Chobani Must Face Lawsuit Over 'Zero Sugar' Yogurt Claim, Appeals Court Rules

A U.S. federal appeals court has revived a proposed class-action lawsuit against Chobani, ruling that the company must face claims it deceptively marketed its Greek yogurt as "sugar free." The lawsuit alleges the product's "Zero Sugar" label is misleading because it contains allulose, a naturally occurring sweetener.

Court Reinstates Deceptive Labeling Lawsuit

The 7th U.S. Circuit Court of Appeals in Chicago on Monday overturned a lower court's dismissal, sending the case back for further proceedings. In the ruling, Circuit Judge Thomas Kirsch, writing for a three-judge panel, found an amicus brief from the U.S. Food and Drug Administration (FDA) to be persuasive.

The court sided with the FDA's interpretation that its regulation for "total sugars" includes all monosaccharides, a category that encompasses allulose. This decision rejected Chobani's argument that allulose was exempt because it was not one of the specific examples, such as glucose or fructose, listed in the regulation.

The Core of the Dispute

The lawsuit, filed by consumers James and Abigail Franco, centers on Chobani's "Zero Sugar" yogurt, which the source material states contains four grams of allulose per serving. Current FDA regulations stipulate that a food may only be labeled "sugar free" if it contains less than 0.5 grams of sugar per serving.

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The plaintiffs claim they would not have bought the yogurt, or would have paid less for it, had they been aware of its sugar content. Judge Kirsch wrote that the allegation was not implausible, "given the absolute promise on Chobani’s products."

Implications for Chobani

The ruling means Chobani, a major player in the consumer foods sector, must continue to defend its labeling practices in court. The case highlights the ongoing legal scrutiny food manufacturers face over nutritional claims, which can carry significant financial and reputational risk if a class-action lawsuit is ultimately successful.

According to the report from Reuters, Chobani and its lawyers did not immediately respond to requests for comment. The decision is separate from another recent legal challenge Chobani faces from competitor Danone over alleged packaging similarities for a coffee product.