In the last decade, a variety of class-action suits have targeted large soda brands (most specifically Canada Dry and Schweppes) for allegedly deceiving consumers regarding their ginger ale offeringsfor instance, by labels or claims on advertising like “Made from Real Ginger” or “naturally flavored.” Plaintiffs have argued that such claims are deceiving because lab tests revealed only small (or none) trace amounts of ginger compounds however, defendants have maintained their statements on ingredients and deny any the allegations of wrongdoing. The lawsuits resulted in several multi-state suits, settlements, labels changes as well as a constant debate about transparency of food labels, advertising and the meaning of “natural” or “made from” claims actually mean.

What are the lawsuits about?

Plaintiffs in these lawsuits generally had two arguments:

1. false or deceitful advertisement. Labels or marketing statements, such as, “Made from Real Ginger” or “naturally flavored” — made consumers believe that the drink was containing a significant volume of ginger (and the health benefits that go along with it) however, tests in the lab claimed to show just small quantities.
2. Economic damage. Because the product was advertised as having “real ginger” or being natural and organic, consumers paid a higher cost or chose the product over others. Plaintiffs demanded refunds, corrections to advertising as well as other relief.

These claims were made as class actions that were putativein other words, the plaintiffs were seeking to represent all similar buyers in a group instead of filing a multitude of individual lawsuits.

key filings, decisions and settlements

• 2017-2019 – The first federal suit: Multiple federal complaints were filed in various areas claiming that Dr Pepper’s marketing practices were deceitful. Judges in certain cases permitted the claims to go beyond early appeals to dismiss (i.e. judges found plaintiffs could be able to prove that they had committed deceit).
• 2018-2020 – Settlements and label changes: Some suits resulted in settlements or changes to marketing. For instance there were settlements and corporate responses throughout the period from 2018 to 2020. In certain markets, companies changed their the packaging language. One settlement widely reported paid plaintiffs, and resulted in the elimination of some “made from real ginger” claims from some packaging. (Settlement amount reported by various areas of litigation varied from small amounts to large total settlements made by the plaintiffs’ companies.)
• 2024 – New suits filed over “naturally flavored” claims: More recent class-action suits were filed in the last few months (e.g. in the latter part of 2024) in which the plaintiffs claim that Schweppes along with Canada Dry products were marketed as “naturally flavored” when plaintiffs assert that they are based on artificial or artificial flavor substances. The latest lawsuits demonstrate that the legal issues are not over as consumer protection laws and advertising terms develop.

Since these issues were handled by multiple courts, and often resolved through settlement, the outcomes vary depending on the case. Some claims were dismissed, a few did not survive motion practice, while certain cases resulted from settlements or changes in marketing.

Legal issues that courts will consider

If a plaintiff brings fraudulent class actions regarding the labels of beverages or food The courts will typically look at:

• Deception-like possibility: Could a reasonable consumer be deceived by the advertisement or label? If so, it’s a good argument for the plaintiff. Many judges found that the “made from real ginger” claims to be plausible enough to be able to move forward.
• The evidence of the product’s formulation: Lab testing showing minimal amounts of ginger (or the ginger-active compound gingerol) helps plaintiffs’ argument. The defendants counter with lists of ingredients (e.g., “natural flavors”) and claim that the formulations are in compliance with the law on labeling.
• Economic damage: Plaintiffs must show that they have paid more or were impacted by the advertisement. Courts examine whether the claimed price is substantiated and measurable.
• The hurdles to class certification Even in the event that the claim is plausible, the plaintiffs must overcome the formal hurdles before they can be permitted to form a class, that is, proving common legal or factual concerns among the class members. Certain cases get past this stage, while some don’t.

Why is this important to both companies and consumers

• for consumers to consider: This lawsuit raises the awareness that claims on packaging (“made of,” “natural,” “contains real X”) do not necessarily mean that the product is a valid or health-related quantity of the ingredient named. If the claim is crucial to you be sure to check the ingredient list and the nutrition facts section; Keep receiptsto aid you in the event that you decide to join an action class.
• For food and beverages companies The cases above show that that marketing and labeling can result in substantial litigation risk. Even if the ingredient exists in trace quantities (or companies rely heavily on “natural flavors”), the advertising language could be challenged as fraudulent. Brands must coordinate marketing, ingredient disclosure and legal reviews to minimize the risk.

The practical consumer benefitsWhat to do if you purchased ginger ale

1. Look at the packaging right now. Look at current bottles/cans: several brands have changed or removed “made from real ginger” claims following the outcome of litigation. If packaging displays something you believe is misleading keep track of the date and save the item or photo.
2. Keep evidence for purchase. If you believe that you cheated due to misleading claims, make sure you keep receiptsThey are essential to prove class claims.
3. Watch registries for class-action. Sites like TopClassActions and ClassAction.org provide notices of new suits and deadlines for claim submissions when a settlement agreement is achieved.
4. Don’t believe that every advertisement claim is a violation of law. Many label statements are legal and rely on precise wording and technical conformity. Only the court (or settlement) is able to determine whether a label is liable.

FAQ

Do businesses admit their wrongdoing?
A: In a lot of settlements, manufacturers are not liable Settlements or changes to labels usually resolve disputes without admitting of guilt. Courts may allow claims to be heard, but sometimes they deny the claims – outcomes differ according to the particular case.

Q Is there a one large settlement amount that everybody was paid?
A: No one uniform figure is applicable to all litigationvarious cases have been settled at different rates (some small, others larger). Certain plaintiff firms release the total settlement amount in their advertising.

Q Do I have the right to continue attending an activity if I purchased ginger ale in the past?
A: It is contingent upon the date of filing and the limitation period. If a settlement is proposed the notice period and cutting-off times will be released in official notices of settlement and the websites of class members for deadlines.

The bottom line

The class-action lawsuit regarding ginger ale illustrates the ways that normal food or beverage marketing — including short claims such as “made from real ginger” or “naturally flavored” — could trigger consumer-protection lawsuits when consumers see a disconnect between the ingredients and marketing. These cases have led to changes to the label, settlements, and ongoing lawsuits; they’re an opportunity to remind businesses and consumers that even the simplest the words printed on a soda bottle may have serious economic and legal consequences.