Seventh Generation Settles 'Natural' Claims For $4.5M

Law360, Boston (July 1, 2016, 6:10 PM EDT) -- Seventh Generation Inc. has agreed to pay $4.5 million to settle a class action in New York federal court that claimed it deceptively labeled its cleaning products as "natural" even though they contained synthetic preservatives.

In a statement Friday, the company said that it stands behind the use of the term "natural" on its labeling, but said the costs of fighting the suit were too burdensome to continue. The consumers who sued have stipulated that the company has to adhere to its own current labeling standards, a spokeswoman for the company said.

"In an industry where there are loose regulations and...

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