Financial – Natural Cornstarch False Advertising Class Action Lawsuit

Corn Starch Settlement

  • Provides information regarding the Karlin Foods Corporation
  • Eligible class members will want to file a claim as they may receive $1 per unit purchased up to $2 without a proof of purchase or up to $8 with proof of purchase during the class period

In a quest to live healthy lives, many Americans are looking to purchase natural foods which are essentially not in any way genetically modified, or GMO-free foods. Karlin Foods in conjunction with Walmart began to sell Cornstarch that was labelled 100% natural’ since August 2010. However, this was proven to be false was termed as artificial, synthetic and genetically modified. As such a lawsuit, Teufel vs. Karlin Foods, came to be.

More information about the Corn Starch Settlement?

They were also directed by the court to pay no more than $825,000 with $515,000 going to the class members and the rest to administrative expenses. This means that for each proven purchase would be refunded up to $8 with those without proof receiving up to $2. Further, the plaintiff was awarded a $5000 service award and a further $160,000 in expenses and legal fees.

So what constitutes as natural foods? This is food that contains about 70% organic ingredients, was not subjected to pesticides or an animal that was fed organic feed and not injected with any hormones or antibiotics. Foods that pass this test can be found labelled as organic’, GMO free’ or 100% natural’. As a result, the law permits any complainant to come forward should the above requirements prove false or incorrect.

This lawsuit is important because it is said that the organic’ and natural’ foods industry generated over $40 million in sales in 2013 alone. This means that more Americans are becoming health conscious and demand to eat foods that will not affect their health. For a company to falsely advertise its product means that not only are they defrauding the public but also mocking the positive gains made in wanting to live healthy lifestyles.