Antitrust Law Daily Wrap Up, ADVERTISING—S.D. Fla.: Anheuser-Busch settles “German” beer misrepresentation claims, (Oct 23, 2015)

By Greg Hammond, J.D.

Beck’s beer drinkers and American brewing company Anheuser-Busch Companies, LLC (AB) have obtained final approval of a class action settlement, disposing of claims that AB misrepresented Beck’s as a “German” beer, imported from Germany, and brewed using German requirements, when Beck’s is actually brewed in St. Louis, Missouri (Marty v. Anheuser-Busch Companies, LLC, October 22, 2015, O’Sullivan, J.).

Consumers from Florida, New York, and California allegedly purchased Beck’s in reliance on representations contained on the product’s packaging and Beck’s history of being an imported beer from Germany. Specifically, the consumers alleged that AB made numerous misrepresentations about Beck’s that caused confusion, as they believed they were purchasing “German beer, imported from Germany, brewed using German requirements and with German ingredients,” when they were actually purchasing beer brewed in St. Louis, Missouri, with ingredients from the United States.

The consumers claimed that they purchased beer that had less value than what they paid and have suffered legally cognizable damages proximately caused by AB’s misconduct. They brought claims under the Florida Deceptive and Unfair Trade Practices Act, New York General Business Law, California’s Unfair Competition Law, and California’s Consumer Legal Remedies Act. The parties were subsequently ordered to mediate the consumers’ claims and have now moved for final approval of class action settlement.

According to the terms of the settlement, as set forth in the consumers’ motion to final approval, class members will be entitled to partial refunds for Beck’s beer, in varying amounts, based on whether the claims are supported by proof of purchase. Reimbursements for claims supported by proof of purchase are capped at $50.00 per settlement class household, while reimbursements for claims not supported by proof of purchase are capped at $12.00 per settlement class household.

In addition, the settlement provides injunctive relief, in which AB must include the phrase “Brewed in USA” or “Product of USA’ on Beck’s bottles, cans, consumer facing packages, and on the brand’s website.

The court granted final approval, certifying a settlement class consisting of all consumers who purchased Beck’s beer in the United States for personal, family, or household purposes and not for re-sale from May 1, 2011, through June 23, 2015. In addition, the court awarded class counsel $3.5 million in attorney fees and expenses, and awarded class representatives contribution awards of $5,000 each.

The case number is 1:13-cv-23656-JJO.

Attorneys: John Campbell (Campbell Law, LLC) for Francisco Rene Marty. Brandon R. Keel (Skadden, Arps, Slate, Meagher & Flom, LLP) and Stanley Howard Wakshlag (Kenny Nachwalter, P.A.) for Anheuser-Busch Companies, LLC.

Companies: Anheuser-Busch Companies, LLC

Cases: Advertising StateUnfairTradePractices FloridaNews