The story of Red bull lawsuit amazes me on how a common man can make a big difference..
We all know Red bull is very famous drink sold by an Austrian company. Red Bull has the highest market share of any energy drink globally with 6.302 billion cans sold across the world. It is said that the famous slogan, “Red Bull gives you wings,” is the main reason for its huge profit across the globe.
It is understood that the ad was figurative but one man, Benjamin Careathers, took it literally. After ten years of drinking Red Bull, he filed a suit against the company for false advertising and said, that he “neither had wings nor any intellectual performance.” He alleged that the firm misled the consumers to earn millions of dollars and to rise above its competitors.
Red Bull, who did not want a trial that would cost it its reputation, settled the mattered out of court and offered a refund of $10 to any consumer in the United States who had purchased the drink since 2002. It also promised to amend its advertisements.
10 dollars might seem too less but when it comes to 1.4 million customers that had to file a claim through a website, the settlement costed Red Bull GmbH 13 million dollars, with 6.5 million going to a fund through which the refunds were to be processed. That’s huge money. Now you know why that ad doesn’t show up.