In the US, Kraft Heinz (NASDAQ:KHC) will face a proposed nationwide class action lawsuit over allegations that it misled consumers by claiming its Kraft Mac and Cheese contains no artificial preservatives.
Accuracy of food labelling
The lawsuit seeks damages for fraud, unjust enrichment and violations of state consumer protection laws.
It is part of a broader trend of legal challenges questioning the accuracy of food labelling.
In a separate case in 2023, Kraft Heinz successfully defended against a lawsuit over the preparation time of its Velveeta macaroni and cheese.
The decision, handed down by US District Judge Mary Rowland on Wednesday, allows the case to proceed after finding the plaintiffs’ claims sufficiently plausible to withstand dismissal.
The lawsuit, led by consumers from Illinois, California and New York, alleges that Kraft Heinz’s Mac and Cheese includes synthetic citric acid and sodium phosphates, which plaintiffs argue function as preservatives.
The company’s packaging prominently states 'No Artificial Flavors, Preservatives or Dyes'.
FDA guidance
The plaintiffs claim this labelling misleads consumers and cited academic studies and US Food and Drug Administration guidance to support their arguments.
In her ruling, Judge Rowland found that the allegations provided enough detail to continue the case. But she sided with Kraft Heinz in dismissing claims that the company should change its labelling, as the plaintiffs are now aware of the alleged deceptive practices and are unlikely to be misled again.
Kraft Heinz argued in its defence that the plaintiffs failed to provide evidence that its Mac & Cheese contains artificial preservatives or that reasonable consumers would interpret the ingredients as artificial. The company has yet to comment on the ruling.
Kraft Heinz, headquartered in Chicago and Pittsburgh, is one of the world’s largest food and beverage companies, with 26.9% of its stock owned by Berkshire Hathaway (NYSE:BRKa).