Federal Appeals Court Sides with Natural Grocers in GMO Labeling Case

LAKEWOOD, Colo. — A federal appeals court has ruled in favor of Natural Grocers, the Center for Food Safety (CFS) and other plaintiffs challenging U.S. Department of Agriculture (USDA) rules under the Bioengineered Food Disclosure Standard Act.

Natural Grocers, a family-operated organic and natural grocery retailer, said it led the lawsuit to uphold consumers' right to clear, accurate and easily accessible information about their food.

According to Natural Grocers, the decision overturns three loopholes that plaintiffs argued would have kept consumers in the dark:

1. GMO vs. Bioengineered: Retailers and brands may use the name "GMO," which consumers widely recognize. Previous USDA rules focused on the exclusive use of "bioengineered," a term that plaintiffs argued was confusing and infringed on free speech rights.
2. QR Codes Are Not Enough: The court rejected rules allowing companies to rely solely on QR codes or text messages for disclosure. Natural Grocers argued that not all consumers have smartphones or reliable internet access. The ruling requires companies to provide clear, on-package information accessible to everyone.
3. All Ingredients Must Be Labeled: The court found the USDA was wrong to exempt highly processed foods, such as oils and sugars, from labeling. Even if altered genes are undetectable in the final product, the ingredients still originate from bioengineered crops. The USDA must correct this in its next rulemaking.

What comes next?

This ruling means consumers will receive clearer, more transparent labeling, said Natural Grocers. The USDA must revise its rules to ensure disclosures are accurate and accessible in its next rulemaking.

"Congress never intended to require the use of specific terms, the sole use of QR codes, or the exclusion of ingredients made from highly processed GMO crops," said Heather Isely, executive vice president of Natural Grocers. "We are pleased the court recognized the shortcomings of the final rule and mandated corrections. Natural Grocers will remain actively engaged in the GMO regulatory process."

George Kimbrell, legal director of the Center for Food Safety, said, "This hard-won victory means consumers will eventually see the clear and accurate GMO label information they deserve. The USDA must now correct its rules and make label disclosures readily accessible across the board."

Natural Grocers' GMO Policy and Product Standards

Natural Grocers has advocated for GMO labeling since 2012 and led efforts to promote a labeling initiative in Colorado in 2014. The company prohibits most GMO ingredients in the grocery products it sells, including those produced using new genetic techniques such as gene-editing and cell culture.

Natural Grocers' philosophy is that food should come from real sources and undergo as few modifications as possible. Products with ingredients at high risk of being genetically modified must be organic or verified as non-GMO. If a company cannot provide confirmation, Natural Grocers will not carry the product.  

In 1990, the company created a dynamic list of the most problematic ingredients and an explanation of why it won't carry them: Things We Won't Carry and Why. Natural Grocers uses this evolving list to screen the products it carries. The company's quality standards experts keep up with the latest research and meet regularly to consider product issues and concerns and to review specific ingredients, resulting in ongoing modifications to the list.