Costco Kirkland Electrolyte Lawsuit: Allulose and Sugar-Free Label

Costco is facing a new class action lawsuit alleging that its Kirkland Signature Hydration Electrolyte Drink Mix is deceptively marketed as "sugar-free" despite containing an ingredient called allulose.

The suit centers on shoppers who bought the product specifically to avoid sugar. It alleges that allulose is itself a simple sugar, and that even though it appears on the ingredient list, a reasonable consumer could still be misled by the prominent "sugar-free" claim on the front of the package.

According to the complaint, federal regulations only permit a "sugar-free" label when a product contains less than 0.5 grams of sugar per serving. The lawsuit claims the packaging fails to disclose how much allulose is in each stick, and alleges, on information and belief, that each stick exceeds that 0.5-gram threshold, since allulose is listed as the first ingredient and each stick contains 7 grams of total carbohydrates. The complaint further argues that the nutrition panel's listing of zero grams of total sugars, paired with a small asterisk describing allulose as a dietarily insignificant amount of sugar, doesn't cure the misleading front-label claim.

The plaintiff wants to represent a nationwide class of purchasers, along with a subclass of Illinois buyers, who bought the sugar-free products for personal use. The lawsuit alleges violations of the Illinois Consumer Fraud and Deceptive Business Practices Act and the Washington Consumer Protection Act, as well as unjust enrichment. It seeks a jury trial, damages, restitution, attorneys' fees, and an order barring Costco from continuing to sell the products under the current labeling.