They can lable them as 1g effective or net carb, but they have to list the full amount of carbs. Some one sued the Atkins company for mislabling because they only put 1-2 carbs on thier bars.

If your happy with your weight loss, then I wouldn't worry on that end. Do I think having chocolate everyday is bad for health weather it is LC or not? Yes. It also inforces poor eating habits.