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PepsiCo Pays $9M, Removes All-Natural Claim In Naked Juice Settlement

Posted On: 7/23/2013

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TAGS: PepsiCo, Naked Juice, all natural labeling practice, Naked Juice class-action suit, false advertising

MONROVIA, CA -- PepsiCo's Naked Juice Co. will strip the words "all natural" from its labels after a class-action suit determined the claim was misleading and false.

The juice and smoothie company agreed to pay $9 million to settle the suit by a group of consumers who charged that its drinks could not be called natural and GMO-free.

The suit, filed in the U.S. District Court for the Central District of California, alleged that Naked Juice could not call its products "all natural" because they contained Fibersol-2, a soluble corn fiber, fructooligosaccharides (FOS), an alternative sweetener, and genetically modified soy.

Naked Juice blamed the labeling confusion on the government for not providing sufficient regulatory guidance as to what can be called "natural."