Chobani faces revived class action over 'zero sugar' yogurt label

A federal appeals court reinstated a class-action lawsuit against Chobani, ruling that the company may have misled consumers by labeling its Zero Sugar yogurt as sugar-free despite containing allulose, a sweetener that the FDA counts as a sugar. The 7th U.S. Circuit Court of Appeals in Chicago reversed a lower court dismissal, citing an FDA brief that allulose falls under total sugars. Judge Thomas Kirsch wrote that Chobani's absolute promise of 'sugar free' made consumer deception plausible. Plaintiffs James and Abigail Franco alleged they bought the yogurt at a Chicago Costco in 2023 and would have paid less or not purchased it if aware of the allulose content. Chobani defended its labeling, stating allulose is a natural non-sugar sweetener and that its Nutrition Facts panel accurately shows 0g total sugar. The case returns to district court.