Israeli Court Approves $100 Million Class Action Over Mislabeling of Sugar-Free Golda Ice Cream

The Central District Court in Lod has authorized a class action lawsuit against Anita Glida Ltd., operator of the Golda and Anita ice cream chains, for falsely labeling certain ice creams as "sugar-free." The lawsuit claims that hazelnut and coffee-flavored ice creams sold for years under this label contained lactose at levels 13 times above the Israeli standard for sugar-free products. Laboratory tests showed about 6.6 grams of lactose per 100 grams, while the standard permits less than 0.5 grams per 100 grams to qualify as sugar-free.

Judge Iris Rabinovitz Baron ruled that the labeling could mislead reasonable consumers into believing the products contained no sugar at all. The court rejected the company's argument that the label only meant no sugar was added, noting that clearer wording could have prevented consumer confusion. The lawsuit cites consumer deception, statutory violations, negligence, and unjust enrichment as grounds.

The plaintiffs seek to stop the use of the "sugar-free" label on these products, demand refunds for customers, and claim compensation for alleged damages. The class includes all customers who purchased these ice creams over the past seven years in Golda and Anita stores or online, with estimated damages totaling approximately 350 million shekels (about $100 million).

Following the court's approval, the company temporarily removed the disputed products as a precaution. It was also ordered to pay 40,000 shekels in legal fees to the plaintiffs. However, the court's decision to allow the class action does not determine the final outcome, which will be decided after the full trial. The case highlights consumer concerns about accurate food labeling, especially for those avoiding sugar for health reasons, and underscores the importance of transparency in product information.