Israeli Court Approves 350 Million Shekel Class Action Against Golda Over Misleading 'Sugar-Free' Ice Cream Labeling

The Central District Court in Lod has certified a 350 million shekel class action lawsuit against Anita Ltd., owner of the Golda ice cream chain. The suit, filed by Sol Yarkoni, alleges that Golda sold ice cream labeled "sugar-free" which laboratory tests revealed contained approximately 6.6 grams of lactose sugar per 100 grams, originating from milk. The class action covers customers who purchased these "sugar-free" labeled ice creams over the past seven years.

Yarkoni, represented by attorneys Or Yarkoni, Omri Segev, and Uri Eldar, argued that consumers buy sugar-free products specifically to avoid sugar, and selling products labeled as such while containing sugar constitutes consumer deception and financial harm. Expert testimony attached to the suit highlighted potential health risks for diabetics consuming these products and noted that the Israeli Diabetes Association would likely not have approved such labeling if the lactose content had been disclosed.

Golda responded by questioning the plaintiff’s personal claim authenticity, suggesting the lawsuit was intentionally initiated to open a class action. The company also argued that the plaintiff purchased the ice cream only once and was aware or should have been aware that "sugar-free" often means "no added sugar," not zero sugar, based on her social media posts.

Judge Iris Rabinovitz Baron approved the class action, stating there is sufficient basis to investigate whether consumers were misled into purchasing the ice cream under the impression it was sugar-free. The court found the sugar content a material fact, especially for consumers with health or dietary needs. The approved claims include consumer deception, violation of consumer protection laws, breach of Israeli standards, public health law violations, negligence, and unjust enrichment.

The court also ordered Golda to pay 1,000 shekels in legal fees to the plaintiff’s attorneys. Golda emphasized that it has not been ordered to pay any compensation and that the case is still in preliminary stages. The company asserted its commitment to transparency and fairness and intends to defend itself vigorously in court.