A lawsuit filed on September 30 claims Costco’s Kirkland Signature electrolyte drink mix isn’t truly sugar-free—despite the sugar-free claim on its packaging. The complaint alleges it contains allulose, a type of sugar. The Food and Drug Administration (FDA) has said it does not intend to take enforcement action when manufacturers don’t label allulose as sugar; however, the lawsuit calls the mix’s marketing “health-washing” and says it misleads shoppers.
Credit: Simply Recipes / Costco
What the Lawsuit Alleges
Mason Maldonado, an Illinois resident, sued Costco Wholesale Corporation in the U.S. District Court for the Western District of Washington, according to court records. MyNorthwest, which obtained the complaint, describes the suit as a proposed class action. It targets Costco’s Kirkland Signature Hydration Electrolyte Drink Mix, specifically the 40-stick sugar-free variety pack with Strawberry Watermelon and Lemon Lime flavors.
According to MyNorthwest, the lawsuit claims that allulose, the first ingredient in both flavors, is “a monosaccharide and, therefore, a sugar under the applicable federal and Illinois labeling standards.” It says Maldonado wouldn’t have bought the product, or would have paid less, had he known it contained sugar. The product’s packaging claims allulose “adds a dietarily insignificant amount of sugar.”
Maldonado is seeking damages on behalf of anyone who purchased the product, and a court order requiring Costco to stop or correct the labeling, MyNorthwest reports.
Why Allulose Labeling Is Confusing
Allulose is a sugar that occurs naturally in small amounts in foods including wheat, raisins, dried figs, molasses, maple syrup, and brown sugar.
In 2020, the FDA released Guidance for Industry stating it wouldn’t take enforcement action against companies that omit allulose from the Total Sugars and Added Sugars lines on nutrition labels. However, companies must still count the sugar toward Total Carbohydrates. The agency noted that allulose has negligible calories and does not raise blood sugar or insulin levels, findings that independent studies support.
The lawsuit joins a wave of similar cases. Bloomberg Law reported in September that nearly 60 lawsuits have been filed against food producers over “zero sugar” labels on allulose-sweetened products. In July, the Seventh U.S. Circuit Court of Appeals allowed a similar case against Chobani to proceed.
Where the Case Stands
As of October 15, 2026, Costco hasn’t filed a response, and a judge hasn’t determined whether the case can proceed as a class action. Costco hasn’t publicly responded to the lawsuit. There is no settlement or claims process for purchasers at this stage. This story will be updated with any new developments.
Read the original article on Simply Recipes