Red Bull to Pay Out $13 Million Settlement in False Advertising Case.
Red Bull will Pay $13 Million to Settle False Advertising Lawsuit.
Hoax or Fact:
Fact with some missing information.
These messages reported and shared heavily online say that the Austria-based energy drink company Red Bull GmbH will be paying out $13 Million to settle a false advertising lawsuit. The claim is a fact with some missing information.
On 16 January 2013, a class action law suit proposed in the U.S. District Court of the Southern District of New York represented by longtime Red Bull drinker Benjamin Careathers accused Red Bull North America, Inc. of false advertising -- that “Red Bull gives you wings,” and increases your performance, concentration and reaction speed, to name a few. The lawsuit also argued that Red Bull misleads consumers with superficial and deceptive advertising of their products on television, internet, social media and events, athlete endorsers and other marketing campaigns. Another similar class action lawsuit represented by David Wolf and Miguel Almaraz also questioned Red bull GmbH Company's claim that their energy drink "vitalizes body and mind."
Red Bull Settlement
In August 2014, the Red Bull company agreed to pay a settlement of more than $13 million to settle the two aforementioned false-advertising consumer class action lawsuits. If the proposed settlement is passed by the U.S District Court in New York, Red Bull has to pay $6.5 million into a settlement fund within a week. The company will be required to dole out to eligible consumers either a check for $10 or a voucher for $15 worth of Red Bull products. However, in an email statement sent to the beverage industry news source BevNET.com, Red Bull denies misleading consumers:
“Red Bull 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.”
How To Claim Your Refund
Any person who bought at least a single can of Red Bull in the United States between 1 Jan. 2002 and 3 Oct. 2014 and wants to be eligible for refund can claim the $10 check or $15 voucher for Red Bull items by visiting the settlement website EnergyDrinkSettlement.com and filling out an online claim form before 2 March 2015. No proof of purchase is necessary to file the form. However, note that some people are excluded from this settlement class as detailed here, and the final amount of refund will depend on the number of eligible claims and other legal expenses the Red Bull company is going to settle with the proposed thirteen million dollars, as explained here.
According to buzzfeed.com, a hearing will be held on 1 May 2015 to decide if the settlement will be approved, and if approved, the settlement payment will be distributed 150 days later (pending appeals). For more information on this class action lawsuit settlement involving Red Bull and its consumers, you can visit the FAQ section on the settlement website.