The Coca-Cola Co (NYSE:KO) has settled a lawsuit filed against it for a misleading claim about its Vitaminwater.
The ruling on the case states that the company can no longer use the misleading claim, and it should also include the words, “added sugars” which should be located in two places on the label for the drink. The law suit against Coca Cola was filed by the Center for Science in the Public Interest (CSPI) together with two law firms in 2009. The suing parties claimed that the beverage company’s health benefits claims on the labels of the Vitaminwater product were misleading.
Some of the claims include “vitamins + water = all you need,” and “vitamins + water = what’s in your hand,” among other claims. The removal of the claims and their replacement with information such as the presence of sweeteners and other ingredients will allow the firm to comply with the requirements of the court. It will also make the firm more transparent about its products.
Transparency is currently one of the most important factors especially in the beverage industry because customers have become more conscious about what they are consuming and many of them check the labels before consuming. Jeff Cronin stated that the settlement is good news for the consumers. Mr. Cronin is the communications director for the Center for Science in the Public Interest. He also stated that sugary drinks are often linked to medical conditions such as heart disease, weight gain, and diabetes.
The amount of sugar in 20 –ounce of Vitaminwater is between 29 and 31 grams and the maximum daily sugar intake recommended for adult men is 37.5 grams while adult women have a maximum recommendation of 25 grams. One of the spokespersons from Coca-cola stated that the firm was happy to settle on an agreeable solution. The representative also stated that the company is confident that continuing the legal battle was senseless based on the firm’s legal position.