A federal appeals court has brought back a proposed class-action lawsuit against Chobani, with plaintiffs claiming the company misled buyers by marketing certain Greek-style yogurt products as having zero sugar.
The 7th U.S. Circuit Court of Appeals in Chicago ruled Monday that consumers have the right to pursue claims that Chobani broke state consumer protection laws. At the heart of the case is the fact that Chobani Zero Sugar yogurt contains four grams of allulose per serving — a sweetener that occurs naturally in some foods.
Under FDA guidelines, food products cannot be labeled “zero sugar” or “sugar free” unless they contain less than 0.5 grams of sugar per serving. The agency’s rules govern what must appear on nutrition facts panels on product packaging.
Circuit Judge Thomas Kirsch, writing on behalf of a three-judge panel, said he found an FDA brief persuasive in its argument that total sugars include all monosaccharides — a category that covers allulose.
Chobani had argued that allulose shouldn’t be counted because FDA regulations only listed glucose, fructose, lactose, and sucrose as examples. Judge Kirsch rejected that argument.
“The agency’s brief is thorough, its reasoning is valid, and its position is consistent with earlier FDA statements about allulose and (its regulation),” Kirsch wrote in the ruling.
New York-based Chobani and its legal representatives had not responded to requests for comment as of Tuesday.
The two named plaintiffs in the case, James Franco and Abigail Franco, said they purchased Chobani Zero Sugar yogurt at a Costco near Chicago in 2023. They contend they either would not have bought the product or would have paid less for it had they been aware of its actual sugar content.
Judge Kirsch noted that it was irrelevant whether typical consumers would be concerned about allulose specifically. “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,” he wrote.
The case has been sent back to a federal judge in Chicago for further proceedings. An attorney representing the Francos declined to offer any comment on the ruling.
The decision came just one day after a Manhattan federal judge separately refused to dismiss a lawsuit filed by Danone — the maker of Dannon yogurt — which accuses Chobani of copying its packaging design and a slogan used for a line of ready-to-drink cold-brew coffee.
