Red Bull Agrees to Pay $13 Million to Settle a False Advertising Lawsuit

red bull picture
© depositphotos.com/giromin
red bull picture
© depositphotos.com/giromin

Have you ever tried the Red Bull energy drink in the past 12 years, if yes then you can claim a $10 refund from the company. This after they lost a case involving a class action lawsuit filed by some customers led by New York resident Benjamin Careathers claiming that Red Bull misled them by including the catch phrase “Red Bull gives you wings” in their advertisement. The case was filed against the Austrian beverage company in a New York court. The defendant have lost the case and have agreed for a settlement by paying a humongous sum of  $13 million as compensation.

Red Bull’s outrageous advertising and promotional campaign left their customers believing that the drink was a superior product, that deserves the premium price and provides vitality and energy. Mr Benjamin has been drinking the product since 2002 when it was launched. Since the main ingredient is caffeine, the company cannot claim their drink to be any more stimulating than a normal cup of coffee.

The case became a one-sided affair as despite the absence of any hard evidence supporting that the drink provides extra benefit to the consumers, the company continued to market its product as a better source of energy which is worthy of the high price-tag. The suit also includes the fact that since the drink was launched in North America 12 years ago a whopping $2 billion has been spent on its marketing.

The Canadian division of the company continued to defend its marketing campaign saying that they agreed for the settlement only because of the high costs of litigating in the US and it applies only to its US customers. The company has even created a website where the users who want to be included in the settlement will have to fill-up a form. The payout won’t exceed beyond $13 million, so more the number of applications, the lesser the amount each will get.

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