Sweet Rewards For Consumers As Cargill Inc. Settles Lawsuit Over Marketing Of Truvia Natural Sweetener Products
29 November 2014 - 1:13AM
Business Wire
Consumers will be better equipped to decide for themselves
whether Truvia Natural Sweetener products are as natural as
claimed, owing to a federal district court decision announced late
Wednesday, Nov. 26. The court approved a settlement in which
Cargill Inc., maker of Truvia, agreed to make substantive marketing
changes and better inform consumers about the ingredients and
processes used in the manufacturing of Truvia.
The court order resolved the dispute between Cargill Inc. and a
small group of consumers who had filed suit against the company
over alleged deceptive marketing tactics used to sell Truvia
Natural Sweetener consumer products. “Plaintiffs obtained
significant changes by filing this lawsuit to challenge Truvia’s
label,” says Melissa Wolchansky, attorney with Halunen &
Associates in Minneapolis and a lead plaintiff’s attorney in the
lawsuit. Two other law firms also represented the plaintiffs in the
lawsuit, before U.S. District Judge Leslie E. Kobayashi in
Hawaii.
The settlement put an end to a 19-month legal clash that also
resulted in Cargill agreeing to set up a $6.1 million fund to
compensate consumers who previously purchased Truvia Natural
Sweetener and pay court costs and attorneys’ fees, and incentive
fees to individual plaintiffs. Cargill admits to no wrongdoing in
agreeing to the settlement, which ends the class action lawsuit
filed against the company.
The settlement cures the allegations made by plaintiffs, says
Wolchansky.
“For example, plaintiffs argued that Cargill’s marketing of
Truvia as a ‘natural sweetener’ was misleading, because the product
contains processed food ingredients that a reasonable consumer
would not consider ‘natural’,” says Wolchansky. “The plaintiffs
demanded that Cargill change its marketing to be more transparent
with consumers about what was in Truvia and how it was
manufactured. And that is exactly what Cargill agreed to do to
settle the case.”
Cargill can continue to market Truvia Natural Sweetener, but
must make substantive labeling changes and provide more product
information to consumers. Specifically, Cargill agreed to:
- Put a notice on its label directing
consumers to the Truvia.com website for clarification about what
ingredients the product contains and how it is manufactured
- Clarify its “Nature’s Calorie-Free
Sweetener” and “Truvia Natural Sweetener provides the same
sweetness as two teaspoons of sugar” statements
- Add language to product labels
directing consumers to a new “frequently asked questions (FAQ)”
section on the Truvia.com website, where they can learn about all
ingredients present in Truvia such as erythritol, a sugar alcohol
derived from corn and other agricultural produce
- Remove the phrase “similar to making
tea” on all Truvia consumer products packaging (the lawsuit
disputed whether the fermentation process used to obtain stevia
extract was really similar to distilling tea in a teapot)
“The settlement gives consumers more concrete information to use
in deciding whether they want to purchase and consume Truvia,” says
Clayton Halunen, also of the Halunen & Associates law firm.
“Let this case serve as an example to other people who believe
they were harmed by the actions of a large company,” says Halunen.
“As a firm, we are committed to standing with consumers who seek to
make positive changes in the consumer foods marketplace. It only
took a few people willing to stand up to Cargill to force the
company to be more transparent with its marketing of a nationally
distributed consumer food product, Truvia Natural Sweetener.”
About Halunen & Associates
With offices in Minneapolis and Chicago, the law firm of Halunen
& Associates offers expertise in litigating consumer class
actions and has a track record of success in challenging dishonest
marketing, corporate fraud, and illegal business practices. Halunen
also offers experienced legal representation to employees and
whistleblowers under the False Claims Act and other statutes. For
more information on Halunen & Associates, visit the firm’s
website at www.halunenlaw.com.
Halunen & AssociatesClayton Halunen,
612-221-8920halunen@halunenlaw.comorBig Thunder PRDoug Hovelson,
612-998-0789 (cell) - 612-722-5501doughovelson@msn.com