Mondelez International (MDLZ.O) has agreed to settle a class action lawsuit for $10 million, resolving accusations that it misleadingly labeled its Wheat Thins crackers as “100% Whole Grain,” despite containing corn starch, a refined grain. The settlement, which requires court approval, was filed late Tuesday in the U.S. District Court for the Northern District of California.
The lawsuit, originally filed in October 2022, alleged that consumers were misled by the labeling, which implied that Wheat Thins were made entirely of whole grains, even though they contained corn starch, a processed ingredient. Whole grains are generally considered healthier than refined grains, and the plaintiffs argued that, had they known about the inclusion of corn starch, they either would not have purchased the product or would have paid a lower price for it.
Under the terms of the settlement, eligible purchasers will receive refunds ranging from $4.50 to $20.00, depending on whether they retained receipts and the quantity of Wheat Thins they bought. The settlement covers U.S. consumers who purchased Wheat Thins with the “100% Whole Grain” label between October 13, 2018, and the settlement date. The affected product lines include Original, Reduced Fat, Sundried Tomato & Basil, Big, Ranch, Hint of Salt, Cracked Pepper & Olive Oil, and Spicy Sweet Chili Wheat Thins.
As part of the settlement, Mondelez has also agreed to modify its packaging, ensuring that the “100% Whole Grain” claim will no longer appear without further clarification, addressing concerns over deceptive advertising practices.
Remaining funds from the settlement, after disbursement of refunds, will be donated to UCLA’s Resnick Center for Food Law and Policy and to Feeding America, a hunger relief nonprofit. The plaintiffs’ attorneys may seek up to $3.33 million in legal fees from the settlement fund.
Mondelez, based in Chicago, denied any wrongdoing but agreed to settle the case to avoid prolonged litigation. The company did not immediately comment on the settlement.
The case is titled Wallenstein v. Mondelez International Inc., U.S. District Court, Northern District of California, Case No. 22-06033.
Read more:
