Red Bull Settles Class Action in False Advertising Suit

Red Bull settled a class action over the use of the trademarked slogan “Red Bull Gives You Wings.” Red Bull agreed to pay $13 million – meaning anyone who bought its drinks between January 1, 2002 and October 3, 2014 may be entitled to a small portion ($10 in cash or $15 in company products) of the settlement. The proposed settlement must be approved by the Southern District of New York, which will hold a hearing in March 2015. Customers asserted that the phrase “Red Bull Gives You Wings” misled them into believing the drink had the ability to increase performance and reaction speed – claims that were not backed by scientific support. According to the plaintiffs, the advertising went beyond puffery and was deceptive and fraudulent.

Red Bull has denied any wrongdoing, stating that it “settled the lawsuit to avoid the cost and distraction of litigation.” Red Bull has since changed its marketing strategy.

This is a good reminder to companies to carefully analyze slogans for implied meanings that may cause confusion to potential consumers.

Sources: http://www.washingtontimes.com/news/2014/oct/9/red-bull-settles-class-action-suit-over-false-adve/ http://www.businessinsider.com/red-bull-settles-false-advertising-lawsuit-for-13-million-2014-10

For more information on this topic, please visit our trademark litigation service page.

Klemchuk LLP is an Intellectual Property (IP), Technology, Internet, and Business law firm located in Dallas, TX.  The firm offers comprehensive legal services including litigation and enforcement of all forms of IP as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides a wide range of technology, Internet, e-commerce, and business services including business planning, formation, and financing, mergers and acquisitions, business litigation, data privacy, and domain name dispute resolution.  Additional information about the IP law firm and its IP law attorneys may be found at www.klemchuk.com.

Klemchuk LLP hosts Culture Counts, a blog devoted to the discussion of law firm culture and corporate core values with frequent topics about positive work environment, conscious capitalism, entrepreneurial management, positive workplace culture, workplace productivity, and corporate core values.