A federal appeals court issued a ruling on January 6, 2026 that invalidated three key loopholes in the USDA’s Bioengineered Food Disclosure Standard Act, a decision that directly benefits Natural Grocers and the broader natural‑foods market.
The court held that retailers and brands may use the widely recognized term “GMO” instead of being restricted to the USDA’s preferred “bioengineered” terminology. It also rejected the agency’s allowance for sole reliance on QR codes or text‑message disclosures, requiring clear, on‑package information that is accessible to all consumers. Finally, the ruling struck down the USDA’s exemption of highly processed ingredients—such as oils and sugars—derived from bioengineered crops, mandating that these ingredients be labeled even when the genetic modification is undetectable.
For Natural Grocers, the decision aligns the regulatory framework with the company’s long‑standing policy of prohibiting most GMO ingredients unless they are verified as non‑GMO or organic. The ruling removes a regulatory uncertainty that had previously forced the retailer to navigate ambiguous labeling rules, thereby strengthening its competitive positioning as a leader in food transparency and providing greater supply‑chain certainty for its suppliers.
The ruling signals a tightening of regulatory scrutiny on GMO disclosure that could prompt other natural‑foods retailers to accelerate compliance efforts. Consumer demand for transparent labeling has been steadily rising, and the court’s decision reinforces the market’s appetite for clear, on‑package information. The outcome may also influence future USDA rulemaking, potentially leading to a more uniform national standard that benefits companies with strict product standards.
Heather Isely, executive vice president of Natural Grocers, said the court “corrected the USDA’s flawed final rule and restored the right of retailers to use the term GMO, ensuring that consumers receive the clear, accurate information they deserve.” George Kimbrell, legal director of the Center for Food Safety, called the decision a “hard‑won victory” that will provide consumers with “clear and accurate GMO label information.”
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