Tyson Foods has reached an agreement to settle a US consumer lawsuit arising from the meat giant’s marketing claim that its chickens were “raised without antibiotics”.
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The consumer lawsuits originated in January 2008, when Tyson rivals Perdue Farms and Sanderson Farms alleged that Tyson’s “raised without antibiotics” labelling constituted false advertising because the company used ionophores, a poultry feed additive.
In an settlement filed earlier this week, Tyson said that it would provide individual consumers with cash compensation of US$5, $10 or $50 coupons. The cost of the agreement, including administrative costs, will total $5m.
A spokesperson for Tyson told just-food that the group was “pleased” to reach the settlement, which is awaiting court approval.
“Our “Raised Without Antibiotics” chicken initiative, which we started in 2007, was suspended in 2008 due to labelling challenges,” the spokesperson said.
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By GlobalData“While we believe our company acted appropriately, we also believe it makes sense for us to resolve this legal matter and move on.”
