A U.S. federal appeals court has ruled that Chobani must face a proposed class-action lawsuit alleging that the labeling on its zero-sugar yogurt products misleads consumers, reviving a case that had previously been dismissed.
The decision revives claims brought by consumers who argue that Chobani’s marketing of its “Zero Sugar” yogurt line creates a false impression about the healthfulness of the products, which contain sweeteners and other additives despite the sugar-free designation.
At the center of the dispute is whether reasonable shoppers could be deceived by the front-of-package claims. The plaintiffs contend that the labeling downplays the presence of ingredients used to replicate the taste and texture of traditional yogurt.
The appeals court found that the allegations were sufficient to proceed, overturning a lower court’s earlier dismissal. The ruling means the case will return to the trial court, where the merits of the consumer claims will be examined.
Chobani, one of the largest yogurt makers in the United States, has positioned its zero-sugar range as part of a broader push into products marketed to health-conscious consumers. The company has maintained that its labeling complies with applicable regulations.
The case adds to a growing wave of litigation targeting food and beverage companies over health and nutrition claims, a trend that has intensified as brands compete to capture demand for lower-sugar and “better-for-you” offerings.
Similar disputes have tested how much latitude manufacturers have in framing ingredient content on packaging. Legal challenges over product labeling have become increasingly common across the consumer goods sector, echoing other high-profile cases such as the class actions confronting major consumer product makers in recent years.
This development comes as regulators and courts face mounting questions over how nutritional claims are presented to shoppers, particularly as sugar reduction becomes a central marketing message across the industry.
The reinstated lawsuit is expected to move forward to further proceedings, where Chobani will have the opportunity to contest the allegations. The outcome could carry broader implications for how food companies label products marketed as free of sugar.