Over the weekend, it was released that Canada Dry would be settling a lawsuit in the United States over false advertisement claims. Those claims were due to the fact that since 2013, the slogan "made with real ginger" has appeared on the soft drink's bottles and cans as a part of a marketing tactic. Ultimately, the sales tactic landed the parent company, Keurig Dr. Pepper, in court.
The prosecution claimed that while there may be the presence of ginger in the drink, the amount is so minuscule that it has no impact on the taste or health benefits for the person drinking it. Instead of the taste coming from ginger and other "natural flavours" as the packaging infers, it comes from carbonated water, high fructose corn syrup, citric acid and preservatives.
The deception on Canada Dry's end had some serious impacts on their sales as they grew 9% after only 6 months of including "made with real ginger" and "100% natural flavours" onto their cans and bottles. Due to the success, the claims have remained on the packaging ever since.
In response to the lawsuit, Keurig Dr. Pepper decided to settle. Meaning that Americans who have bought the drink since 2013 would be entitled to a payout. The conditions of the settlement payments were that payouts would be limited to $5.20 per household if you didn't have proof of purchase. While if you did have a receipt, the limit would be $40 per household.
Since the lawsuit took place in America, only Americans would be able to cash in. But it seems that Quebec is giving it a go after seeing the success of the lawsuit in the States. The lawsuit was filed on January 14th in Quebec and echoes the violations outlined in the American lawsuit. Canadians are now seeking compensation as a result of false claims surrounding the company's use of ginger and natural flavours to generate sales.
America VS Canada Dry | Class-Action Lawsuit
The prosecution in Quebec is seeking compensation for those affected totalling up to $15 million.
Meaning that if they are successful, Quebec residents who have bought the drink since 2013 could be looking at a payout similar to what Americans are expected to receive. Though we'll have to wait a little while before we can see what materializes in court.
Source: LPC Avocats