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Kashi Agrees To Pay $4M Settlement Over All-Natural Label

The money would largely go toward fully refunding Kashi customers.

Kellogg Co. could pay nearly $4 million to settle a Florida class-action lawsuit over "all-natural" claims on products under its Kashi brand.

The plaintiffs in the lawsuit argued that the Kashi products contained genetically modified ingredients that would not be considered all-natural by a reasonable consumer.

The settlement could range between $2 million and $3.99 million. The money would largely go toward fully refunding Kashi customers with proofs of purchase, while providing $27.50 to those without receipts.

The settlement also stipulates that Kashi labels will not include "all-natural" or "nothing artificial" claims unless its ingredients are approved by regulators.

Kellogg settled a similar case over Kashi labels in California last year for $5 million. Last week, a class-action lawsuit in California alleged that Campbell Soup's Prego pasta sauces should not be labeled "all-natural" due to its use of canola oil from GMO sources.

Meanwhile, Karlin Foods, which produces food for private-label brands, settled another false advertising lawsuit over cornstarch sold by Walmart.