Canada Dry Is Being Forced To Pay Out Anyone Who Has Bought Their Ginger Ale Since 2013 Because Of This Lawsuit
Canada Dry responds with a settlement after being accused of false advertising.
This article was originally posted in January 2019.
Canada Dry has grown to be one of the most popular soft drinks to have originated from Canada after being created back in 1904 at a carbonated water plant in Toronto. Unfortunately, it seems the well-loved drink has found itself in hot water due to the claims on the can that many customers have gotten used to seeing attached to the brand. That claim being none other than the "made from real ginger" blurb that is found on all Canada Dry ginger ale products.
That tiny writing on the can landed the owners of the soft drink, Keurig Dr. Pepper in a U.S class action lawsuit. Ultimately due to research that found that the ginger content in the drinks was too low to have any health benefits or even have an impact on the taste of the drink. Resulting in American customers earning themselves a payout from the drink brand.
The real impact on the drink's taste actually comes from carbonated water, high fructose corn syrup, citric acid, and preservatives. The "natural flavours" the brand advertises are meant to point towards the small amount of ginger used. When in actuality the amount of ginger included is next to none. This deception had a serious impact on the drink's sales considering Keurig Dr. Pepper saw a 9% sales increase after only a half year of including the "made from real ginger" claim on their packaging.
Instead of battling it out in court to prove their claim on the can is fair, Keurig Dr. Pepper is instead deciding to settle. Meaning not only will Canada Dry have to drop the claim that their drink is "made from real ginger," but will also have to offer a payout. That payout will be directed to people who have bought Canada Dry ginger ale at any point since 2013. Which the company is trying to make past and current customers aware of in light of the final court approval date approaching in April.
America VS Canada Dry | Class-Action Lawsuit
When it comes to how much you'll be receiving, the settlement payments are being limited to $5.20 per household if you don't have proof of purchase. If you do happen to have a receipt or other proof of purchase, the limit stands at $40 per household.
Unfortunately for Canadians, it seems the offer is only applying to American residents as the settlement was a response to a U.S class action lawsuit, meaning the situation doesn't involve Canada. Though it will be interesting to see if the case prompts research in Canada and a possible future lawsuit here as well.
Source: National Post