Chobani must face class-action suit over its "zero sugar" yogurt label, appeals court ruled

Chobani must face a proposed class-action lawsuit alleging the company misled consumers with its "zero sugar" yogurt label, a federal appeals court ruled on Monday. The 7th U.S.

Circuit Court of Appeals in Chicago reinstated the lawsuit, holding that the plaintiffs may pursue claims that Chobani ran afoul of state consumer protection statutes given that each serving of Chobani Zero Sugar yogurt contains four grams of allulose, a sweetener found in nature. The FDA prohibits companies from labeling a food product "zero sugar" or "sugar free" unless it contains less than 0.5 grams of sugar per serving.

Circuit Judge Thomas Kirsch, authoring the opinion on behalf of a three-judge panel, was convinced by an FDA brief arguing that the category of total sugars encompasses every monosaccharide, allulose included. Judge Kirsch dismissed Chobani's contention that allulose falls outside the definition of sugar on the grounds that the relevant FDA regulation enumerated only glucose, fructose, lactose, and sucrose. "The agency's brief is thorough, its reasoning is valid, and its position is consistent with earlier FDA statements about allulose," Judge Kirsch wrote.

The court also said it did not matter whether reasonable consumers would care about allulose. "The Francos have alleged that consumers were fooled by Chobani's labels, and given the absolute promise on Chobani's products (sugar free), we do not find that allegation implausible," Judge Kirsch wrote. The named plaintiffs, James Franco and Abigail Franco, claimed that after buying Chobani Zero Sugar yogurt at a Costco $COST near Chicago in 2023, they would have either skipped the purchase or paid a lower price had they been aware of the product's actual sugar content.

A lawyer for the Francos declined to comment, according to Reuters. The New York-based company disputed the court's conclusion. In its statement, Chobani characterized allulose as a non-sugar sweetener that occurs in nature and insisted its labeling is accurate.

"The Nutrition Facts panel accurately shows the yogurt contains 0g total sugar and 0g added sugar," the company said. The matter was sent back to the district court in Chicago for further proceedings.