Key facts
- A federal appeals court revived a class-action lawsuit against Chobani over its "Zero Sugar" yogurt.
- The lawsuit alleges Chobani falsely advertised the yogurt as sugar-free.
- The court ruled that the presence of allulose, a sweetener, could violate state consumer protection laws.
- The FDA considers allulose as part of total sugars, which could invalidate "sugar-free" claims.
- The case has been returned to a federal judge in Chicago.
A federal appeals court has revived a proposed class-action lawsuit accusing Chobani of deceiving consumers by falsely advertising some of its Greek-style yogurt as sugar-free. The 7th U.S. Circuit Court of Appeals in Chicago ruled that consumers can attempt to demonstrate that Chobani violated state consumer protection laws due to the presence of four grams per serving of allulose, a naturally occurring sweetener, in its Chobani Zero Sugar yogurt.
Circuit Judge Thomas Kirsch, writing for a three-judge panel, found persuasive an FDA brief stating that total sugars include all monosaccharides, such as allulose. Kirsch rejected Chobani's defense that allulose did not qualify because the FDA regulation listed only glucose, fructose, lactose, and sucrose as examples. The judge noted that the agency's position was thorough, valid, and consistent with earlier FDA statements.
Kirsch stated that it was not relevant whether reasonable consumers would care about allulose, adding that the plaintiffs had plausibly alleged that consumers were misled by the "sugar free" promise on Chobani's products. The appeals court has sent the case back to a federal judge in Chicago. Separately, a Manhattan federal judge recently rejected Chobani's attempt to dismiss a lawsuit filed by Danone, which claims Chobani copied packaging and a slogan for a ready-to-drink cold-brew coffee line.