A popular soap brand is in hot water over 'natural' ingredient claims — see if you’re eligible for part of a $9-million settlement

Filed in 2025 in California, the lawsuit Guzman et al v. Dr. Squatch, LLC alleged that Dr. Squatch deceptively used the word “natural” in its marketing when it really used synthetic ingredients in many of its products. According to the plaintiffs, these “false and misleading representations” led Dr. Squatch to unfairly command a “premium price” versus its competitors.

For its part, Dr. Squatch “has at all times denied, and continues to deny, the allegations and that it has engaged in any wrongdoing. Specifically, Dr. Squatch maintains that the Products were properly labeled as natural.”

Although Dr. Squatch doesn’t admit guilt, it recently agreed to settle with the plaintiffs for $9 million.

Moneywise reached out to Dr. Squatch for further comment, but we didn’t hear back by the time of publication.​

The nuance behind ‘natural’

​“Natural” is one of those feel-good words splashed across many items you see at the supermarket — but what does it actually mean?​

Legally speaking, not much.

Even though it makes sense why customers would opt for something “natural” rather than “synthetic,” this term really doesn’t hold a ton of weight with the Food and Drug Administration (FDA). In fact, the FDA says it doesn’t regulate this word on soap.

As the agency explained, “The laws and regulations that FDA enforces do not have definitions for ‘natural’ or ‘organic.’ The same requirements apply to your product no matter whether the ingredients are plant, animal, mineral, or synthetic. It’s important not to assume that using only ingredients from plants will make your products safe.”

Even Dr. Squatch admits in a blog that natural isn’t necessarily superior to synthetic, claiming that, “Synthetic detergent formulas may use surfactants like sulfates with other additives, but synthetic doesn’t automatically mean harmful any more than natural automatically means safe.”

Yet it still argues that natural ingredients are the preferred choice for deep cleaning. The company also says it uses only naturally derived ingredients, per the International Organization for Standardization (ISO) 16128.

So, what’s the issue here? From the plaintiffs’ eyes in the lawsuit, over half of the ingredients in Dr. Squatch’s products fit the definition of synthetic rather than natural. They cited examples like stearyl alcohol, magnesium hydroxide, and triethyl citrate from the company’s products.

Since there aren’t clear-cut formulas for “natural” soaps, customers will have to decide whether Dr. Squatch’s products are “natural enough” for their preferences. Thankfully, there’s less ambiguity about who can claim some of this settlement money.

How to claim a settlement from Dr. Squatch

​As long as you bought Dr. Squatch products between Nov. 1, 2018, and Aug. 29, 2026, you’re probably good to go to submit a claim.​