The Seventh Circuit Court of Appeals ruled on July 27, 2026, that Chobani, LLC must face a lawsuit regarding its labeling of yogurt products as "sugar free." This decision affects consumers who purchased Chobani's Zero Sugar Yogurt, which contains allulose, a sweetener that the plaintiffs argue qualifies as sugar under federal regulations. The ruling is significant as it allows consumers to pursue claims against the company for potential deceptive marketing practices.
The case, Jason Franco and Abigail Franco v. Chobani, LLC, was filed in the Northern District of Illinois and centers around whether allulose should be classified as sugar under federal law. If it is classified as sugar, then Chobani's labeling could be considered misleading, allowing the Francos to pursue their claims under various state consumer protection laws. The court's decision to reverse the lower court's dismissal of the case means that the Francos can continue their legal battle against Chobani.
Jason and Abigail Franco, the plaintiffs, purchased Chobani's yogurt with the understanding that it contained no sugar. They argue that the presence of allulose, which has four grams of sugar per serving, violates the Federal Food, Drug, and Cosmetic Act (FDCA) and misleads consumers. Chobani had previously moved to dismiss the case, claiming that the Francos' allegations were preempted by federal law, specifically the FDCA, which governs food labeling standards.
The dispute reached the Seventh Circuit after the district court ruled in favor of Chobani, agreeing that the claims were preempted by federal law. The court deferred to guidance from the Food and Drug Administration (FDA), which had previously stated that allulose might not need to be included in the total sugar count on labels. However, the Francos contended that this guidance was not definitive and did not preclude their claims.
In its ruling, the Seventh Circuit found that the FDA's definition of total sugars includes all monosaccharides, which means allulose qualifies as sugar. The court stated, "Allulose is a sugar under the relevant federal regulation and the Francos plausibly alleged consumer deception, which means their suit may proceed in the district court." The judges involved in the ruling were Circuit Judges Rovner, Kirsch, and Maldonado.
The impact of this ruling extends beyond Chobani. It sets a precedent that could affect other food manufacturers who label their products as sugar-free while containing sweeteners classified as sugars under federal law. Consumers may now have a clearer path to challenge misleading food labeling practices in court, potentially leading to more scrutiny of how food products are marketed.
With the Seventh Circuit's decision, the Francos are allowed to continue pursuing their claims against Chobani in the lower court. This ruling could lead to further legal battles over food labeling practices, particularly as consumers become increasingly concerned about transparency in food marketing. The outcome of this case may encourage other consumers to challenge similar labeling practices in the future.
As for what’s next, Chobani may still appeal the ruling to the U.S. Supreme Court, but it is unclear if they will take that step. The company may also face additional arguments in the lower court regarding the merits of the Francos' claims. The legal landscape surrounding food labeling and consumer protection continues to evolve, and this case could serve as a pivotal moment in that ongoing discussion.