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Reading: Red Bull Settles $13 Million Class Action Lawsuit For False Advertising
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News

Red Bull Settles $13 Million Class Action Lawsuit For False Advertising

Published on: October 8, 2014 at 5:01 PM ET
Jonathan Franks
Written By Jonathan Franks
News Writer

Red Bull has settled a $13 million class action lawsuit and is required to issue refunds to their customers.

Based on the terms of the settlement, Red Bull has to pay anyone that purchased one of their beverages between January 1, 2002 and October 3, 2014. In reference to payment options, according to the official court documents outlined the lawsuit settlement, qualifying customers can choose to receive a $10 cash payment or free Red Bull products worth approximately $15.

The class action lawsuit against Red Bull was originally filed due to complaints of false advertising from Red Bull customer Benjamin Careathers.

Careathers complained that Red Bull advertised benefits such as increased performance, concentration and overall reaction speed without ever providing any scientific evidence to support those claims. The company’s slogan that “Red Bull gives you wings” was judged by Careathers as being misleading and inaccurate.

“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.”

As outlined in the conditions of the settlement, this in no way means that the court made a decision in favor of Careathers or Red Bull.

“There have been no decisions by the Court… nor has there been any trial. Instead, Plaintiffs and Defendant negotiated and ultimately agreed to this settlement after counsel for all parties extensively evaluated the facts and law relating to this case and… believe that the settlement is in the best interest of the Settlement Class Members.”

Even though the energy beverage company decided to settle this lawsuit, according to BuzzFeed , Red Bull released a statement shortly after the settlement was officially announced denying any wrongdoing or guilt in this regard.

“Red Bull settled the lawsuit to avoid the cost and distraction of litigation. However, Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability.”

There are four different methods currently available that will allow qualifying Red Bull customers to file a claim and receive their payment.

  1. Online at www.energydrinksettlement.com
  2. By email to the Class Action Settlement Administrator at [email protected]
  3. By fax to the Class Action Settlement Administrator at 844-553-1373, or
  4. By mail to the Class Action Settlement Administrator at Energy Drink Settlement, c/o GCG, P.O. Box 35123, Seattle, WA 98124-5123

Regardless of the method that is selected, the claim submission deadline is March 2, 2015.

It is also important to keep in mind that, while proof of purchase is not required in order to file a claim, official claim forms have to be signed by qualifying Red Bull customers under penalty of perjury.

[Image Credit: Kitchenette ]

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