Red Bull To Refund Customers Over False Claims
Dan Weisman | | Oct 09, 2014 10:16 PM EDT |
(Photo : REUTERS/LEONHARD FOEGER) Red Bull drink cans in a supermarket display.
In case energy drinkers didn't realize it already, contrary to Red Bull advertising, the caffeine-infused beverage doesn't really give them wings.
And now, Red Bull is going to pay for making that false claim following a consumer class action court settlement Thursday directing the company refunding $10 to each Red Bull drinker. Those filing claims can receive $15 in Red Bull products if they don't want the cash.
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The settlement is designed to close the books on two class-action lawsuits. Consumers alleged the company's marketing and labeling misled people about the safety of drinking the products and how the products helped maintain energy.
Red Bull announced the settlement in a statement saying it had agreed to the refunds to avoid "the cost and distraction of litigation."
While consumers of Red Bull Energy Drink and Red Bull Sugarfree who file the proper paperwork may get a $10 check, they will have to wait at least a year, and even then, may not see the full $10.
The U.S. District Court in the Southern District of New York wasn't scheduled to consider the settlement offer until next May. Even if the court approved the settlement, Red Bull had five months after approval to send out the checks or product coupons.
Customers buying Red Bull products from 2002 to Oct. 3, 2014 are eligible for the refund. However, the settlement amount is capped at $13 million so it's first come, first served. If more than 1.3 million ask for the refund, individual awards may be diminished.
Not taking any chances, customers visiting the company's web site overwhelmed it's capability causing the site to crash as soon as the settlement was disclosed. The site was back up late Thursday. The deadline for filing a claim is March 2, 2015. Customers can file through the Red Bull website, email, fax or by mail.
TagsRed Bull, false advertising, refunds, class action lawsuits, consumer lawsuits, Energy drinks, U.S. District Court in the Southern District of New York
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