Facts

The People of the State of California brought an action against McDonald's, Wendy's, Burger King, Kentucky Fried Chicken, Frito-Lay, Kettle Foods, Lance, Procter & Gamble, and Heinz for sale of potato chips and french fries containing high levels of acrylamide, a known carcinogen.

PLAINTIFFS' CONTENTIONS:
Plaintiffs claimed unlawful business practices under the Unfair Competition Law. They also alleged violations of the Safe Drinking Water and Toxic Enforcement Act of 1986 (aka Proposition 65), which provides that businesses must supply a reasonable and clear warning prior to distributing products that expose the public to chemicals like acrylamide.

DEFENDANTS' CONTENTIONS:
The defendants denied all claims.

Damages

Plaintiffs requested civil penalties as well as injunctive relief.

Result

Defendants Kentucky Fried Chicken, McDonald's, Wendy's, and Burger King consented to providing warnings for acrylamide in their restaurants. KFC paid plaintiffs $341,000, Wendy's paid $342,000, and Burger King paid $1,250,000 for civil penalties and costs. Burger King paid an additional $700,000 to the private plaintiff. McDonald's compensated plaintiffs $1,641,000 for civil penalties and costs, along with $700,000 to the private plaintiff. Procter & Gamble consented to reduce the amount of acrylamide so that warnings would not be needed and also compensated plaintiffs with $750,000 for civil penalties and costs, including a possible increase of $1 million in the event that reduction targets are not attained. Frito-Lay, Kettle Foods, Heinz, and Lance consented to reduce acrylamide levels, and also paid civil penalties and costs before the start of trial. Frito-Lay agreed to pay $1.5 million, and an additional $2 million in the event that reduction targets are not attained, to be reduced by $550,000 if reduction targets are attained within half the time required. Kettle Foods agreed to give $350,000, Lance agreed to give $95,000, and Heinz agreed to give $600,000. The total awarded amount equaled $6,869,000.