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FinanceChobani must face class-action suit over 'zero sugar' yogurt label
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A federal appeals court ruled that Chobani must face a proposed class-action lawsuit alleging its 'zero sugar' yogurt label misled consumers. The 7th U.S. Circuit Court of Appeals in Chicago reinstated the lawsuit, holding that plaintiffs may pursue claims under state consumer protection statutes. The dispute centers on Chobani Zero Sugar yogurt, which contains four grams of allulose per serving. The FDA prohibits 'zero sugar' or 'sugar free' labels unless a product contains less than 0.5 grams of sugar per serving. The court was convinced by an FDA brief arguing that total sugars encompass all monosaccharides, including allulose. Judge Thomas Kirsch dismissed Chobani's argument that allulose falls outside the definition of sugar. The named plaintiffs, James and Abigail Franco, claim they would not have purchased the yogurt or would have paid less had they known the actual sugar content. Chobani maintains its labeling is accurate, noting the Nutrition Facts panel shows 0g total sugar. The case was sent back to district court for further proceedings.
Source report
By: Cris Tolomia Source: Quartz
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 violated state consumer protection statutes. Each serving of Chobani Zero Sugar yogurt contains four grams of allulose, a sweetener found in nature.
FDA Regulations on Sugar Labeling
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, writing for a three-judge panel, was persuaded by an FDA brief arguing that the category of total sugars encompasses every monosaccharide, including allulose.
Judge Kirsch dismissed Chobani's argument that allulose falls outside the definition of sugar because the relevant FDA regulation only enumerated 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 stated that 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.
Plaintiffs' Claims
The named plaintiffs, James Franco and Abigail Franco, claimed that after buying Chobani Zero Sugar yogurt at a Costco near Chicago in 2023, they would have either skipped the purchase or paid a lower price had they known the product's actual sugar content. A lawyer for the Francos declined to comment, according to Reuters.
Chobani's Response
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.
Next Steps
The matter has been sent back to the district court in Chicago for further proceedings.
Source
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Chobani to face class-action suit over zero sugar yogurt label