Kashi Co. has agreed to pay $5 million to consumers and to change the labeling on some food products to resolve a class action that accused the cereal company of falsely advertising its products as “all natural” or “nothing artificial” when they contained synthetic and artificial ingredients, according to a proposed settlement filed in California federal court.
The Kellogg subsidiary does not admit to any liability in the settlement, which was filed in documents with the U.S. District Court for the Southern District of California on May 2.
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