Milk Duds are a milk chocolate-covered caramel candy. They are currently manufactured by The Hershey Company. According to the manufacturer, the word "Milk" in the name refers to the large amount of milk in the product; the use of "dud" came about because the original aim of having a perfectly round piece was found to be impossible.
The Hershey Company recently began to change the ingredients of some of its products, in order to replace the relatively expensive cocoa butter with cheaper oil substitutes. This was done to cut costs, rather than having to raise prices in the marketplace for products containing cocoa butter. Hershey's changed the description of the product and altered the packaging slightly along with the ingredients.
Though the new formula contains chocolate, according to United States Food and Drug Administration food labeling laws, these modified recipes which do not contain cocoa butter can not be legally described as candy coated milk chocolate.