The Atkins Nutritionals Company basically invented the term "net carbs". What exactly is that, consumers might ask?  Well, Atkins coined that phrase on 2001 to sidestep the FDA's then existing guidelines. The FDA has a broad definition for carbohydrates. It doesn't make a distinction between types of carbs, it simply defines them as what's left after subtracting fat, protein, water and ash from food.

The FDA hasn't endorsed the use of the term "net carbs" on food labels but it hasn't prevented companies from using it either.

There was a major surge of competing low-carb products several years ago. Kraft Foods, Unilever (who also sells the Slim-Fast brand) and others had introduced low-carb product lines. For example, in the first six months of 2004 alone, major food producers launched 1,865 reduced-carb foods and drinks, according to research by the Marketing Intelligence Service.

As the number of low-carb products grew, the food industry faced increased doubts about their nutrient content and labels. Many companies, including Atkins at one time, calculate a product's "net carbs" by subtracting grams of fiber and sugar alcohols from the total carbohydrate grams. This calculation allows food marketers to cook up starchy, sweet products such as brownies, pastries and candy, and call them "low carb". However, one thing the formula doesn't take into account is that sugar alcohols raise one's blood sugar levels.

Dr. Robert Atkins' low-carb diet bestselling books have sold more than 18 million copies since 1972. When his philosophy gained renewed popularity during the late 1990s, Atkins launched a line of diet bars and shakes. Then growth of the low-carb movement really took off after his death in 2003.