Lawsuit Over Corn-Syrup Ads Is Settled

By Jesse Newman 

A billion-dollar battle over sweeteners came to a close on Friday as big sugar companies and corn refiners, including Archer Daniels Midland Co., said they had settled long-running litigation over advertisements about high-fructose corn syrup.

Terms of the deal--reached during the middle of a trial--were confidential, the companies said in a joint statement.

Leading sugar refiners, including Domino Sugar-owner ASR Group, in 2011 sued the Corn Refiners Association for advertisements using the term "corn sugar" to describe high-fructose corn syrup, a widely used sweetener found in snack foods, condiments, fruit drinks and other products.

The sugar companies argued that high-fructose corn syrup and sugar are distinct products. They objected to the corn-industry advertising campaign's description of high-fructose corn syrup as "natural" and its claim that the ingredient was "nutritionally the same as table sugar."

The sugar companies sought $1.5 billion in damages.

The case in a federal-district court in Los Angeles came amid growing anxiety among consumers over sweeteners. That included high-fructose corn syrup, which had become one of the most oft-seen ingredients on grocery labels. Critics of the sweetener argue it has played a starring role in the obesity problem in the U.S.

The two sides said in their joint statement that they would "continue their commitments to practices that encourage safe and healthful use of their products, including moderation in the consumption of table sugar, high fructose corn syrup and other sweeteners."

A year after the initial lawsuit, corn-refining giants including ADM and Cargill Inc. countersued, arguing that sugar companies deceived consumers by claiming they would be healthier if they consumed foods and beverages that contained processed sugar rather than high fructose corn syrup.

In 2012, the U.S. Food and Drug Administration rejected an appeal by America's corn refiners to change the sweetener's name on food packages from high-fructose corn syrup to corn sugar. The sugar industry said the rival sector's move was spurred by waning sales of the controversial ingredient.

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(END) Dow Jones Newswires

November 20, 2015 18:53 ET (23:53 GMT)

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