Federal Appeals Court Sides With Natural Grocers® in GMO Labeling Case

Major win for food transparency advocates

LAKEWOOD, Colo., Jan. 6, 2026 /PRNewswire/ -- 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, the nation's largest family-operated organic and natural grocery retailer, led the lawsuit to uphold consumers' right to clear, accurate and easily accessible information about their food.

The decision overturns three major 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 their next rulemaking.

WHAT COMES NEXT
This ruling means consumers will receive clearer, more transparent labeling. 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 simple: 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 ever-evolving list to screen the products it carries, so that only the best, highest-quality products end up on its shelves, in a customer's grocery cart, and on the table. 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 on-going modifications to this list.

GET INVOLVED
Natural Grocers' Advocacy Alerts help keep consumers informed about legislative and regulatory developments that impact access to health and wellness products. Sign up at advocacy.naturalgrocers.com/sign_in/.

• Learn more about Natural Grocers' product standards.
• View Natural Grocers' Things We Won't Carry and Why list.
• For media requests, please contact [email protected].

ABOUT NATURAL GROCERS BY VITAMIN COTTAGE
Founded in 1955, Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The grocery products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial flavors, preservatives or sweeteners (as defined by its standards), synthetic colors or partially hydrogenated or hydrogenated oils. The Company sells only USDA-certified organic produce and exclusively pasture-raised, non-confinement dairy products and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based Nutrition Education programs to help customers and Crew make informed health and nutrition choices. Natural Grocers is committed to its Five Founding Principles—including its "Commitment to Community" and "Commitment to Crew." In fiscal year 2025, the Company invested more than $16 million in incremental compensation and discretionary payments for Crew. Headquartered in Lakewood, CO, Natural Grocers has 168 stores in 21 states. Visit naturalgrocers.com for more information and store locations.

SOURCE Natural Grocers by Vitamin Cottage, Inc.