Innofoods “Keto” Snacks Contain Sugar and Carbs Class Action

At issue in this class action are two snacks made by Innofoods USA, Inc., Keto Coconut Clusters and Dark Chocolate Keto Nuggets. The complaint brings suit against Innofoods and Costco Wholesale Corporation, alleging that the snacks are deceptively labeled and marketed because the products are not truly Keto-style eating because they contain cane sugar and are high in net carbohydrates.

Three classes have been defined for this action:

• The California Class is all persons in California who bought the products for personal or household use, and not for resale or distribution, between August 25, 2018 and the date of judgement in this case.
• The National Class is the same as the National Class, except that it includes all persons in the US rather than just in California.
• The Consumer Protection Class is all persons who live in states in the US with similar consumer protection laws, breach of express warranty laws, and breach of implied warranty law, who bought the products for personal or household use and not for resale or distribution, between August 25, 2018 and the date of judgment in this case.

The Keto diet has become very popular in the US. The complaint alleges that it “essentially aims to force your body into ketosis and is high in fat, moderate in protein, and low in carbs.” Its purpose is to force a person’s body to fuel itself in a different way: “Instead of relying on sugar (glucose) that comes from carbohydrates (such as grains, legumes, vegetables, and fruits), the Keto Diet relies on ketone bodies, a type of fuel that the liver produces from stored fat.”

However, another trend for consumers is to eat a plant-based diet with less meat. The complaint alleges, “This can [present] keto dieters with a conundrum: How to eat a high-protein diet without tons of meat.” According to the complaint, Innofoods has tried to solve this problem by offering keto snacks made with plant-based ingredients that are still keto-friendly, like almonds, pecans, or pumpkin seeds.

Page 3 of the complaint shows the packaging for the products at issue. The largest word on each package is “Keto.” The complaint alleges that the packages’ terms and imagery are meant to make consumers believe that the snacks are in keeping with a keto diet.

“However,” the complaint asserts, the company’s “labeling, advertising, and marketing campaign is false and misleading because: (1) the Products contain cane sugar; (2) the Products are high in net carbohydrates.” The complaint alleges that these two characteristics are not in keeping the keto diet, and that this makes the “keto” representations false and misleading.

Article Type: Lawsuit
Topic: Consumer
Tags: Deceptive Advertising, Deceptive Labels, Keto Claims