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Issue Date: Vol. 54, No. 8, August 2014, Posted On: 8/7/2014

Red Bull Agrees To Pay $13M To Customers In Advertising Settlement

Emily Jed
TAGS: Red Bull settlement, Red Bull class-action, misleading advertising practices, energy drink lawsuit, vending

SANTA MONICA, CA -- Red Bull has agreed to refund $13 million to U.S. customers to settle a class-action lawsuit over alleged misleading advertising practices. The energy drink maker denied any wrongdoing, but agreed to pay $10 in cash or $15 in Red Bull products to any consumer in the U.S. who bought a Red Bull product since Jan. 1, 2002.

The suit was filed on behalf of Benjamin Careathers, David Wolf and Miguel Almaraz, who claim to be longtime Red Bull consumers. The plaintiffs allege that "the functional benefits of consuming Red Bull are not superior to the benefits from ingesting an equivalent amount of alternate sources of caffeine, and that consumers have been misled by Red Bull advertising to believe the drink is a superior source of energy beyond caffeine," the settlement states.

Red Bull said it 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," the company said in a statement.

Consumers need to submit a valid claim form to receive a cash refund or $15 in free products.

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