Frito-Lay Agrees to Settle ‘All Natural’ Labeling Class Action Lawsuit

Frito-Lay has agreed to end five years of litigation over labeling on its products that indicate they are “made with all natural ingredients” by changing its labels.

Several class action lawsuits were consolidated. The consolidated class action alleged that Frito-Lay misled consumers into thinking several of its products did not contain genetically modified ingredients, or “GMOs.”

Frito-Lay denied the claims, but said it couldn’t guarantee that genetically modified corn was not used in its products because bioengineered corn seeds make up about 90 percent of the U.S. corn supply.

The class action plaintiffs in the consolidated litigation noted that their main goal was to make Frito-Lay revise its labeling to remove indications that the products were “all natural.”

“Given the importance of the Products to Frito-Lay, and the prominence of the ‘Made With All Natural Ingredients’ in the marketing and labeling of the Products, Plaintiffs did not expect this litigation to be quick or easy or inexpensive; indeed, it was intense, complex, and resource-intensive,” state the class action plaintiffs in their motion for approval of the settlement agreement.

Under the terms of the settlement agreement, Frito-Lay will remove labeling that indicates that their products are made with all-natural ingredients. Additionally, the company has agreed to refrain from using “all natural” and similar terms unless permitted under federal laws regulating the use of ingredients in natural products for five years.

Class Members will not be entitled to an award under the settlement, however. Each of the lead plaintiffs will receive $5,000 and Frito-Lay will pay $2.1 million in attorney’s fees and costs. Further, the company will pay $215,000 to notify consumers about the labeling change.

Class Members have until Oct. 17 to object to the settlement agreement.

According to the Frito-Lay class action lawsuit, terms like “all natural” and “made with all natural ingredients” deceived consumers into thinking that Frito-Lay products did not contain GMOs. The products targeted by the class actions include Tostitos, SunChips and Fritos Bean Dip.

“Defendants’ conduct harms consumers by inducing them to purchase and consume the products containing GMOs on the false premise that the products are ‘all natural,’ and by inducing consumers to pay a premium price for the products,” said the plaintiffs in their class action lawsuit.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Ariana J. Tadler and Henry J. Kelston of Milberg LLP, and by Michael R. Reese and George V. Granade of Reese LLP.

The Frito-Lay Class Action Lawsuit consolidated case is Frito-Lay North America Inc. All Natural Food Litigation, Case No. 1:12-md-02413, in the U.S. District Court for the Eastern District of New York.