A federal appeals court has ruled in favor of Natural Grocers in its challenge to the U.S. Department of Agriculture’s (USDA) National Bioengineered Food Disclosure Standard, finding flaws in the agency’s GMO labeling rules and remanding the matter back to USDA for further action.
The ruling from the U.S. Court of Appeals determined that USDA improperly exempted certain highly processed foods – including oils and sugars derived from bioengineered crops – from disclosure requirements.
The court also rejected provisions that allowed manufacturers to rely solely on electronic disclosures, such as QR codes or text messaging, concluding those methods may not provide sufficient access for all consumers.
The decision marks a key development in the long-running case brought by Natural Grocers, which argued that the final USDA rule failed to meet congressional intent for clear, on-package disclosure of bioengineered ingredients.
“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 Natural Grocers EVP Heather Isely. “We are pleased the court recognized the shortcomings of the final rule and mandated corrections.”
As a result of the ruling, USDA must revise its regulations in future rulemaking to address the deficiencies identified by the court. Natural Grocers shared that it will remain engaged in the regulatory process as the agency works to bring the disclosure standard into compliance with the decision.
The grocer has long advocated for transparent food labeling and maintains strict quality standards aimed at providing customers with clear information about the products they purchase.
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