Red Bull has just settled a major lawsuit over false advertising, and anyone who drank the drink at any time in the past 12 years is in line to share in the multi-million dollar payout. Unfortunately for most of our readers, it only applies to those Red Bull drinkers who drank the drink in the United States.
The energy drink has long advertised itself as one that could “give you wings”, with an advertising strategy based around this premise. It was a premise that, the plaintiff in this case argues, suggested the drink could offer benefits such as increased concentration and energy. A successful tagline undoubtedly, and one that had stood the test of time, but now it’s one that looks to be unable to hold up under legal scrutiny.
Benjamin Careathers has been drinking Red Bull since 2002, and he is the plaintiff representing the case. Careathers’ lawsuit argues that Red Bull’s branding line that “Red Bull gives you wings” – and its claims of increased performance, in terms of reaction speed, energy and concentration - is a lie.
The lawsuit argues that this impression – of a drink which can improve these various abilities – is perpetuated across the Red Bull brand, from its TV advertising to online and at live events. The spread of this message, and the association of Red Bull with high performance athletes etc., is the basis for the lawsuit.
“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,” the suit says.
The drinks giant has been caught out by two class action lawsuits arguing against its slogan, and decided to “settle the lawsuit to avoid the cost and distraction of litigation.”
The class action lawsuit covers anyone who bought a can of red bull in the United States between January 1, 2002, right up to October 3, 2013. And you don’t even need proof of purchase. Tell Red Bull you bought the drink and – so the settlement says – a payment is yours. And what do the aggrieved masses receive? A $10 cheque or $15 worth of Red Bull, no questions asked.
Red Bull deny their advertising has been misleading, with a statement from the company saying: “Red Bull maintains that its marketing and labelling have always been truthful and accurate, and denies any and all wrongdoing or liability.”
The proposed settlement needs to be approved by the U.S. District Court of New York. However several commentators have suggested that, if the court approves, then the entire situation will likely be a marketing coup for Red Bull.
The settlement is limited at a little over $13 million, far less than the cost of TV advertising at a major event such as the Superbowl.
There won’t be a final ruling on this until May 1, 2015 but anyone looking to claim can do so here and all of the details you need are right here.
