When they see a label that says “Zero Sugar,” most people in a grocery aisle don’t give it much thought. It seems conclusive. Lastly. The kind of straightforward assurance that makes a purchase decision simple, particularly when you’re attempting to eat a little better without giving it too much thought. When James and Abigail Franco purchased Chobani Zero Sugar yogurt at a Costco near Chicago in 2023, they had precisely that thought. A federal appeals court has now determined that their dissatisfaction merits a proper hearing.
On July 28, 2026, the Chicago-based 7th U.S. Circuit Court of Appeals decided that a proposed class-action lawsuit against Chobani could proceed. Allulose, a naturally occurring sweetener used by the company in its Zero Sugar yogurt line, is at the heart of the case. There are four grams of it in each serving. Allulose counts as a monosaccharide, and monosaccharides count as sugar, according to the FDA’s position, which was presented in a brief that the court found convincing. A product may only have a “zero sugar” label if it has less than 0.5 grams of sugar per serving, according to federal regulations. That threshold is far away from four grams.
There is some logic in Chobani’s counterargument. The company notes that allulose behaves differently in the body than traditional sugars; it is technically listed separately in some nutritional contexts, contributes nearly no calories, and does not spike blood glucose like sucrose or fructose do. They claim that their Nutrition Facts panel accurately displays zero grams of added sugar and zero grams of total sugar. One could argue that allulose is in a truly gray area of food science. The issue is that while science thrives in gray areas, the law does not.
Writing for a panel of three judges, Circuit Judge Thomas Kirsch was straightforward about this. He admitted that the FDA’s regulation did not specifically mention allulose, but rather glucose, fructose, lactose, and sucrose. However, Chobani’s claim that the omission constituted an exemption was unsuccessful. According to Kirsch, the FDA brief was comprehensive and in line with previous agency statements. This type of judicial language typically indicates that a decision wasn’t very close.
Beyond the immediate legal outcome, this case is intriguing because it raises questions about how food companies balance consumer expectations with scientific nuance. Table sugar and allulose are actually quite different. It’s a true scientific distinction. However, a consumer is not considering monosaccharide classifications when they see “Zero Sugar” printed prominently on a yogurt cup. They’re thinking, “No sugar.” The lawsuit exists in the space between those two realities.
It’s difficult to ignore the fact that Chobani is currently dealing with other legal issues. Separately, a federal judge in Manhattan denied the company’s request to have a lawsuit from Danone dismissed. Danone had accused Chobani of stealing a slogan and packaging for a line of cold-brew coffee that was ready to drink. Corporate communications teams don’t like writing about two court setbacks in two days.
This case raises more general issues than just one particular brand of yogurt. It has to do with the legitimacy of health-conscious food labeling in general. In marketing, “zero” is a potent word. No calories. No fat at all. No sugar. These labels have a real impact on consumers’ decisions to buy, which is why they are regulated. It is reasonable to wonder what else might be framed similarly if Allulose is able to anchor a zero-sugar claim in ways that go beyond the regulation’s intent. Most consumers believe that someone is checking.
It remains to be seen if the Francos will ultimately win in a Chicago courtroom. Class certification is a challenge in and of itself, and Chobani will most likely resist vigorously at every turn. However, the appeals court’s decision to reopen the case indicates that the question is valid in the first place and that even a label as straightforward as “Zero Sugar” may have more legal nuance than it first seems.
