A federal judge said Kraft Heinz KHC.O must face a proposed nationwide class action alleging it defrauded consumers by claiming that Kraft macaroni and cheese, one of its most popular products, contained no artificial preservatives.
In a decision issued Wednesday, U.S. District Judge Mary Rowland said the Illinois, California and New York consumers who led the lawsuit plausibly alleged that Kraft Mac & Cheese contained a synthetic form of citric acid that was different from the natural variety, and also contained sodium phosphate.
The Chicago-based judge said the plaintiffs specifically claimed that the ingredients act as preservatives, making Kraft Heinz’s claim of “no artificial flavors, preservatives or dyes” on the labels false, and cited academic studies and FDA guidance to support their case.
Get breaking national news
For news affecting Canada and around the world, sign up to get breaking news alerts delivered to you right as they happen.
“These allegations are sufficient to resist a motion to dismiss,” she wrote.
Rowland agreed with Kraft Heinz that the plaintiffs lack standing to seek new trademarks because they are now aware of its alleged deceptive practices and face no risk of future harm.
In seeking the dismissal, Kraft Heinz said there were no factual allegations that it used artificial preservatives in its popular mac & cheese, or that reasonable consumers would view its ingredients as artificial.
Kraft Heinz confirmed Thursday that its Mac & Cheese product contains no artificial flavors, preservatives or dyes.
“We fully stand behind our product and take pride in its quality,” the company said. “We strongly believe this lawsuit has no merit and look forward to our day in court.”
Lawyers for the plaintiffs did not immediately respond to requests for comment.
The plaintiffs are seeking damages for fraud, unjust enrichment and violations of state consumer protection laws.
Their lawsuit is one of many challenging the accuracy or precision of food labels.
In July 2023, a federal judge in Miami dismissed a lawsuit accusing Kraft Heinz of underestimating the time it takes to prepare microwaveable Velveeta macaroni and cheese.
Kraft Heinz is headquartered in Chicago and Pittsburgh. Berkshire Hathaway owns 26.9% of its shares.
The case is Hayes et al v. Kraft Heinz Co., U.S. District Court, Northern District of Illinois, No. 23-16596.
—(Reporting by Jonathan Stempel in New York; Preparing by Muhammad for the Arabic Bulletin) Editing by Rod Nickel and Muralikumar Anantharaman
