The manufacturer of Canada Dry ginger ale has accepted to pay over $200,000 to settle a class-action lawsuit filed by a man in B.C. who alleged he was seriously misled by marketing that suggested that the soda had medicinal benefits.
A B.C. Supreme Court decision on costs that was released recently reveals that Victor Cardoso claimed he purchased Canada Dry on the grounds that it was “made from real ginger” but the marketing was not true as it had none.
The decision also reveals that Cardoso conceded later that the soda had small unit of ginger derivatives but he persisted in alleging that the way the company represented its product were false.
The maker of the soda maker, Canada Dry Mott’s Inc., has denied the allegations and any liability.
Under the agreement of settlement, the company does not need to alter its labelling or advertising for products that are marketed in Canada.
In March, the settlement was approved for Canadians outside Quebec and the company was required to pay $200,000, which includes legal costs and $18,607 in other legal expenses.
The agreement therefore means that the remainder of the money will be remitted to class members in form of a donation to the B.C. Law Foundation. By implication, the two lead plaintiffs get $1,500 each.
Cardoso had insisted that Canada Dry advertised that its product was made from real ginger “in an effort to capitalize on the health benefits associated with the consumption of ginger.”
He said he bought the ginger ale consistently for his family under the belief that it was “natural.”
The class-action followed identical lawsuits in the United States, which witnessed the manufacturer drop the “made from real ginger” line from the products it sold there.