Pepsi Agrees to Get the Lead Out of Labels

Settling a lawsuit by the city of Los Angeles and the state, PepsiCo Inc. has agreed to eliminate labels containing lead on bottled soft drinks imported from Mexico and will pay a $1-million civil penalty, officials announced Friday.

The lawsuit alleged that the soft-drink maker violated Proposition 65 by failing to warn consumers that the labels contained lead.

“This is a landmark result which will protect the health of our children and make our communities safer,” City Atty. Rocky Delgadillo said at a City Hall news conference. “Pepsi is here with us today doing the responsible thing.”

Atty. Gen. Bill Lockyer said Pepsi bottled in Mexico is not supposed to be sold in Southern California, but some businesses bring it here because the soda has a different taste that some Latinos prefer.

The labels on some bottles contain up to 45% lead, he said.

He said the lead can be transferred to hands and then be ingested if a person touches his or her mouth.

Additionally, lead could contaminate the inside of bottles during washing for recycling.

“This is a settlement that breaks new ground in protecting Californians from hazardous substances in our environment,” Lockyer said.

Under the settlement, filed in court Friday, PepsiCo will begin phasing out labels containing lead and will remove existing soda bottled in Mexico from shelves in California.

In addition to the $1-million civil penalty, the company could face an additional $4.25 million in penalties if it fails to phase out 95% of the labels with lead within 10 years.

PepsiCo also will pay $500,000 to a fund for monitoring whether Mexican Pepsi bottles are coming into California and to other programs on lead abatement in food.

The firm also will pay $750,000 to reimburse investigative and attorney costs, Delgadillo said.

Lead has long been on a state list of chemicals that can cause reproductive harm and birth defects, developmental problems in children and cancer.

However, PepsiCo officials said the settlement does not involve any product made in the U.S. and disputed that anyone was put in danger.

“The issue is about labeling, not safety,” the company said in a statement. “The products involved are absolutely safe to drink and comply with all U.S. and Mexican safety standards. California has not asked that any product be recalled.”

PepsiCo said the use of the lead inks is a long-standing industry practice, and that Coca-Cola has also been given a notice to comply with Proposition 65.

“While analysis by respected laboratories supports our belief that we have complied with Proposition 65, and that no extra labeling is required, we have settled this to avoid years of costly and distracting litigation,” the company said in a statement.

Delgadillo said his office is examining whether the issue also involves other soda makers.

The CocaCola Co. issued a statement saying it “is already -- and voluntarily -- doing what this settlement requires Pepsi to do in the future, at a cost to the CocaCola system in excess of $25 million.”

The firm said all of its bottles made in Mexico are lead-free.