Class Action Settlements: Fuze Beverage
Fuze is a popular soft drink manufactured by Fuze Beverage, a subsidiary of Coca-Cola since 2007. It was originally founded by Lance Collins of Englewood Cliffs, N.J., in 2000. The drink is a combination of teas and noncarbonated fruit drinks and is infused with certain vitamins. Coca-Cola’s acquisition of the company in 2007 was one of its largest purchases since it acquired Odwalla in 2001.
On October 8, 2008, a class action lawsuit entitled Ceballos v. Fuze Beverage, LLC, was filed against Fuze in Los Angeles. The suit alleged that Fuze Beverage misrepresented consumers with its claim that its Slenderize, Vitalize, Refresh and Tea drinks promoted appetite suppression, leading to weight loss. It also charged that Fuze misled consumers about the ingredients in its beverages and violated federal food-labeling laws. Specifically, Fuze had made claims that its beverages could help consumers avoid cancer, heart disease, colds and infections.
Fuze drinks are infused with various vitamins like vitamins A and B-3. Fuze had an oolong tea drink that it maintained could reduce the risk of contracting certain cancers and cardiovascular disease. Its Refresh drink contained vitamin B-3, which Fuze asserted was known to reduce cholesterol levels in the blood.
Public interest groups, such as the Center for Science in the Public Interest, disputed these claims and pointed out that the U.S. Food and Drug Administration had never approved these claims. They also pointed out that some Fuze beverages either contained crystalline fructose, which contributes to obesity, or had high amounts of sugar equivalent to those found in ordinary colas.
The suit was settled in April 2009 with Fuze providing $4.5 million into a common fund. Potential claimants were anyone who had purchased a Fuze Slenderize beverage between July 16, 2004, and April 6, 2009, or in New Jersey between July 16, 2002, and July 15, 2004. Those who claimed to have purchased this drink had to produce a proof of purchase (an original sales receipt that identified the Fuze drink) with the purchase date and price for up to 10 bottles. However, the settlement terms did provide a claim form for those who were unable to produce evidence of proof of service as it is doubtful that consumers ever retain sales receipts for soft drink purchases.
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