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Red Bull to pay $US13 million over alleged false advertising

Energy drink manufacturer Red Bull has agreed to pay $US13 million to settle a class action that was brought against it over alleged false advertising, specifically in reference to the claim “Red Bull gives you wings”.

The class action was spearheaded by US Red Bull customer Benjamin Careathers, who has been a loyal customer of the brand since 2002. Careathers alleged that the company’s marketing slogan, “Red Bull gives you wings” implied that consuming the beverage would lead to increased performance and concentration and was therefore misleading, SBS World News reports.

Careathers brought the class action suit before the US District Court for the Southern District of New York on 16 January 2013, and referred to published academic journals articles and reputable newspaper stories to back his claim that Red Bull energy drinks provide their boost through caffeine alone – not guarana or any other added ingredient.

Careathers said that through its marketing, Red Bull’s claimed to offer a superior source of energy that is worthy of a premium price over a standard cup of coffee despite a genuine lack of scientific evidence to support such claims.

As part of the proposed settlement, anyone living in the US who has purchased a Red Bull product from 1 January 2002, has a valid claim to receive either $US10 in cash or two free Red Bull products.

Red Bull has refuted the claims but decided to settle the dispute to “avoid the cost and distraction of litigation.”

“Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability,” the company wrote in a statement to Bevnet.

Red Bull has now decided to voluntarily update its marketing materials and product labeling in the US.

 

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