Nestle is facing a federal class-action lawsuit in Los Angeles alleging it sold products labeled as having "No GMO Ingredients" with genetically modified organisms.
CBS News reports Nestle is also accused of designing a seal on its product packaging with the intention to trick consumers into thinking that its products were certified by the non-profit Non-GMO Project, a leading authority on the subject.
The suit also alleges that Nestle sold dairy from cows fed GMO grain, a violation of the non-profit's standards for its Product Verification Program.
The USDA recently unveiled a 106-page proposed regulation that mandates the disclosures of ingredients that are derived from GMO crops. Many products, however, such as meat, poultry and eggs, are exempt from the proposed rule.
Nestle, for its part, described the allegations as "baseless" and denied that it had broken the law.
