PepsiCo’s Naked Juice agrees to end “all natural” claim

Companies beware: No matter how much you shrink the font, some busy-body consumers still manage to read your fine print on labels. Naked Juice Co., a subsidiary of PepsiCo, had to learn this the hard, pecunary way. In July 2013 Naked Juice agreed to a USD 9 million class action settlement over claims it had falsely advertised some of its juices and smoothies as “all natural” and free of genetically modified ingredients.

Under the terms of the Naked Juice class action settlement, plaintiffs will be able to receive a full refund of the money they paid at retail for eligible products, up to a maximum of USD 75 (EUR 57) with proof of purchase. Consumers without proof of purchase are eligible to receive between USD 5 and USD 45 in cash, it was reported.

While Naked Juice has denied the allegations, stressing that the class action settlement was not evidence of wrongdoing on its part, the company nevertheless agreed to redesign its labels and remove the moniker “all natural”.

The first complaints were filed against Naked Juice in 2011. The plaintiffs alleged that Naked Juice’s labels are likely to deceive reasonable customers because the products contain synthetic ingredients such as ascorbic acid, beta carotene, D-calcium panthothenate, among other ingredients. The plaintiffs also claimed that Naked Juice did not adequately disclose that its juices and smoothies were made from concentrate.