As part of the settlement with California's attorney general, four food manufacturers agreed to reduce levels of a cancer-causing chemical acrylamide in their potato chips and french fries. Attorney General Jerry Brown's office announced that Frito-Lay, Kettle Foods (maker of Kettle Chips), and Lance Inc. (maker of Cape Cod Chips) have pledged to cut the chemical's levels and pay $600,000 in penalties and costs.

The lawsuit was initiated by Brown's predecessor, Bill Lockyer, who sued the manufacturers alleging they had failed to warn California consumers about the dangers of acrylamide, which was discovered in 2002 in food by a team of Swedish scientists.

Attorney General Jerry Brown said that other manufacturers should follow the lead of the four companies who reached settlement. Brown said the deal is a victory for consumers.

The company that was quickest to react was Lance Inc, whose Cape Cod chips are already nearly compliant. However, their Cape Cod Robust Russets contained 25 times the acceptable amount of acrylamide and are no longer being sold.

California also settled lawsuits with McDonald's Corp.; Wendy's International Inc.; Burger King Corp.; KFC, a subsidiary of Yum Brands Inc.; and Procter & Gamble Co. over acrylamide levels. The legal framework for these lawsuits is that California requires for decades that manufacturers post warning labels on products with carcinogens.

Acrylamide, or acrylic amide, is formed naturally when starchy foods, such as potatoes or bread, are heated to high temperatures. It is not found in food that has been boiled nor in foods that were not heated. The chemical is formed by the reaction between asparagine and reducing sugars or reactive carbonyls. The reaction occurs above 250 °F. Cigarette smoking is also a major acrylamide source.

Acrylamide is a potent neurotoxin and causes damage to the male reproductive glands in large amounts. It is also a carcinogen.