A man who sued the maker of Canada Dry ginger ale, claiming the brand falsely implied its soda had health benefits, is now $200,000 richer.
The maker of Canada Dry ginger ale settled a class-action false-advertising lawsuit filed by British Columbia man Victor Cardoso, who claimed to have spent years buying the carbonated beverage for his family thinking it had medicinal benefits based on its label promoting it as “Made from Real Ginger” and “Natural,” CTV News reported.
Canada Dry Mott’s agreed to pay $200,000 plus $18,607 in disbursements, even though the company “expressly denies liability and is not required to change its product labeling or advertising for products marketed in Canada,” court documents say.
The company also agreed it would no longer make claims that its ginger ale is “Made from Real Ginger” in class-action lawsuits also filed in the U.S., according to CTV News.
Cardoso argued in the lawsuit that Canada Dry’s product labeling aimed to “capitalize” on consumer’s perception of ginger and its health benefits, despite Canada Dry making no direct health benefit claims about the ginger ale.
“They do buy actual ginger, but then what they do is they boil it in ethanol, and that essentially destroys any nutritional or medicinal benefits,” Mark C. Canofari, a lawyer who represented Cardoso’s claim, said in a statement, according to CTV News.
Source: Fox News