Israeli Court Approves Class Action Over Misleading Sugar-Free Label on Golda Ice Cream

The Central District Court in Lod has authorized a class action lawsuit against Anita Glida, operator of the Golda ice cream chain, over allegations of misleading labeling. The lawsuit claims that ice creams marketed as "sugar-free" actually contained about 6.6 grams of lactose per 100 grams, exceeding the legal limit for sugar-free products by over 13 times. The products in question include flavors such as "Sugar-Free Hazelnut" and "Sugar-Free Coffee."

Laboratory tests presented to the court showed the lactose content far surpassed the regulatory threshold of less than 0.5 grams of sugar per 100 grams required for sugar-free labeling. Golda argued that the label referred only to the absence of added sugar and that reasonable consumers would understand this. However, the court rejected this defense at this stage, stating the company failed to justify the broad "sugar-free" claim when more precise wording was possible.

The lawsuit covers consumers who purchased these products over the past seven years, with the estimated total damage to the class reaching approximately 350 million shekels. The court also approved consideration of non-monetary damages for consumers' autonomy violation, preliminarily valued at 300 shekels per class member. The requested remedy includes full refunds for the affected products, and the court has issued an injunction preventing Golda from labeling these ice creams as sugar-free.

It is important to note that the 350 million shekels figure represents the estimated aggregate damage and not an awarded sum. The 300 shekels per consumer is also a proposed compensation subject to further proceedings. The court's decision now allows the case to proceed as a class action, with final liability and compensation to be determined later. Golda ice creams with the disputed labeling are no longer sold in the chain.

Summary: The Israeli Central District Court approved a class action against Golda ice cream for falsely labeling products as sugar-free despite high lactose content, with potential damages estimated at 350 million shekels. The court barred the sugar-free label and allowed the case to proceed, with compensation details to be decided in future proceedings.