Whole Foods, others named in suit filed by California AG over carcinogens

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The suit, California v. Avalon Natural Products, also names as a defendant Austin-based Whole Foods Market Inc., which manufactures the 365 brand sold in the company's stores. Beaumont Products Inc., maker of the Citrus Magic brand, and a Lakeport, Calif.-based company are also named.

The attorney general alleges the companies should have put warning labels on products containing high levels of 1,4-Dioxane, stating that they may cause cancer.

The lawsuit states: "Plaintiff alleges that each defendant has known since at least May 29, 2004 that the body washes and gels and liquid dish soaps contain 1,4-Dioxane and that persons using these products are exposed to 1,4-Dioxane." Per Proposition 65, fines for mislabeled products are as high as $2,500 per day for each violation.

In a statement, Whole Foods (Nasdaq: WFMI) spokesperson Libba Letton says the company "is cooperating with the California Attorney General's office to resolve these claims as quickly as possible. We have conducted our own investigation into the allegations that some of our products contain 1,4-Dioxane and do not believe that these products represent a health risk or are in excess of California's Proposition 65 Safe Harbor level for 1,4-Dioxane."

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