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Red Bull False Ad Settlement: Energy Drink Maker to Pay $13 Million

By    |   Monday, 06 Oct 2014 08:40 PM

Energy drink maker Red Bull, accused of false advertising, has reached a settlement to pay more than $13 million in the class action case.

Under the settlement, potentially millions of consumers who bought at least one Red Bull in the past could receive a $10 cash reimbursement or $15 worth of Red Bull products, according to Law360.

If approved by the court, the Austrian-based company would have to deposit $6.5 million into a settlement fund within seven business days, according to BevNET.com.

"Red Bull settled the lawsuit to avoid the cost and distraction of litigation," the company said in a statement to BevNET. "However, Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability."

While the plaintiffs didn't believe the beverage would give them wings, the suit took issue with Red Bull's claims of heightened performance, concentration, and reaction speed. The claims are stressed through the company's marketing campaigns.

The suit cites articles by The New York Times, Nutrition Reviews, and the European Food Safety Authority Journal, which reported that energy drinks provide their boost through caffeine alone, not guarana or any other ingredient.

A 7 oz. cup of coffee has about 115 to 175 milligrams of caffeine, while a 12 oz. serving at Starbucks "would contain far more caffeine than a regular serving of Red Bull," according to the lawsuit. An 8.4 oz. Red Bull has 80 milligrams of caffeine.

"Even though there is a lack of genuine scientific support for a claim that Red Bull branded energy drinks provide any more benefit to a consumer than a cup of coffee, the Red Bull defendants persistently and pervasively market their product as a superior source of 'energy' worthy of a premium price over a cup of coffee or other sources of caffeine," the suit said. "Such deceptive conduct and practices mean that [Red Bull's] advertising and marketing is not just 'puffery,' but is instead deceptive and fraudulent and is therefore actionable."

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Energy drink maker Red Bull, accused of false advertising, has reached a settlement to pay more than $13 million in the class action case.
red bull, false, ad, settlement
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2014-40-06
Monday, 06 Oct 2014 08:40 PM
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