.

The proposed deceptive labeling settlement will resolve both class action lawsuits if it is approved.

The plaintiffs claim that Seventh Generation improperly used the term “natural” on its product labels even though they contain the antimicrobial preservatives methylisothiazolinone and benzisothiazolinone, which are synthetic ingredients.

By filing the Seventh Generation class action lawsuits, the plaintiffs sought to have the natural products company remedy its allegedly deceptive marketing and labeling of its products and compensate Class Members who purchased the allegedly mislabeled products.

Seventh Generation attempted to dismiss the deceptive labeling class action lawsuits but its attempts were unsuccessful. The settlement documents indicate that negotiations took place over the course of more than a year. The company subsequently agreed to pay $4.5 million to settle natural products class action settlement.

Under the terms of the proposed deceptive marketing class action lawsuit, Seventh Generation has agreed to remove the “All Natural” and “100% Natural” claims. It will also add clarifications about the non-toxic and hypoallergenic claims. Seventh Generation will also provide compensation to eligible claimants.

The plaintiffs seek to certify a Class that consists of all purchasers nationwide who bought allegedly mislabeled Seventh Generation products.

Although the settlement documents do not currently indicate which products will be eligible for benefits, Rapoport-Hecht’s class action lawsuit named the following five products as being allegedly mislabeled: Natural Laundry Detergent, Natural 4X Concentrated Laundry Detergent, Ultra Power Plus Natural Laundry Detergent, Natural Dish Liquid and Ultra Power Plus Natural Dish Liquid.

If the proposed Seventh Generation class action settlement is approved, Class Members who can provide a proof of purchase will be entitled to recover the full value of their purchases. Class Members without proof of purchase may receive a payment of half the value of their claimed purchases.

Claim filing instructions for the Seventh Generation class action settlement were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Jason P. Sultzer of the Sultzer Law Group; Michael R. Reese of Reese LLP; Jeffrey D. Kaliel of Tycko & Zavareeli LLP; and Melissa Wolchansky of Halunen Law.

The Seventh Generation False Advertising Class Action Lawsuit is Rapoport-Hecht v. Seventh Generation Inc., Case No. 7:14-cv-09087, in the U.S. District Court for the Southern District of New York.

UPDATE: The Seventh Generation false advertising class action settlement is now open. Click here to file a claim!