Bakery shut down after FDA allegedly finds sugar in 'sugar-free' snacks

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A New Jersey maker of muffins and other baked goods has been accused of distributing mislabeled food, including products described as sugar-free but still containing sugar.

The U.S. Food and Drug Administration said Wednesday that Edison-based Butterfly Bakery has agreed under a consent decree to shut down until it can meet all regulations.

The company referred questions to its president, who was not available.

Butterfly says its baked goods can be found in supermarkets and specialty stores nationwide. It got its start making sugar-free desserts that could be eaten by diabetics.

The FDA says tests over several years found sugar in goods labeled sugar-free and two to three times more fat or sugar in some products than claimed. The bakery also allegedly failed to disclose milk in some items.