Consumer Brands Association to pay $9 million, with $3 million going to charity

The Consumer Brands Association has agreed to pay $9 million to settle a nearly decade-old lawsuit over campaign finance violations in Washington state, ending a lengthy court battle over one of the largest fines levied against an association.

CBA and the Washington State attorney general's office announced the deal Wednesday. The agreed amount is half of what the association was ordered to pay by Washington courts; $3 million of the total will go to hunger relief charities Food Lifeline and Northwest Harvest.

"Today's resolution officially closes the chapter on an issue from the past and allows Consumer Brands to turn its full focus to the organization's future, championing an industry that Americans depend on every day," CBA CEO Geoff Freeman said in a statement.

CBA—formerly the Grocery Manufacturers Association—was fined $6 million by a Washington state judge in 2016 for violating the state's campaign finance disclosure law. The judge then trebled the penalty to $18 million after concluding the association had intentionally withheld information about which companies paid for its 2013 campaign against a state ballot measure on food labeling.

The case went before the Washington Supreme Court twice. In the court's most recent ruling in January, the justices declined to overturn the $18 million penalty in a 5-4 decision. The majority ruled CBA was "involved in several illegal activities that together amounted to failing to register and intentionally concealing the true source of donations." However, the minority questioned whether the large fine ran afoul of Eighth Amendment protections against excessive penalties.

CBA suggested at the time it would appeal the decision to the U.S. Supreme Court. Instead, both sides hammered out an agreement. The association took responsibility for failing to disclose its donors in a timely manner and apologized to Washington voters, according to the stipulated judgment. The group agreed to a $6 million civil penalty and a $3 million donation to charity.

"Illegal dark money has no place in Washington elections," state Attorney General Bob Ferguson said in a statement. "My office will be relentless ensuring dark money special interests that intentionally violate our campaign finance laws will be held accountable—even if it takes a decade. This resolution requires GMA to finally accept responsibility for its intentional violation, pay a significant penalty and help put food on the table for Washingtonians in need."

CBA has undergone significant changes since the lawsuit was first filed. The group hired Freeman as CEO in 2018 and rebranded in 2020. The group reported revenue of $19 million in 2019.