On November 5, 2003, the court granted final approval to the parties' $12+ million settlement in a nationwide action filed against Nestle Waters North America, Inc., which does business under the name Poland Spring Water Company, on behalf of all persons who have purchased Poland Spring brand bottled water since January 1, 1996. The action alleged that Nestle has violated the consumer fraud and deceptive trade practices acts of many states and breached its contracts with consumers by selling water that does not meet federal Food and Drug Administration standards and is not from the geological sources that the company advertises. Persons eligible to participate in the settlement should visit the settlement website for more information.

The action alleged that the labeling and advertising of Poland Spring Water is false and potentially misleading because: (1) the water is not "spring water" as defined by the Food & Drug Administration and any applicable local and state regulations; (2) the source is not located "deep in the woods of Maine" and comes from sources other than spring sources located within the state of Maine; and (3) the water is not from "pristine and protected sources," is not "naturally purified," actually comes from spring sources contaminated with toxic chemicals or under the direct threat of contamination, and is not utterly safe. The action seeks unspecified compensatory and punitive damages, and disgorgement of profits gotten through the misrepresentations. The action also alleged that Nestle cannot be trusted to take care of the natural resources from which it gets the water it sells.

The controversial settlement provides a combination of monetary and non-monetary relief. Among other things, Nestle has agreed to engage in extensive long-term monitoring of all of its Poland Spring Water spring sources. Nestle will provide $8,050,000 worth of coupons, product discounts, and free product samples over a five-year period. The company will also make $2.75 million in charitable contributions over a period of five years from the effective date of the settlement.

The long-term monitoring requirements under the settlement go beyond that which is required by local, state and federal law, and thus provide additional protection for consumers. As part of the monitoring, Nestle will accept or reject water for a period of five years. The monitoring will include measurement of turbidity, or clarity, levels, and Nestle will not use water that does not pass certain tests of clarity. The company will also set up rain gauges in areas of water collection to assure that more water than can be naturally replenished is not being taken from any one locality. Finally, Nestle will perform microscopic particulate analyses at each of the four sites it currently collects spring water from in the state of Maine: Poland Spring (located in Poland Spring), Garden Spring (located in Poland), Evergreen Spring a/k/a Pure Mountain Spring (located in Fryeburg), and Clear Spring (located in Hollis).

Over the next five years Nestle has agreed that it will not extract more than 350 million gallons of water per year from its Poland Spring facility, less than the amount set forth in the permit issued by Maine. It will also acquire new spring sources within Maine to meet increasing production demands of its Poland Spring Water.