McDonald’s to Pay $8.5M in Trans Fat Suit

SAN RAFAEL, Calif. — McDonald’s Corp. will pay $8.5 million to settle a lawsuit accusing the fast-food giant of failing to inform consumers of delays in a plan to reduce fat in the cooking oil used for its popular french fries and other foods.

BanTransFats.com, a nonprofit advocacy group, sued McDonald’s in California state court in 2003, alleging the company did not effectively disclose to the public that it had not switched to a healthier cooking oil.

In September 2002, McDonald’s announced it would lower trans fat in its cooking oils and said the switch would be completed in five months. In February 2003, McDonald’s announced a delay. The lawsuit accused the Oak Brook, Ill.-based company of failing to adequately inform consumers of that delay.

The agreement announced Wednesday requires McDonald’s to pay $7 million to the American Heart Association to use the proceeds to educate the public about trans fats in foods. Heart-clogging trans fat is made when manufacturers add hydrogen to vegetable oil – a process called hydrogenation.

Wednesday’s settlement also requires McDonald’s to spend $1.5 million publicizing that it has not followed through on its 2002 pledge.

Additionally, the company will pay $7,500 to BanTransFats.com and $7,500 to Katherine Fettke, who had filed a separate complaint against McDonald’s and has also agreed to settle.

McDonald’s has reduced the amount of trans fat in its Chicken McNuggets, Crispy Chicken and McChicken sandwiches, said spokesman Walt Riker.

He said the company is working to reduce trans fat in its other fried foods.

"We’re continuing to test. We want to make sure we get it right for our customers," he said.

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