Red Bull Gets Wings Clipped and Settles Claims over Alleged False Advertising

( [email protected] ) Oct 10, 2014 05:42 PM EDT
Red Bull Energy Drink

A famous energy drink maker has touted for nearly 20 years that its products will "give you wings." Now those wings have been clipped thanks to a settlement that will refund money and products back to customers.

Red Bull agreed to a $13 million settlement to settle a proposed class action lawsuit attacking the company for supposedly engaging in false advertising. According to BevNET, the energy drink company is offering customers who have purchased at least one can of its product the option of $10 cash reimbursement or $15 worth of Red Bull products.

"Red Bull settled the lawsuit to avoid the cost and distraction of litigation," Red Bull said in an email 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."

If the court accepts the proposed settlement in a hearing, which will take place in March 2015 according to Business Insider, Red Bull would have a week to pay $6.5 million into a settlement fund. While Red Bull has denied any wrongdoing, the company has since revised its marketing claims.

The lawsuit argued that its famous slogan was misleading customers and did not give people wings, including in the figurative sense. According to Business Insider, Red Bull claimed in its marketing that the drink can improve concentration and reaction speeds, but the lawsuit attacked those claims as false, citing the lack of scientific support to back them up.

"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 lawsuit said.

According to USA Today, the plaintiffs in the lawsuit also alleged that the company misrepresented the functionality and safety of the company's drinks in its marketing.

In order for consumers to receive a piece of the settlement, a claim form must be submitted. USA Today noted that it is not necessary for consumers to show proof of purchase in order to receive payment.

According to USA Today, there are four different methods to submit a claim. Consumers can send a claim by going line at (filed online no later than March 2, 2015) or addressing the Class Action Settlement Administrator no later than March 2, 2015 via email at [email protected], by fax at 844-553-1373, or by mail at Energy Drink Settlement, c/o GCG, P.O. Box 35123, Seattle, WA 98124-5123.

If the settlement is approved by the court, consumers who filed a claim can expect to receive either their cash reimbursements or products within 150 days.