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Walmart hit with $5M lawsuit claiming its plant-based milks aren't actually all plants

A Florida class-action lawsuit argues Walmart's Bettergoods milk alternatives shouldn't be labeled 'plant-based' because they contain mineral, synthetic, and animal-adjacent additives standard across the industry.

Walmart hit with $5M lawsuit claiming its plant-based milks aren't actually all plants
Food & Drink

A Florida class-action lawsuit argues Walmart's Bettergoods milk alternatives shouldn't be labeled 'plant-based' because they contain mineral, synthetic, and animal-adjacent additives standard across the industry.

Walmart is being sued for calling its oat milk "plant-based" — even though every major brand in the category uses the same non-plant additives. The class-action lawsuit, filed in Florida federal court and reported by Green Queen, argues that the term "plant-based" on Walmart's private-label oat, almond, and soy cartons misleads shoppers because the products contain additives sourced from minerals, synthetic compounds, and, in some cases, animal-derived processes.

The conventional assumption, for most shoppers grabbing a carton of oat milk off the shelf, is that 'plant-based' describes the broad identity of the product: it's not cow's milk. The complaint takes a stricter view — arguing that every ingredient should, in fact, come from plants.

The plaintiff names three ingredients in particular: calcium carbonate, dipotassium phosphate, and vitamin A palmitate. According to the class-action complaint, calcium carbonate is an inorganic compound typically produced from limestone or quarried marble, dipotassium phosphate is a synthetic compound made through a reaction of potassium and phosphoric acid, and vitamin A palmitate is produced synthetically for plant-based foods, though it occurs naturally in liver, fish, and dairy.

According to the complaint, the lawsuit argues that consumers would not expect non-plant ingredients in products labeled as 'plant-based.' The lawsuit seeks damages, exclusive of taxes and costs.

The complaint also accuses Walmart of reinforcing the messaging with imagery of fruit, almonds, and other wholesome-looking plant foods on packaging, while never disclaiming the source of its fortifying agents. The complaint alleges that Walmart deceived consumers about the products' ingredients to gain market advantage and charge higher prices. One of the plaintiff's more literal claims is that some of these milk alternatives contain sea salt, which comes from ocean water rather than plants.

Here's the wrinkle: the additives Walmart is being sued over are standard across the category. Oatly's own health FAQ page discloses that its barista oat milk contains tricalcium phosphate, calcium carbonate, and dipotassium phosphate, and that in the US, its calcium is derived from limestone. The company also notes that dipotassium phosphate holds GRAS (Generally Recognized As Safe) status with the US FDA and is approved as an additive across numerous markets.

These stabilizers and fortifying agents serve real functional purposes. Calcium carbonate brings calcium levels in line with dairy milk. Dipotassium phosphate prevents the 'feathering' or curdling you'd otherwise get when pouring oat milk into hot coffee. Vitamin A palmitate and B12 close nutritional gaps that would otherwise exist between a fortified plant drink and cow's milk.

The case lands in a strange spot for the category. Plant-based milk companies have spent years defending the word 'milk' against pressure from the dairy lobby. Now they're being told 'plant-based' may be too loose as well. The product specifications haven't changed. The framing around them has. And as VegOut has explored before, many shoppers gravitate toward products that appear simpler and closer to whole food, even while rejecting hybrid dairy products that might deliver on taste.

Whether a Florida court finds Walmart's labeling deceptive or simply consistent with category norms will shape how every plant milk brand communicates with consumers going forward. A ruling in the plaintiff's favor could push major retailers and brands to rework their front-of-pack claims, add disclaimers about fortifying agents, or find new language for a category that has to fortify to compete nutritionally and market to compete emotionally — somehow holding both truths on a single carton. A ruling against the plaintiff reaffirms that 'plant-based' is a descriptor of a product's identity, not a forensic ingredient audit. Either way, for shoppers who care about what's in the carton, the more useful move is already available: flip it over and read the label.

 

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Jordan Cooper

Jordan Cooper is a food and culture writer based in Venice Beach, California. Before turning to writing full-time, he spent nearly two decades working in restaurants, first as a line cook, then front of house, eventually managing small independent venues around Los Angeles. That experience gave him an understanding of food culture that goes beyond recipes and trends, into the economics, labor, and community dynamics that shape what ends up on people’s plates.

At VegOut, Jordan covers food culture, nightlife, music, and the broader cultural forces influencing how and why people eat. His writing connects the dots between what is happening in kitchens and what is happening in neighborhoods, bringing a ground-level perspective that comes from years of working in the industry rather than observing it from the outside.

When he is not writing, Jordan can be found at live music shows, exploring LA’s sprawling food scene, or cooking elaborate meals for friends. He believes the best food writing should make you understand something about people, not just about ingredients.

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