Barlean’s Agrees to $1.6 Million Coconut Oil False-Ad Settlement

Barlean’s Organic Oils LLC agreed to pay $1.6 million and change labeling to resolve allegations that it deceptively portrayed coconut oils as healthful, according to a filing urging a California federal judge to preliminarily approve the proposed class settlement.

Michael Testone, Collin Shanks, and Lamartine Pierre challenged marketing statements such as “Coconut Oil: A Smart Fat.” They alleged Barlean’s deceptively positions coconut oil products as a healthy alternative to butter and various cooking oils, when it’s actually less healthful because of a high saturated fat content.

The consumers won certification of New York and California classes last year.

The nationwide ...