Thank you all for the great discussion.
It seems Caramel Color does not have a straightforward answer to being natural or artificial. I tend to agree that Class 1 is natural in theory, but not quite meeting FDA's definition. However, to call it synthetic or artificial is a stretch, as again, it is overcooked sugar (i.e. natural ingredient).
Labelling as Caramel Color is agreed. However, keeping with a brand that uses "No Artificial Colors and Flavors" is where the debate really comes in. Like many rules, FDA is built on interpretation and presenting data to drive your reasoning. With that said, Caramel Color (in my opinion) falls in a regulatory gray area. I do not consider Class 1 to be artificial per the CFR, but the EU may define this more stringently (i.e. 150a).
Side note: Class 1 does not contain 4-MEI (known carcinogen also on prop 65 list).
That makes more sense now.
Do you put "no artifical colors or flavors" on the product label. Or, is it more of philosophical position? "When asked, we tell people our products dont contain artifical flavors or colors"
I agree, it does seem like a stretch, its burnt sugar. But like GMO stated if acids or alkali are added, some poeple may consider that no longer natural. Perhaps use an organic certiifed caramel color as it would be harder to argue that a organic caramel color is not natural (I beleive the are nearly the same as conventional in terms of function) or consult a flavor / color house for other suggestions or better legal clarification.
Or, continue as is. Worst possible outcomes are: the FDA decides to take an issue and you have to remove it from label or marketing / reformulate. Or, some watchdog type group or class action ambulance chaser decides they are going to drag you through the mud and / or extort your organization. Neither are very likely, but they are risks.