Golda ice cream chain faces NIS 350 million lawsuit over falsely labeled sugar-free options

The Golda ice cream chain faces a NIS 350 million class action lawsuit after a court approved the case on Sunday. The lawsuit alleges that several "sugar-free" ice cream options sold by the chain actually contained sugar.

Laboratory tests revealed that the products contained 6.6 grams of sugar per 100 grams of ice cream. This amount is over thirteen times the quantity permitted for a product to be labeled "sugar-free."

The case began in February 2024 when a customer, Sol Yarkoni, purchased what she believed to be sugar-free ice cream. She later experienced effects consistent with sugar consumption, prompting her to have the ice cream tested.

Golda argued that the labels were not misleading, claiming that "sugar-free" in dairy products implies no added sugar, not the removal of naturally occurring milk sugar (lactose). The company cited an expert who stated that similar sugar levels are approved by the Israeli Diabetes Association and do not pose a health risk.

However, the court sided with Yarkoni, referencing a legal precedent that recognizes "total failure of consideration" when product characteristics significantly differ from consumer expectations. The court found that consumers had a right to expect "sugar-free" products to contain no sugar, especially given that most of Golda's other products are not sugar-free. The court will determine the final financial damages in future proceedings.

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there was reason for Yarkoni and others to assume that ice cream labeled "sugar-free" was in fact sugar-free, noting the fact that most of Golda's products are clearly not sugar-free, giving further value to the label.