Judge Rules PepsiCo Can Be Sued Over Health Claims for Gatorade Bars

A judge has ruled that PepsiCo can face a lawsuit over alleged false health claims regarding its Gatorade protein bars. This decision permits consumers to challenge the company’s marketing practices in court, addressing concerns about the accuracy of the health benefits promoted for these products.

On August 15 (Reuters) - A federal judge has ruled that PepsiCo (PEP.O) can be sued for promoting its Gatorade protein bars as beneficial despite the fact that they contain more sugar than protein and more sugar than typical candy bars. U.S. District Judge Casey Pitts in San Jose, California, determined that a proposed class action led by three fitness enthusiasts had a valid claim that PepsiCo's marketing and labeling were misleading.

PepsiCo and its lawyers did not immediately comment on the ruling.

The lawsuit, filed last September, alleges that PepsiCo violated consumer protection laws by creating a misleading "health halo" around the Gatorade bars, which are marketed as aiding muscle recovery, used by professionals, and supported by science. The complaint argues that the bars, with 29 grams of sugar (28 grams added) and only 20 grams of protein, are essentially "fortified junk food," exceeding the American Heart Association's recommended daily limit for added sugar.

The plaintiffs claim that they would have avoided purchasing the bars or would have paid less had they known about their true nutritional value, and are seeking unspecified damages. PepsiCo argues that the claims of deception are unfounded since the bars were not marketed as healthy or low in sugar.

Judge Pitts noted that reasonable consumers might be misled by PepsiCo’s “science-backed” claims and may have difficulty interpreting the sugar content on the labels. He agreed that PepsiCo can make health and protein-content claims as long as they comply with federal regulations, noting that the FDA does not classify sugar as a disqualifying ingredient for health claims.

Lawyer Maia Kats, representing the plaintiffs, welcomed the decision and plans to continue pursuing the case. PepsiCo, headquartered in Purchase, New York, also owns brands such as Fritos, Lay's, Mountain Dew, and Ocean Spray. The case is McCausland et al v PepsiCo Inc, U.S. District Court, Northern District of California, No. 23-04526.

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Source: Reuters‍