Kashi settles class-action suit over 'All Natural'

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By Candace Choi
May. 8, 2014 9:44 AM EDT


Kashi settles class-action suit over 'All Natural'
Boxes of Kellogg Co.'s Kashi Tasty Little Crackers (TLC) sit on display at a Walgreen's store in New York, U.S., on Wednesday, Feb. 17, 2010. Kellogg Co.'s Kashi, the health-foods brand that makes Heart to Heart cereal, will increase sales by about two-thirds within five years, to more than $1 billion, said David DeSouza, the unit's general manager. Photographer: JB Reed/Bloomberg via Getty Images
A box of Kellogg Co.'s Kashi Tasty Little Crackers (TLC) sits on display at a Walgreen's store in New York, U.S., on Wednesday, Feb. 17, 2010. Kellogg Co.'s Kashi, the health-foods brand that makes Heart to Heart cereal, will increase sales by about two-thirds within five years, to more than $1 billion, said David DeSouza, the unit's general manager. Photographer: JB Reed/Bloomberg via Getty Images
UNITED STATES - FEBRUARY 05: Kellogg Co. Kashi brand cereal sits on display in a supermarket in New York, U.S., on Thursday, Feb. 5, 2009. Kellogg's doesn't rule out making its own peanut butter after a recall that will cost the company about $70 million, Chief Executive Officer David Mackay said. Kellogg, the world's largest cereal maker, is studying its safety and testing procedures after distributing snacks with tainted ingredients from Peanut Corp. of America, Mackay said. (Photo by Daniel Acker/Bloomberg via Getty Images)
HE/GRAINS Washington Post Studio DATE: December 7, 2007 PHOTO: Julia Ewan/TWP For grains story - Kashi TLC Oatmeal Dark Chocolate. (Photo by Julia Ewan/The Washington Post/Getty Images)
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NEW YORK (AP) - Kellogg says it will no longer use the "All Natural" or "Nothing Artificial" labels on certain Kashi products as part of an agreement to settle a class-action lawsuit.

The company, based in Battle Creek, Michigan, says it will also pay $5 million to settle the suit.

In an emailed statement, Kellogg Co. says it stands by its advertising and labeling practices but that it would change its formulas or labels nationally by the end of the year.

The suit had accused Kashi of misleading people by stamping the phrases "All Natural" or "Nothing Artificial" on products that contained a variety of synthetic and artificial ingredients.

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