Cereal giant Kellogg agrees to allocate $20m fund to settle a class-action lawsuit alleging it falsely advertises high-sugar cereals as ‘healthy’.
The lawsuit was originally filed on August 16 by Stephen Hadley. The plaintiff alleged that words including ‘healthy’, ‘nutritious’, ‘wholesome’, and ‘lightly sweetened’ on selected Kellogg’s cereals implied that the products were low in sugar when it is actually composed of 18 to 40 percent added sugar.
Kellogg argued that it has never advertised its breakfast products as being ‘low sugar’ or ‘reduced sugar’. It also pointed out that the product’s sugar content is clearly listed on the Nutrition Facts Panel, and on average has significantly less than a third added sugar content, as per the US’ Food and Drug Administration’s Daily Recommended value of 50g.
After more than three years, both parties have agreed on a settlement of $20m which is yet to be approved by the court. Along with this, the cereal brand will also receive a two to three years suspension on using phrases such as ‘Lightly Sweetened’ or ‘No high fructose or corn syrup’ on its products as well as any health benefit claims.