Chobani must face lawsuit over zero-sugar yogurt claim, US appeals court rules

Danone SA

28/07/2026 14:55

    By Jonathan Stempel
    July 28 (Reuters) - A federal appeals court 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 on
Monday that consumers can try to show Chobani violated state
consumer protection laws because its Chobani Zero Sugar yogurt
contained four grams per serving of allulose, a naturally
occurring sweetener.
    * The U.S. Food and Drug Administration regulates the
contents of nutrition facts panels on product packaging, and
says companies may not label food as "zero sugar" or "sugar
free" unless it contains less than 0.5 grams of sugar per
serving.
    * Writing for a three-judge panel, Circuit Judge Thomas
Kirsch found persuasive an FDA brief that said total sugars
included all monosaccharides, including allulose.
    * Kirsch rejected Chobani's argument that allulose didn't
qualify because the FDA regulation listed only glucose,
fructose, lactose and sucrose as examples.
    * "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.
    * New York-based Chobani and its lawyers did not immediately
respond to requests for comment on Tuesday.
    * The named plaintiffs James Franco and Abigail Franco said
they bought Chobani Zero Sugar yogurt at a Costco near Chicago
in 2023, and would not have done so or would have paid less had
they known its sugar content.
    * Kirsch said it didn't matter whether reasonable consumers
would care about allulose. "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 appeals court returned the case to a federal judge in
Chicago.
    * A lawyer for the Francos declined to comment.
    * The decision came one day after a Manhattan federal judge
rejected Chobani's bid to dismiss a lawsuit by Danone  DANO.PA ,
which makes Dannon yogurt, claiming it copied packaging and a
slogan for a line of ready-to-drink cold-brew coffee. 


 (Reporting by Jonathan Stempel in New York; Editing by Mark
Porter)
 ((jon.stempel@thomsonreuters.com ; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net /))