Court revives lawsuit over Chobani zero-sugar yogurt claim

The 7th U.S. Circuit Court of Appeals revived a proposed class-action lawsuit against Chobani on July 28, reopening claims that some of the company’s Greek-style yogurt was marketed as zero sugar even though a serving contained 4 grams of allulose.

The ruling keeps the consumer-labeling dispute alive and pushes the question back into court: what does “zero sugar” mean to shoppers walking the dairy aisle, and how much room do food companies have to rely on technical formulations when they make that claim on the front of a cup? A Reuters-linked summary said the panel focused on whether consumers could challenge Chobani’s label because the product included allulose, which the FDA treats as sugar. Because the case is a proposed class action, it could proceed on behalf of a larger group of consumers if the plaintiffs ultimately prevail.

For food makers, the case fits a familiar pattern in health-forward marketing. Claims such as zero sugar, low sugar, protein-packed and clean label can boost sales, but they also create legal exposure when plaintiffs argue that the packaging gives ordinary buyers a misleading impression of the product’s real composition. The court’s decision means Chobani must keep defending its label rather than ending the fight at the dismissal stage.

The legal battle over the company’s zero-sugar yogurt did not begin this summer. On May 17, 2023, ClassAction.org said a proposed class action alleged that Chobani’s “Zero Sugar” yogurt “contains quite a lot of sugar” in the form of allulose. Chobani later won a separate class action over its zero-sugar label on May 29, 2025, showing that the company has already scored one favorable result in related litigation even as another challenge moved forward.

Chobani has faced broader labeling scrutiny beyond the zero-sugar fight. On June 17, 2026, Barnow and Associates, P.C. said it was investigating the company’s 20G Protein yogurt products for potential deceptive labeling and advertising. Another Chobani class action, reported on April 24, 2025, alleged toxic chemicals in certain plain Greek yogurts. Together, the cases show how aggressively yogurt labels are being tested as shoppers pay closer attention to ingredients, nutrition panels and the promises printed on the package.

The July 28 ruling leaves Chobani with another round of litigation over whether a sugar-free claim can survive when the ingredient list points in a different direction.