Allulose Is Sugar, 7th Cir. Rules in Chobani Labeling Case
A federal appeals court held that allulose is a 'sugar' under federal labeling regulations, reviving a proposed class action against Chobani and exposing food companies to similar state-law claims for 'zero sugar' marketing.
The U.S. Court of Appeals for the Seventh Circuit revived a proposed class action alleging Chobani LLC deceptively markets its 'Chobani Zero Sugar Yogurt.' The court reversed a lower-court dismissal, holding that the sweetener allulose is unambiguously a 'sugar' under controlling federal food labeling regulations. This finding was critical because it meant the plaintiffs' state-law consumer protection claims were not preempted by the Federal Food, Drug, and Cosmetic Act.
This decision creates significant litigation risk for the growing number of food and beverage companies using allulose while making 'sugar-free' or 'zero sugar' claims. By dismantling a key preemption defense, the ruling provides a clear path for consumer class actions under state law. The court's opinion was supported by an amicus brief from the U.S. Food and Drug Administration, lending it substantial authority. The case, Franco v. Chobani, will now proceed in the district court. Food manufacturers using allulose or similar novel sweeteners should promptly review their product labeling and marketing materials to assess their vulnerability to similar challenges, which are already being filed against other companies.