Chobani Must Face Lawsuit Over “Zero Sugar” Yogurt Claims, Appeals Court Rules

A federal appeals court has revived a proposed class-action lawsuit accusing New York-based yogurt manufacturer Chobani of misleading consumers by marketing one of its products as containing “zero sugar.”

The 7th U.S. Circuit Court of Appeals ruled that the lawsuit involving Chobani Zero Sugar yogurt may move forward after previously being dismissed by a federal judge in Illinois.

The case was brought by Jason and Abigail Franco, who alleged that they purchased the yogurt believing it was sugar-free. The product reportedly contained four grams of allulose per serving, a naturally occurring sweetener found in small amounts in foods such as figs and raisins.

Court Examines Definition of Sugar

Federal regulations generally prohibit companies from labeling food as “zero sugar” or “sugar free” unless it contains less than one-half gram of sugar per serving.

The central issue in the case is whether allulose legally qualifies as sugar under federal food-labeling regulations.

The appeals court determined that the federal definition of “total sugars” includes all monosaccharides, a category that includes allulose. The three-judge panel also found that the consumers had plausibly alleged that Chobani’s labeling could be deceptive.

The ruling reverses a previous decision by the U.S. District Court for the Northern District of Illinois. That court had dismissed the lawsuit after relying on Food and Drug Administration guidance that allows allulose to be excluded from the total-sugar amount shown on Nutrition Facts labels.

The appeals court said that guidance represented the FDA’s current enforcement policy but did not formally change the federal regulation defining sugar.

Chobani Defends Its Labeling

Chobani has defended the product’s labeling, describing allulose as a naturally occurring sweetener that is metabolized differently from traditional sugars.

The company said the yogurt’s Nutrition Facts panel accurately lists zero grams of total sugar and zero grams of added sugar.

The appeals court did not rule that Chobani is liable or that consumers were definitively misled. Instead, the ruling allows the plaintiffs to continue pursuing their claims and attempt to prove them in federal district court.

The case will now return to a federal judge in Chicago for additional proceedings.

What the Decision Means

The ruling could have broader implications for food manufacturers that use allulose and other alternative sweeteners while promoting products as sugar-free.

Questions concerning how consumers interpret terms such as “zero sugar,” “no sugar” and “sugar free” are likely to remain an important issue as companies introduce more foods made with alternative sweeteners.

No class has yet been certified, and the allegations against Chobani have not been proven in court.