Judge Won’t Nix Odwalla ‘No Sugar Added’ Class Action Lawsuit

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Coca-Cola lost its bid to dismiss a class action lawsuit alleging it deceptively labels Odwalla juices as “no sugar added” when it could not show that fruit juice generally contains added sugar.

Lead plaintiff, Stephen Wilson, alleged in his class action lawsuit that Coca-Cola’s “no added sugar” label on some Odwalla juices is deceptive because fruit juice does not usually contain added sugar.

Coca-Cola asked a California federal judge to dismiss the case because, they argued, the claims were pre-empted by Food and Drug Administration Regulations.

Coca-Cola argued that Odwalla drinks should only be compared to non-carbonated drinks with any amount of fruit juice when determining whether the FDA regulation on “no sugar added” labels applies. Coca-Cola said that its arguments are based on an FDA inspection guide.

U.S. District Court Judge Dale Fischer disagreed with Coca-Cola’s arguments to dismiss the case, noting that the class action only alleges that Odwalla Orange Juice should be compared to pasteurized pure squeezed 100% orange juice, not all fruit juices.

“The disagreement stems from how broadly or narrowly each side defines the category of food that Odwalla’s product ‘resembles and for which it substitutes,’” explained the judge in his order. “Defendants contend Wilson essentially reads the provision to require that the food is identical to the product in question.”

Further, said the judge, Coca-Cola failed to demonstrate that all juices contain added sugar. “Even assuming the Court were to adopt Defendants’ position, Defendants have failed to establish that the relevant category of food ‘normally contains added sugars,’” noted the judge in the order.

The class action plaintiff also contends that labels on other Odwalla drinks are misleading to consumers, including “100 percent juices” on Odwalla Berry Greens and Groovin’ Greens, as well as the orange juice, especially given the increased awareness of sugar consumption and the obesity epidemic plaguing the nation.

Coca-Cola also argued that the class action’s demand for an injunction against the labeling practice should be trimmed because the plaintiff will clearly never buy Odwalla juices again. Once again, Judge Fischer disagreed, noting that an injunction would protect other California residents from the alleged unfair business practices.

“If plaintiffs in false advertising actions are precluded from seeking injunctive relief because by bringing suit they admit knowledge of the alleged falsity, unlawful practices such as those alleged here could never be enjoined, and the purpose of the statute would not be served,” explained the judge in the order.

“Wilson seeks to represent a class of persons who will be harmed if Defendants are not enjoined,” elaborated the judge. “Further, it is obvious that Defendants will continue labeling their products in the same way absent an injunction – because they do not believe their labeling is improper.”

Wilson is represented by Robert K. Friedl, Trisha K. Monesi and Bevin Pike of Capstone Law APC.

The Odwalla “No Sugar Added” Class Action Lawsuit is Stephen Wilson v. Odwalla Inc., Case No. 2:17-­cv-­02763, in the U.S. District Court for the Central District of California.

UPDATE: On Feb. 28, 2018, a consumer is seeking Class certification for a lawsuit alleging that Odwalla Inc.’s “no added sugar” label on its fruit juice is misleading.