Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Red Bull Purchaser Seeks to Pursue Nationwide Class Action for Deceptive Advertising of Premium-Priced Energy Drinks, (Jan 23, 2013)

By William Zale, J.D.

A purchaser of Red Bull energy drinks has brought a class action complaint asserting that Red Bull violates the New York deceptive practices statute and other states’ consumer protection laws by deceptively advertising its products as superior to less expensive caffeine-only products and inducing consumers to pay an unwarranted, substantial premium. The complaint in Careathers v. Red Bull GMBH was filed in the federal district court in New York City on January 16, 2013.

Red Bull allegedly touts scientific studies to bolster its claims that ingesting the product’s mixture of ingredients significantly improves a consumer’s physiological and mental performance beyond what a cup of coffee or caffeine pill would do. The purchaser alleges that there are no scientifically reliable studies to support Red Bull’s claims.

The purchaser seeks certification of a nationwide class of all persons who purchased Red Bull energy drinks within the applicable statutory limitations period, as well as a subclass of New York purchasers. The purchaser asserts that Red Bull violated the New York deceptive acts and practices statute and the consumer protection laws of other states, as well as claims for breach of express warranty and unjust enrichment.

Remedies sought include injunctive relief, disgorgement of ill-gotten gains, restitution, damages, and attorney’s fees.

The case is No. 13 CIV 369.

Attorneys: Benedict F. Morelli (Morelli Alters Ratner) for Benjamin Careathers.

Companies: Red Bull GMBH; Red Bull North America, Inc.; Red Bull Distribution Co., Inc.

News: Advertising StateUnfairTradePractices