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After making the news earlier this month for losing a lawsuit to famous hip hop artist Flo Rida, Celsius is back in the news - and it's not any better this time for the up and coming caffeine/energy drink company.
Directly from the class action settlement website:
A settlement has been reached against Celsius Holdings, Inc. (“Defendant”) alleging Defendant labels its products misleadingly, including by describing them as containing “No Preservatives” despite containing citric acid. Defendant denies the allegations and contends that it added citric acid to its products only to add flavor and not as a preservative. The Court did not rule in favor of either side. The parties agreed to the Settlement to avoid the expense and risks of the lawsuit.
With Court approval, the Settlement provides a Cash Award to Class Members that submit a valid and timely Claim Form. Class Members who previously purchased a can of Product during the Class Period may submit a Claim to receive One Dollar ($1.00) for each can of Product. Class Members who previously purchased Celsius On-The-Go or Flo Fusion powdered drinks, which typically are sold in packages of 14, may submit a Claim to receive $5.00 per package of 14. Class Members who submit approved Claims with receipts will be capped at a Cash Award of Two Hundred Fifty Dollars ($250.00) per household. Class Members who previously purchased a Product but who cannot produce a receipt may submit a Claim to receive up to Twenty Dollars ($20.00) per household.
Our Take
This case seems a bit easier to get a settlement from than your typical class action, since it's already been settled in court.
I went through the process on the class action site and it took about 10 minutes total to fill out my information, find receipts from my bulk Celsius orders on Amazon, and select my preferred payout method. I chose PayPal, but they also had Venmo and direct deposit as options.
I realize that not everyone orders on Amazon, and that most people who buy a can of Celsius here and there aren't keeping the receipt. So it may be tough to get compensation in that scenario.
As far as the lawsuit itself, which alleged that Celsius labeled its products misleadingly by describing them as containing "No Preservatives" despite containing citric acid, I'm not surprised. I feel like Celsius makes a lot of claims about the health benefits of their drinks that probably aren't regulated by the FDA.
But that doesn't affect my opinion of Celsius overall - I like the brand because they have a consistently delicious taste and ideal amount of caffeine for me. I could care less about the lofty health benefit claims.