Red Bull customers are to receive only $3 or less in compensation because they did not automatically grow wings instead of the $10 refund that they were expecting after the company’s site crashed from having too many visitors.
The energy drink Red Bull GmbH had settled two class-action lawsuits this week wherein they agreed upon paying an amount of $13 million because their popular slogan isn’t true. This slogan supposedly goes, “Red Bull gives you wings.”
As what was originally reported, anyone who had purchased a drink from the duration of January 1, 2002 to October 3, 2014 would be eligible to receive either a $10 cash payment of $15 in Red Bull product. What’s more, this said refund could actually occur regardless of whether or not the applicant still has the receipt for as long as they applied online before March 2, 2015 rolls in.
The site, as reported by the Drum, was visited approximately 4.6 million time in the last 24 hours. Many of the claims they received are most likely fraudulent.
The applicants are then, most likely to be offered just $3 by the settlement due to the mass amount of claims.
Claimants are said to get the money in as soon as 150 days even though the amount does not account as much as what was originally promised.
The company made an agreement to pay its customers up to $13 million according to lawsuit but not $10 in cash, to anyone who had filed a claim by the deadline as the offer only applies to customers living in the United States.
A customer who had been drinking the product for years wrote in one of the lawsuits that they had experienced little to no increase in performance and concentration of speed at all.
The suits said in a statement that such deceptive conduct and practices mean that the energy drink company’s advertising and marketing strategies isn’t just mere ‘puffery’, but it is instead deceptive and fraudulent. The incident can therefore be given action.
The suits also added that even though there is a lack of genuine scientific support for the claim that said Red Bull’s branded energy drinks provide any more benefit than a cup of coffee to a consumer, the company’s defendants persists to market their product. That is because they consider it as a superior energy source worthy of a premium price over just a simple cup of coffee or any other sources of caffeine.
Red Bull insists their advertising was never even misleading in the first place, although the company has agreed to change their marketing campaign.
The settlement could be approved by May and payments shall be expected to be sent out within the 150 days of the final approval as the company settled this lawsuit to avoid the cost and distraction of litigation. The energy drink, however, said in a statement that it maintains the marketing and labelling that it is using has remained truthful and accurate and it also denies any of the all wrongdoing or liability. Reference: dailymail
