Odwalla Class Action Says ‘No Added Sugar’ Label is Misleading

Coca Cola was hit with a class action lawsuit alleging that its Odwalla beverages are falsely advertised as containing “No Added Sugar” and “100% Juice.”

Lead plaintiff Tara Casey alleges in her class action lawsuit that she and other consumers paid a premium for the Groovin’ Greens 100% Juice and Berry Greens 100% Juice sold by Odwalla, thinking that they were healthier than other similar beverages.

However, Casey says she was dismayed to find out that the juices naturally contain large amounts of sugar and that similar less expensive products also do not contain added sugar.

This is the second class action to hit Odwalla this month over their “No Added Sugar” label. Another class action was filed in California.

“Odwalla is a leading producer of over forty varieties of premium juices, smoothies, protein shakes and snack bars,” notes the plaintiff in her complaint. “Seeking to profit from consumer preferences for healthy food options, Defendants markets and prominently labels its Products with the label ‘No Added Sugar.’”

The plaintiff points to studies indicating that consumers are increasingly moving to healthy foods and sugar is “once again public enemy No. 1.”

“Given the influence of such claims, if a manufacturer is going to make a claim on a food label, the label must meet certain legal requirements that help consumers make informed choices and ensure that they are not misleading,” claims the plaintiff in her complaint.

According to the class action complaint, the federal Food and Drug Administration regulates what food manufactures can claim on a food label regarding a product’s sugar content. The plaintiff argues that the terms “no added sugar,” “without added sugar,” or “no sugar added” may be used only if (1) no sugars are added, (2) the product does not contain added content like jam, jelly, or concentrated fruit juice, (3) the sugars content has not been increased above the amount present in the ingredients by some means, (4) the food that it resembles and for which it substitutes normally contained added sugars, and (5) the product bears a statement that the food is not “low calorie” or “calorie reduced,” unless it meet additional requirements.

The plaintiff argues that because fruit and vegetable juices like the ones Odwalla sells do not normally contain added sugar, Odwalla’s “No Added Sugar” statements on their products’ labels violates FDA regulations.

The plaintiff seeks to represent a Class of New York residents who purchased Odwalla juices with the “No Added Sugar” labels. The plaintiff claims that Coca Cola and Odwalla are in violation of New York business law and the companies have been unjustly enriched by the allegedly deceptive marketing campaign.

Casey is represented by Todd S. Garber and D. Greg Blankinship of Finkelstein, Blankinship, Frei-Pearson & Garber LLP.

The Odwalla “No Sugar Added” Class Action Lawsuit is Tara Casey v. Odwalla Inc., et. al., Case No. 7:17-cv-02148, in the U.S. District Court for the Southern District of New York.