Cape Cod Chips Hit With Lawsuit Over “Preservative-Free” Claims

Case Overview: A class action lawsuit claims Campbell’s Company (Cape Cod chips) falsely advertises its potato chips as containing "No Artificial Flavors or Preservatives," when they allegedly contain synthetic citric acid.

Consumers Affected: New York consumers who purchased Cape Cod chips believing they were preservative-free.

Court: U.S. District Court for the Southern District of New York

Cape Cod potato chips, known for their thin crunchy texture and seemingly high quality production, are facing legal heat for allegedly deceiving consumers. 

A new class action lawsuit claims the chips are falsely advertised as containing “No Artificial Flavors or Preservatives” or “No Artificial Colors, Flavors or Preservatives,” even though they contain citric acid, a chemical the FDA classifies as a preservative.

The lawsuit targets Campbell’s Company, which owns the Cape Cod brand, for marketing its chips as preservative-free to attract health-conscious buyers, despite using an ingredient that federal regulators and food scientists widely recognize as synthetic and preservative in nature.

Buyer Says Labels Don’t Match What’s Inside

Jacqueline Dushaj of Middletown, New York, filed the lawsuit after she says she bought multiple flavors of Cape Cod chips—including Sea Salt & Vinegar and Sweet Mesquite Barbecue—at Walmart and ShopRite stores over the past three years. Each time, she says, she relied on the chip bags’ bold preservative-free claims when deciding to make a purchase.

But after discovering that the chips contain citric acid, Dushaj says she never would’ve bought them, or at the very least wouldn’t have paid as much. The lawsuit argues that the branding was deliberately misleading and that consumers like Dushaj paid a premium for a product marketed as healthier than it actually is.

Why Citric Acid Is at the Center of the Dispute

At the center of the case is the use of manufactured citric acid, which the FDA identifies as a preservative for its antimicrobial and antioxidant properties. While citric acid does occur naturally in citrus fruits, the version used in packaged foods like Cape Cod chips is chemically synthesized—usually by fermenting sugar with a type of black mold called Aspergillus niger. The lawsuit points out that consumers likely don’t realize the ingredient listed on the label isn’t lemon juice but a lab-made additive.

Regulators and researchers agree that citric acid’s main role is to keep food from spoiling, maintaining flavor, texture, and shelf life. That functional use, the lawsuit argues, directly contradicts the brand’s clean-label claims.

Food Industry Brands Face Similar Labeling Allegations

Cape Cod isn’t the only brand under scrutiny for citric acid and misleading “natural” claims. PepsiCo’s Smartfood popcorn, Kraft Heinz’s Capri Sun, JM Smucker’s fruit spreads, and Coca-Cola’s Minute Maid juice have all recently been hit with lawsuits for promoting products as free of preservatives or artificial ingredients while including citric acid on the ingredients list. 

Even wellness brands like Oca energy drinks and fruit giant Dole are facing similar allegations.

Dushaj is bringing the lawsuit on behalf of all New York consumers who purchased Cape Cod chips in the last three years believing they were preservative-free. She’s accusing the company of violating New York business laws and is asking for damages, refunds, and corrective advertising—and wants Campbell’s to stop marketing the chips with misleading health claims.

Case Details

• Lawsuit: Dushaj v. The Campbell’s Company
• Case Number: 7:25-cv-05572 
• Court: U.S. District Court for the Southern District of New York

Plaintiffs' Attorneys

• Frederick J. Klorczyk III (Kamber Law, LLC)    

Do you buy Cape Cod potato chips? Tell us what you think about these allegations in the comments below.