That's not quite accurate. First off the sugar may be derived from any of a number of carbohydrates, including wood pulp and other stuff. While this alone isn't necessarily problematic, there may be alkalies and salts added to control the process and get the right amount of decomposition to the sugars. A wide variety of compounds fall under "caramel color" and the result of this is that, depending on the process and raw ingredients, certain carcinogens can be produced, and studies suggest that these carcinogens might be present in high enough quantities to pose a health risk. The FDA says the levels are fine, but they're also the idiots who think that aging cheese on wood boards should be banned. Here's a
story from Consumer Reports. Sadly, the issue has a lot of hype surrounding it, so it will likely be a while before we know for certain if there really is any health risk, but it's not as simple as it just being burnt sugar.