Shoppers who bought Kirkland Signature Hydration Electrolyte Drink Mix may be covered by a proposed class action alleging Costco labels the mix “sugar-free” even though its first ingredient is allulose, which the suit says is a sugar under federal rules. No class has been certified and there is nothing to file yet.
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Costco Wholesale Corporation has not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
What Is This About?
Costco Wholesale Corporation is facing a proposed class action over its Kirkland Signature Hydration Electrolyte Drink Mix, a powdered mix sold in single-serve sticks and marketed as “sugar-free.” The suit alleges the claim is false because the first ingredient in both flavors is allulose, a low-calorie sweetener that the complaint says is a sugar under federal food labeling rules.The case is Maldonado v. Costco Wholesale Corporation, No. 2:26-cv-03702, filed September 30, 2026 in the U.S. District Court for the Western District of Washington in Seattle, the district that covers Costco's Issaquah headquarters. The court's docket lists U.S. District Judge Grady J. Leupold and a jury demand by the plaintiff, an Illinois resident who, according to reporting on the complaint, bought the mix at a Costco warehouse in Chicago in September.
It is one of a growing number of suits over allulose in foods and drinks sold as “zero sugar” or “sugar free.” Costco has not responded in court, and the allegations are unproven.
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What the Complaint Alleges
According to reporting by KING 5 and MyNorthwest on the complaint, the words “SUGAR-FREE” appear on the outer box, on each individual stick and on Costco's product page. The variety pack holds 40 sticks, 20 strawberry watermelon and 20 lemon lime, and allulose is listed first in the ingredients of both.The Nutrition Facts panel lists 0 grams of total sugars and 0 grams of added sugars, with an asterisk next to allulose saying it “adds a dietarily insignificant amount of sugar.” The complaint argues that footnote does not cure the front-of-package claim. It does not state an exact allulose figure; it alleges each serving contains more than half a gram of sugar, based on allulose leading the ingredient list and on the listed carbohydrate content.
The complaint describes the labeling as “health-washing,” meaning a product presented as healthier than it is, and cites research linking allulose to gastrointestinal effects such as nausea, bloating, diarrhea and abdominal pain. The plaintiff says he relied on the “sugar-free” claim and would not have bought the mix, or would have paid less, had he known what was in it.
Why Allulose Is the Issue
Federal regulations define sugars as all free monosaccharides and disaccharides. Allulose is a monosaccharide, so the complaint alleges it is a sugar. Under 21 C.F.R. § 101.60(c)(1), a food may be labeled “sugar free” only if a serving contains less than 0.5 grams of sugars.The 0-gram figures on the panel are consistent with a 2020 FDA guidance document in which the agency said it would not object if manufacturers left allulose out of the Total Sugars and Added Sugars lines, because allulose has far fewer calories than table sugar and little effect on blood sugar. FDA guidance is not binding law, and that gap between the guidance and the regulation's text is what the allulose suits are built on.
On July 27, 2026, the U.S. Court of Appeals for the Seventh Circuit held in Franco v. Chobani, LLC that allulose is a sugar under the regulation and that the FDA guidance does not override it. That decision binds federal courts in Illinois, Indiana and Wisconsin. This case was filed in Washington, which sits in the Ninth Circuit, so Franco is persuasive there rather than binding. OCA's tracker of allulose “zero sugar” lawsuits lists the other cases filed since that ruling.
Claims and Proposed Classes
As reported, the complaint pleads three claims:• violation of the Illinois Consumer Fraud and Deceptive Business Practices Act;
• violation of the Washington Consumer Protection Act; and
• unjust enrichment.
It proposes a nationwide class of everyone in the United States who bought the products for personal use, and a separate subclass of Illinois purchasers. The complaint alleges the class has more than 100 members and that more than $5 million is at stake, the threshold for a class action in federal court under the Class Action Fairness Act. No class has been certified.
What the Lawsuit Seeks
The complaint asks for damages, restitution, attorneys' fees and costs, and a court order requiring Costco to stop labeling, marketing and selling the products with the challenged claims and to make additional disclosures. The $5 million figure is the pleaded amount in controversy, not a settlement fund or a sum anyone has been awarded.What Happens Next
The docket so far shows the complaint, an issued summons and attorney appearances. Costco has not yet answered or moved to dismiss. In other allulose cases, defendants have generally argued that the FDA guidance permits their labels, that federal law preempts the state-law claims, and that a shopper who sees 0 grams of sugar on the Nutrition Facts panel is not misled.There is no class, settlement, claim form or deadline. If the case is certified or settles, OCA will update this page.
Questions
What is the Costco Kirkland Hydration lawsuit about?
Maldonado v. Costco Wholesale Corporation, No. 2:26-cv-03702, is a proposed class action filed September 30, 2026 in the U.S. District Court for the Western District of Washington. It alleges that Kirkland Signature Hydration Electrolyte Drink Mix is sold as “sugar-free” even though allulose, which the suit says is a sugar under federal labeling rules, is the first ingredient in both flavors. Costco has not been found liable, and the allegations are unproven.
Which Kirkland product is named in the lawsuit?
Kirkland Signature Hydration Electrolyte Drink Mix, sold at Costco as a 40-stick variety pack with 20 strawberry watermelon and 20 lemon lime sticks. According to reporting on the complaint, the “sugar-free” claim appears on the outer box, on the individual sticks and on Costco's product page.
Can Costco shoppers get money from the Kirkland allulose lawsuit?
Not at this stage. The case is a complaint only: no class has been certified, there is no settlement, and there is no claim form or deadline. The complaint asks for damages and restitution for buyers, but any payment would depend on a settlement or a win at trial.
Why does the Nutrition Facts panel show 0 grams of sugar?
FDA guidance issued in 2020 says the agency will not object if manufacturers leave allulose out of the Total Sugars and Added Sugars lines, because it has far fewer calories than table sugar. The Kirkland label reportedly lists 0 grams of both, with an asterisk saying allulose adds a dietarily insignificant amount of sugar. The lawsuit argues the guidance does not change the regulatory definition of sugar, under which a monosaccharide like allulose counts.
Sources
• Maldonado v. Costco Wholesale Corporation, No. 2:26-cv-03702 (W.D. Wash.), docket via CourtListener• KING 5, “Costco sued over ‘sugar-free’ Kirkland drink mix containing a form of sugar” (October 1, 2026)
• MyNorthwest, “Costco sued over ‘sugar-free’ claims on Kirkland electrolyte drink mix”
• 21 C.F.R. § 101.60(c)(1) (“sugar free” claims) and § 101.9(c)(6)(ii) (definition of sugars)
