A trade group that represents some of America’s largest food companies has agreed to pay $9 million for violating Washington’s campaign finance laws, after the state Supreme Court upheld a sentence twice as high.
SEATTLE, AP — A trade group that represents some of America’s largest food companies has agreed to pay $9 million for violating Washington’s campaign finance laws, after the state Supreme Court upheld a sentence twice as high.
The Consumer Brands Association, which represents companies including PepsiCo and General Mills, said in January it intended to appeal the state’s decision to the U.S. Supreme Court.
But on Wednesday, Washington Attorney General Bob Ferguson, who sued the group in 2013, announced he was dropping his appeal and would instead settle the case for $9 million, including $3 million in donations to two organizations. charities that fight against hunger.
The remaining $6 million will go to the state transparency account, which supports the Public Disclosure Commission.
It is believed to be the biggest campaign finance penalty in the nation’s history, Ferguson said.
“Illegal black money has no place in elections in Washington,” he said in a press release. “My office will relentlessly ensure that special black money interests who intentionally violate our campaign finance laws are held accountable – even if it takes a decade.”
The case involved money that the Consumer Brands Association – then known as the Grocery Manufacturer’s Association – funneled into a state political campaign in 2013.
The group raised $14 million from its members for a joint campaign account. He then paid $11 million of that sum to help defeat a ballot initiative that would have required the labeling of genetically modified ingredients on food packaging.
The association failed to register as a political committee, did not disclose which companies contributed the money, and did not file any campaign finance reports before the attorney general sued.
As part of the lawsuit, the state uncovered meeting minutes revealing that the purpose of the joint campaign account was to “protect individual companies from public disclosure and possible criticism.”
In January, the Washington Supreme Court ruled that an $18 million fine for intentional violations of campaign finance law was not excessive.
Consumer Brands, which is based in Arlington, Va., admitted in the settlement that it violated state public disclosure laws. In a written statement Wednesday, its president and chief executive, Geoff Freeman, said the deal would allow the organization to move forward.
“Our agreement with Washington State not only saves our association millions of dollars, but it provides $3 million to hunger relief charities Food Lifeline and Northwest Harvest, causes aligned with the values of our industry,” Freeman said.
The 2013 GMO labeling measure, known as Initiative 522, failed by a vote of 51% to 49%.
FILE – Washington Attorney General Bob Ferguson speaks with reporters, Monday, Aug. 26, 2019, during a press conference in Seattle. A trade group that represents some of America’s largest food companies has agreed to pay $9 million for violating Washington’s campaign finance laws, after the state Supreme Court upheld a sentence twice as high. Ferguson, who sued the group in 2013, announced he was dropping his appeal and would instead settle the case for $9 million, including $3 million in donations to two charities that fight hunger. (AP Photo/Ted S. Warren, File)
