Case Name:
Consumer Advocacy Group v. Walmart, Inc. et al.
Court Name:
Alameda County Superior Court
Plaintiff:
Consumer Advocacy Group, Inc.
Defendant:
Atlapac Trading Company, Inc.
Injunctive Relief:
3.1 After the Effective Date, Defendant shall not sell in California, offer for sale in
California, or ship for sale in California any of the Covered Products unless the level of Cadmium
does not exceed 34 parts per billion (“reformulation level”), unless Proposition 65 compliant
warnings are used as set forth in the following paragraphs.
3.2 For any Covered Products that exceeds its reformulation level of Listed Chemicals
that are manufactured for distribution and/or sale into California after the Effective Date,
Defendant must provide a Proposition 65 compliant warning for the Covered Products as permitted by Proposition 65 and its implementing regulations or as set forth below. The language of the
warnings and method for providing any warnings for the Covered Products shall be compliant with
Title 27, California Code of Regulations, § 25600, et seq and with Title 27, California Code of
Regulations, § 25607.2, et seq. Any warning provided pursuant to this section shall be affixed to
the packaging of, or directly on, the Covered Products, and be prominently placed with such
conspicuousness as compared with other words, statements, designs, or devices as to render it
likely to be read and understood by an ordinary individual under customary conditions before
purchase or use. The warning must be set off from other surrounding information, enclosed in a
box. Where the packaging of the Covered Products or a sign referring to the Covered Products
includes consumer information as defined by California Code of Regulations title 27 §25600.1(c)
in a language other than English, the warning must also be provided in that language in addition
to English. Should Defendant sell or distribute any Covered Products through the internet, the
warning will be posted in the manner provided for with respect to internet sales, as provided for in
27 CCR sections 25601 and 25602, as they may be subsequently amended, for sales to consumers
in California. The Parties agree that the following warning language shall constitute compliance
with Proposition 65 with respect to the alleged Cadmium in the Covered Products placed into the
steam of commerce by Defendant after the Effective Date: For Covered Products that contain Cadmium:
WARNING: Consuming this product can expose you to Cadmium, a chemical
known to the State of California to cause birth defects or other reproductive harm.
For more information go to www.P65Warnings.ca.gov/food
3.3 For any Covered Products still existing in the Defendant’ physical custody as of the
Effective Date, Defendant shall place a Proposition 65 compliant warning on them, unless the
Covered Products do not exceed the reformulation level. Any warning provided pursuant to this
section shall comply with the warning requirements under Section 3.2 above. 3.4 Changes in the law and regulations applicable to Proposition 65, including changes
resulting from federal and/or state court rulings, occurring after this date may be incorporated into
the terms of this Consent Judgment, pursuant to the modification provisions set forth in Section 7.
Payment in Lieu of Penalty:
$ 17,100.00 (Defendant shall make a separate
payment, in the amount of seventeen thousand one hundred dollars($17,100.00) as an additional
settlement payment to “Consumer Advocacy Group, Inc.” pursuant to Health & Safety Code §
25249.7(b) and California Code of Regulations, Title 11 § 3203(d). Defendant will issue a separate
check to CAG for the Additional Settlement Payment. CAG will use this payment as follows,
eighty percent (80%) for fees of investigation, purchasing and testing for Proposition 65 listed
chemicals in various products, and for expert fees for evaluating exposures through various mediums, including but not limited to consumer product, occupational, and environmental
exposures to Proposition 65 listed chemicals, and the cost of hiring consulting and retaining experts
who assist with the extensive scientific analysis necessary for those files in litigation and to offset
the costs of future litigation enforcing Proposition 65 but excluding attorney fees; twenty percent
(20%) for administrative costs incurred during investigation and litigation to reduce the public’s
exposure to Proposition 65 listed chemicals by notifying those persons and/or entities believed to
be responsible for such exposures and attempting to persuade those persons and/or entities to
reformulate their products or the source of exposure to completely eliminate or lower the level of
Proposition 65 listed chemicals including but not limited to costs of documentation and tracking
of products investigated, storage of products, website enhancement and maintenance, computer
and software maintenance, investigative equipment, CAG’s member’s time for work done on
investigations, office supplies, mailing supplies and postage. Within 30 days of a request from the
Attorney General, CAG shall provide to the Attorney General copies of documentation
demonstrating how the above funds have been spent. CAG shall be solely responsible for ensuring
the proper expenditure of such additional settlement payment. )
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