60 Day Notice 2020-03030

2.1 Lead and Acrylamide Reduction Target Level and Compliance Date. Beginning on the Effective Date, Defendant shall reduce the level of lead in the Products shipped for sale in California to .022 parts per million, and the level of acrylamide in the Products to 20 parts per billion (collectively the “Target Levels”), or be subject to the provisions of Paragraphs 2.3 and 2.4. 2.2 “Shipped for sale in California” means the Products that Defendant either directly ships into California for sale in California or that it sells to a distributor or retailer who Defendant knows will sell the Products to consumers in California. Where a retailer or distributor sells products both in California and other states, Defendant shall take commercially reasonable steps to ensure that, after the Target Levels have been reached, the only Products that are sold in California are either (i) Products for which Defendant has complied with Paragraph 2.1, or (ii) Products for which Defendant has complied with Paragraphs 2.3 and 2.4. 2.3 Clear and Reasonable Warnings If Cereales does not achieve the Target Levels by the Effective Date, Cereales agrees to only manufacture for sale, purchase for sale, import for sale, or distribute for sale in or into California (in person or online) the Products that are sold with a warning as provided for in this paragraph and paragraph 2.4. 2.4 General Warning Requirements Cereales agrees that each warning shall 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. Each warning shall be provided in a manner such that the consumer or user understands to which specific Product the warning applies, so as to minimize the risk of consumer confusion. For purposes of this Settlement Agreement, a clear and reasonable warning for the Products shall consist of a warning affixed to the packaging, label. tag, or directly to each of the Products sold or distributed in California by Cereales that contain the following statements: 1) WARNING: Consuming this product can expose you to chemicals including Lead and Acrylamide which are known to the State of California to cause cancer, birth defects or other reproductive harm. For more information go to www.P65Wamings.ca.gov/food. 2) WARNING: Cancer and Reproductive Harm-www.P65Warnings.ca.gov/food. The warning shall be offset in a box with black outline. The same warning shall be posted on any websites where the Product is sold in California. (i) Changes in Warning Regulations or Statutes In the event that the Office of Environmental Health Hazard Assessment or another authorized agency promulgates one or more regulations requiring or permitting warning text and/or methods of transmission different than those set forth above, or legislation is enacted by the California legislature, United States Congress or voters with such requirements or permission, Cereales shall be entitled to use, at its discretion, such other warning text and/or method of transmission without being deemed in breach of this Agreement. If regulations, legislation or judicial rulings are enacted or issued providing that warnings as to lead or acrylamide in these types of food products are no longer required, a lack of warning by Cereales will not thereafter be a breach of this Agreement. 2.5 Grace Period for Existing Inventory of Products The injunctive requirements of Section 2 shall not apply to Products that are already in the stream of commerce as of the Effective Date, which Products are expressly subject to the releases provided in Section 4.1