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Golda, the popular chain of Israeli ice cream parlours, is facing a class action over its sugar-free offerings.
The company, which has more than 100 stores nationwide, could be forced to pay around NIS 350 million (£86.3 million) in compensation if a court finds it guilty of misleading its customers over flavours which were said to be sugarless.
A lawsuit lodged at the Central District Court in Lod alleges that Golda marketed two flavours - coffee and hazelnut - as sugar-free for several years, when they actually contained 13 times the amount of sugar allowed for such classification, or 6.6g per 100g, compared to a limit of 0.5g.
The firm has claimed in its defence that reasonable customers would understand that “no sugar” meant “no added sugar,” but this was rejected by the judge.
According to Channel 12, the class action includes anyone who bought “sugar-free” products at a branch of Golda, its sister company Anita, or their online outlets over the last seven years.
Attorney Ori Eldar told Channel 12 the court’s decision to hear the case sends a “clear message” to the food industry.
“Consumers seeking to avoid sugar, including people with diabetes and those following specific diets, are entitled to rely on the sign in front of them,” he said.
In a statement, Golda said: “The proceedings are only at a preliminary stage, and the court has not yet ruled on the merits of the claim and certainly has not awarded any compensation.
"We are convinced that as the proceedings progress, it will become clear that there is no basis for the claims or the amounts sought.
“Golda has made and continues to make every effort to act fairly and transparently toward its customers and has never sought to mislead them.
It will continue to act in this manner while defending its position in court.”
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