Climate Neutral Labeling Lawsuit Dismissed by Court

A proposed class action lawsuit challenging Mondelēz International, Inc.’s labeling on its “Zbar” snack bars has been tossed by a federal judge, who held that the company’s “climate neutral certified” claim was factual and could not mislead a reasonable consumer.

The court’s October 27, 2025, order turns on the inclusion of the word “certified” in the claim.  Since the product was factually certified by a third party called Change Climate Project, the court found no likelihood of deception, and dismissed the case with prejudice.

“Mondelēz did not advertise that its product was in fact climate neutral, but instead that its product was certified as climate neutral….There is nothing deceptive about Mondelēz including on its packaging a true statement,” the court wrote.

The plaintiff had alleged that the label is likely to mislead a reasonable consumer into believing that the product does not contribute to climate change, despite the fact that the product results in “roughly 54,000 tons of carbon dioxide equivalent” emissions annually.  According to the complaint, the product only obtained its certification due to the purchase of carbon offset credits, which are often fraudulent.

FTC Green Guides

To support her arguments, the plaintiff pointed to environmental guidance promulgated by the Federal Trade Commission (FTC) known as the Green Guides, which are codified into California law.  The Green Guides caution that third-party certifications do not relieve marketers of the obligation to substantiate all claims reasonably conveyed by the certification.

The court, however, found that although the label did not identify the certifier by name, the climate neutral claim’s placement, design, and wording made clear that the certification came from a third party.  Accordingly, “it cannot reasonably be attributed to Mondelēz.”

“Reasonable consumers are generally not expected to conduct independent research to substantiate claims made on a product’s packaging, but neither are they permitted to defy common sense and everyday experiences,” order states.

The case is Salguero v. Mondelēz International, Inc., No. 25-cv-2139 (N.D. Ill.), filed 2/28/2025.