Court Finds Product’s Healthy Claims Potentially Misleading In Light of High Sugar Content

A class action was recently filed against the Coca-Cola Company alleging that advertising and labeling claims for its vitaminwater products were false and misleading inasmuch as the claims touted the purported benefits of vitaminwater and promoted the drinks as healthy without disclosing the amount of sugar in the product.  The complaint alleges that statements such as "vitamins + water = all you need" and "vitamins + water = what's in your hand" suggest that vitaminwater contains nothing but water and vitamins. In addition, the complaint alleges that flavor names such as "rescue" and "defense" and the description of the product as a "nutrient-enhanced water beverage" along with statements concerning how vitaminwater can "bring about a healthy state of being" or "contributes to an active lifestyle" inaccurately portrays vitaminwater as healthy when it in fact contains a significant amount of sugar.  

In a recent decision denying Coca-Cola's motion to dismiss allegations of misleading and deceptive business practices and false advertising, the court held that the fact that the actual sugar content of vitaminwater was stated on the nutrition panel did not preclude the possibility that a reasonable consumer could be mislead as to the contents of the product when the labeling contained narrative paragraphs about healthy lifestyles and practices and language implying that that vitaminwater contained only water and vitamins. The court dismissed Coca-Cola's argument that such claims made were mere "puffery," stating that the statements described the content of the product in a manner that the consumers could reasonably rely on when making their purchasing decisions.

TIP:  Advertisers should consider all characteristics of the product when determining whether a product can be advertised as healthy.