Kashi settles class-action suit over 'All Natural'

Updated

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




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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