💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

PepsiCo misleads buyers of Naked juice, lawsuit says

Published 10/04/2016, 01:15 PM
Updated 10/04/2016, 01:20 PM
© Reuters.  PepsiCo misleads buyers of Naked juice, lawsuit says
PEP
-

By Jonathan Stempel

(Reuters) - PepsiCo Inc (N:PEP) has been accused in a lawsuit of misleading shoppers into believing its Naked juices and smoothies primarily contain "high-value" ingredients such as kale, when the main ingredient is often cheaper, less nutritious apple juice.

According to a complaint filed on Tuesday in the Brooklyn, New York federal court, PepsiCo emblazons healthy fruits and vegetables on Naked labels, and touts how the drinks have "no sugar added," when they actually contain roughly as much sugar as a can of Pepsi.

PepsiCo did not immediately respond to requests for comment.

The lawsuit was filed by the Center for Science in the Public Interest, a Washington, D.C.-based nonprofit group, on behalf of three shoppers.

Dina Lipkind of Brooklyn, Lyle Takeshita of Los Angeles and Chad Fenwick of Chatsworth, California claim they overpaid for Naked drinks such as Kale Blazer and Green Machine.

The label for Kale Blazer, for example, promises a "royal roundtable of yum" from its blend of kale with "cucumber, spinach, celery and a pinch of ginger, the complaint said.

But according to the label, kale puree is only the second listed ingredient, between orange juice and apple juice, and a 15.2 ounce serving contains 34 grams of sugar.

Other Naked drinks contain as much as 61 grams of sugar, the complaint said. In contrast, a 12-ounce Pepsi contains 41 grams.

PepsiCo "deliberately cultivates" consumer misperceptions through its marketing of Naked drinks, the complaint said.

The lawsuit seeks class-action status on behalf of shoppers nationwide and in New York and California. It also seeks unspecified damages from Purchase, New York-based PepsiCo.

In 2013, PepsiCo agreed to stop calling Naked juices "all natural" as part of a $9 million settlement.

The case is Lipkind et al v. PepsiCo Inc, U.S. District Court, Eastern District of New York, No. 16-05506.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.