Chobani beats class action over 'zero sugar' label

May 29 (Reuters) - Chobani escaped a proposed class action over claims its 'Chobani Zero Sugar' yogurt actually contains sugar, after an Illinois federal judge on Thursday said the labeling met U.S. Food and Drug Administration requirements.
The lawsuit accused Chobani of misleading consumers by failing to count the allulose – a fruit-derived sweetener – in the sugar content of its 'Zero Sugar' products.
U.S. District Judge John Tharp Jr. in Chicago said U.S. Food and Drug Administration regulations govern how the yogurt is labeled and outweigh state consumer protection laws about labeling.
The agency has not definitively said whether allulose is counted as sugar in its regulation governing nutrition labels for food products, but it has said that it is not currently treating allulose as a sugar and won't go after companies that leave it out of their products' sugar content listed on the label, Tharp said.
Tharp dismissed the claims brought by the named plaintiffs and the proposed class of nationwide consumers.
Attorneys for Chobani did not immediately respond to requests for comment, nor did attorneys for the proposed class.
Four shoppers from Illinois, Arizona and Kansas filed the lawsuit in 2023, claiming they were misled by the 'Zero Sugar' labeling on the yogurts. Allulose is a monosaccharide or simple sugar with a chemical structure similar to fructose, so it isn't 'zero sugar,' the shoppers said.
The lawsuit, which brought claims under 37 states' consumer protection laws, sought damages and disgorgement of Chobani's profits, among other things.
Chobani moved to dismiss the lawsuit, pointing to the FDA's statements on allulose. Allowing the lawsuit to move forward would deter the use of a sugar-substitute that the FDA believes could improve public health by reducing sugar consumption, the company said.
Tharp agreed, saying that while the FDA hasn't issued its definitive statement on allulose, its comments on how it views allulose have expressly authorized the 'Zero Sugar' label.
The case is Jason Franco et al v. Chobani LLC, U.S. District Court for the Northern District of Illinois, No. 1:23-cv-03047.
For Chobani: Drew Tulumello of Weil, Gotshal & Manges; and Erik Ives of Fox Swibel Levin & Carroll
For the plaintiffs: Yates French and Heather Kramer of Rathje Woodward; and Alexander Burke of Burke Law Offices

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