Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Consumer seeks approval of Coca Cola misleading juice label settlement, (Mar 3, 2016)

By Greg Hammond, J.D.

A consumer that purchased Coca Cola’s Minute Maid Enhanced Pomegranate Blueberry Flavored Blend of 5 Juices product is seeking preliminary approval of a settlement that would dispose of claims Coca Cola misrepresented the amount of pomegranate or blueberry juice that composed the product (Saeidian v. The Coca Cola Company, Case No. 09-cv-06309 SJO (JRPx)).

The consumer claimed that Coca Cola’s labeling, packaging, advertising, and marketing methods for the product were false and misleading because they created the impression that the product primarily contained pomegranate and blueberry juices, and that Coca Cola sought to capitalize on consumers’ desire for the healthful and nutritional benefits provided by pomegranate and blueberry juice, according to the consumer’s memorandum in support of the motion for preliminary approval. The product, however, purportedly contained very little pomegranate or blueberry juice and was composed of mostly “cheap filler juices,” like apple and grape juices. The consumer consequently alleged that she and other members of the class overpaid for the product because they did not get the high quality juices they believed they were purchasing.

Coca Cola settled the California Unfair Competition Law (UCL) and False Advertising Law (FAL) claims, agreeing to: (1) provide unlimited full cash refunds pertaining to class members’ purchases of the product, during the 90-day class period, granted class members can produce a proof of purchase; (2) provide 200,000 product replacement vouchers to class members that cannot produce a proof of purchase, on a first-come, first served basis and with a maximum recovery of two vouchers per class member; (3) pay for the costs of notice and settlement administration estimated not to exceed $400,000; (4) pay class counsel’s attorney fees and expenses, which will not exceed $700,000; and (5) pay an award of $5,000 to the class representative. In addition, Coca Cola has included a commitment that it is no longer selling the product and has no plans to reintroduce it, and will make a $300,000 donation in goods to a charitable organization.

The consumer seeks an order granting preliminary approval of the settlement and certification of a settlement class consisting of all persons who purchased Coca-Cola’s Minute Maid Enhanced Pomegranate Blueberry Flavored Blend of Five Juices in the United States between September 1, 2007, and the date of entry of the Preliminary Approval Order.

Attorneys: Zev B. Zysman (Law Offices of Zev B. Zysman APC), Jordan L. Lurie (Capstone Law APC), and Leigh A. Parker (Weisslaw LLP) for Niloofar Saeidian.

Companies: The Coca Cola Co.

News: Advertising CaliforniaNews