A federal judge has ordered a national chain to pay $20 million to settle a class action lawsuit that alleges the candy company misled consumers about the dangers of cbd, an anti-cancer drug.
Federal District Court Judge Ronald L. Czajkowski in New York issued the order on Tuesday in a lawsuit filed by consumer advocacy group Consumers Union.
The lawsuit, filed in U.S. District Court in Manhattan, alleges that 7-10, which makes candy in about 30 states and several other countries, violated federal food safety laws by selling caldron candies containing cbd.
It also accused the company of misleading consumers about potential side effects from cbd and selling it without an ingredient list.
In his ruling, Czabkowski wrote that “the defendants did not appear to make clear that cbd may cause serious harm, or that it is a toxic substance.”
The judge also said that 7.11, a competitor to 7-Eleven, has failed to show that it had a “reasonable opportunity” to warn consumers about cbd’s potential dangers.
7- Eleven, which does not sell cbd or sell its cbd-containing products in the United States, has said it has taken steps to minimize the risk posed by cbd to its customers.
“These defendants have failed to demonstrate that they did not reasonably anticipate that their products would be sold in the marketplace,” Czazinski wrote.
“The defendants also failed to mitigate the risks posed by the cbd products.”
The company will pay $2 million to the plaintiff in the class action and $4 million to consumer advocacy groups Consumers Union and Public Citizen.
It will also reimburse $2.9 million to consumers who purchased the caldrons and $1.5 million to plaintiffs who purchased caldrones.
In a statement, 7- 11 said that it “has taken steps over the past few months to prevent the sale of caldronic products from our U.K.-based plants, and as part of that we have implemented a complete inventory review program to identify and remove potentially dangerous cbd from our packaging.
Our commitment to consumer protection is clear.”
The plaintiffs were represented by attorneys with the Public Citizen law firm.
The case is Czawinski v. 7.10 Inc.