Research showed the dye could cause cancer in animals in high doses. But the agency concluded it was safe in the amounts used in food.
California's Environmental Protection Agency reviewed the research on synthetic dyes and found evidence that when consumed in food they can negatively affect children's behavior.
Over the past few years, there have been an increasing number of state bills to ban certain additives and set limits for certain contaminants.
The agency says it has evaluated the safety of Red No. 3 "multiple times" since its original approval for use in food in 1969.
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