Cargill to Settle Claims That “Natural” Ads for Truvia® Sweetener Are Misleading

While continuing to deny that its labeling and marketing for Truvia®
sweetener products misled consumers, Cargill has apparently agreed to settle
a putative nationwide class action alleging consumer fraud and breach of
warranty. Martin v. Cargill, Inc., No. 13-2563 (D. Minn., preliminary
agreement filed September 19, 2013). The plaintiffs claimed that the products
are not “natural” because they contain “highly processed” ingredients or
those derived from genetically modified organisms. Under the agreement,
the company would create a $5 million fund for cash refunds and vouchers
on selected Truvia® products. The company has also agreed to modify
product labels that will refer consumers to its website where it will explain
in some detail how the erythritol in Truvia® is produced. Cargill has agreed
not to oppose attorney’s fees and expenses of $1.59 million. Any residual
funds remaining in the settlement fund would be distributed to the National
Consumer Law Center and Consumer Federation of America.

Issue 498