Mondelēz International has agreed to a $10m settlement with purchasers of its Wheat Thins snack brand, following a lawsuit that accused the company of falsely labelling the crackers as ‘100% Whole Grain’, despite their inclusion of corn starch, a refined grain.
The October 2022 complaint argued that whole grains are healthier than refined grains and that customers who bought Wheat Thins would not have purchased the crackers, or would have paid less, if they had known that the labels on Mondelēz’s products were misleading.
Reuters reported that a preliminary settlement for the nationwide class action lawsuit was filed yesterday in a federal court in San Francisco, US, and is subject to judicial approval.
The settlement applies to US purchasers of Original, Reduced Fat, Sundried Tomato & Basil, Big, Ranch, Hint of Salt, Cracked Pepper & Olive Oil, and Spicy Sweet Chili Wheat Thins featuring the ‘100% Whole Grain’ label, purchased since 13 October 2018.
Customers with valid claims could receive refunds between $4.50 and $20.00, based on whether they kept the receipts and the quantity of Wheat Thins boxes they bought.
The lawyers representing the purchasers may request up to $3.33m from the settlement fund for legal fees.
Any remaining funds will be donated to UCLA’s Resnick Center for Food Law and Policy and to Feeding America, a non-profit organisation focused on hunger relief.
Mondelēz denied any wrongdoing while agreeing to settle the case. It did not immediately respond to requests for comment, stated the media outlet.
The company has agreed not to use the whole-grain label on its Wheat Thins packaging unless it provides clarification of the claim.
