Red Bull Settlement - The Austrian energy drink maker has agreed on Thursday to dole out over $13 million to customers in a class action lawsuit over false advertising.
In a complaint to the court, which was filed last year, plaintiffs say the company takes unfair advantage of its "customers by promising that, among other things, "Red Bull gives you wings" by providing a mixture of ingredients that, when ingested, significantly improve a customer's physiological and mental performance. Yet, Red Bull provides nothing superior for the consumer's physiological and mental performance that cannot be had from a simple cup of coffee or caffeine pill."
But in a statement to BevNET, Red Bull has denied these charges. The company notes that "its marketing and labeling have always been truthful and accurate." Nonetheless, the Red Bull settlement plan is expected to spare the company from "the cost and distraction of litigation."
According to the Red Bull settlement plan, the company will pay $10 in cash or supply Red Bull products worth $15 to any customer who bought its product since 2002.
It is unclear if that strategy has been successful. Reports indicate that since Red Bull settlement news made headlines, it has been making rounds on the internet. Millions of customers are believed to have registered their claims in the past two days.
According to Time.com, the settlement website crashed momentarily on Thursday after being flooded with visitors. It has since resumed to its normal state.
Experts say if more people than the company had estimated apply for claims, the amount given to each claimant will be reduced to ensure the $13 million is split evenly.
The Red Bull settlement is one of a series of clashes that this company has had with the public. Critics claim the company's product has the potential to bring about negative side effects. The sale of Red Bull was reportedly banned in France for over a decade due to health concerns over certain ingredients used in preparing the popular drink.
