ESG Enforcement Tracker

Key facts:

Rust-Oleum Corporation produced Krud Kutter, a multi-surface cleaning spray. The product was marketed with the phrases “Non-Toxic” and “Earth Friendly” prominently displayed on the front label. The reverse side included irritant warnings and clarified that “Earth Friendly” meant the product contained “no inorganic phosphates, hazardous solvents or environmentally harmful surfactants”.

A civil claim was lodged in California on behalf of a purchasing class, relying on Californian consumer protection legislation, false advertising provisions, and breach of warranty, on the basis that the products can actually cause harm to humans, animals and the environment.

Following public notification of the proposed settlement, over 23,000 claims were received and accepted. The court refused to strike out the claim on the argument that the advertising constituted mere puffery or that the reverse label qualified the front-facing claims. It held that the true meaning of the terms was a matter for the jury.

After five years of litigation, the parties agreed to a settlement approved by the court on 2 October 2025. The settlement provided for payments of between US$1 and US$2 per unit out of a pre-defined fund, as well as small payments to the class representative and the legal costs (attorneys’ fees and litigation expenses). Without any admissions of wrongdoing, Rust-Oleum agreed to remove the ‘Non-Toxic’ representation and to qualify the statement ‘Earth Friendly’ with clarifying language.

Any of the US$1.5 million fund not claimed will be distributed to Earthjustice, a nonprofit environmental law organisation dedicated to protecting public health and the environment, and Mamavation, a consumer advocacy group focused on environmental health and toxic-free living, ensuring the funds benefit consumers and the public.