The U.S. Court of Appeals for the Seventh Circuit has revived a putative class action alleging Chobani deceptively labels its Chobani Zero Sugar Yogurt. Franco v. Chobani, LLC, No. 25-2087 (7th Cir., entered July 27, 2026). According to the court, federal regulations require foods advertised as sugar-free to contain less than a half gram of sugar. Chobani sold a yogurt that it advertised as sugar-free, but the yogurt contained four grams per serving of allulose, a naturally occurring sweetener. The plaintiffs allege Chobani deceptively markets the product under dozens of state consumer-protection laws. Chobani moved to dismiss the claims, alleging preemption, and the district court agreed.

At issue on appeal was whether allulose is considered a sugar under federal law. If it qualifies, the plaintiffs’ state law claims may proceed, but if not, their claims are preempted by the Federal Food, Drug, and Cosmetic Act, the court said. The Seventh Circuit reversed the lower court's holding, finding that allulose is a sugar under the relevant federal regulation and that the plaintiffs plausibly alleged consumer deception. The court said that the U.S. Food and Drug Administration filed an amicus brief in the case in which it took the position that the relevant statute is unambiguous and that total sugars as defined in the regulation include all monosaccharides, including allulose. “The federal requirements at issue are plain—food products cannot be labeled sugar free unless they have less than half a gram of sugar, and sugars include every monosaccharide, including allulose,” the court said. “[The plaintiffs] want to hold Chobani liable under state law for violating identical standards, and so their claims are not preempted.”

Read more stories in Issue 852 of the Food and Beverage Litigation and Regulatory Update >>