Costco, Inno Foods Get ‘Keto’ Snack Deception Lawsuit Thrown Out

Costco Wholesale Corp. and Innofoods Inc. won dismissal of a proposed class suit alleging they deceptively market certain snacks as keto diet-friendly.

Carol Walcoff bought Keto Coconut Cluster and Dark Chocolate Keto Nuggets snacks as part of the keto diet after her doctor advised her to drastically reduce her carbohydrate intake. The keto diet involves restricting carbohydrates and sugar.

Walcoff sued in the US District Court for the Southern District of California, raising consumer protection claims under the laws of California and 40 other states. She sought to represent a California class and a nationwide class.

She alleged that the ...