Dive Brief:
- Celsius Holdings is facing a class action lawsuit that claims the energy drink company misled consumers about health claims on its label.
- The complaint accuses Celsius of “healthwashing” over the drink's claims that it “accelerates metabolism” and “burns body fat.” The lawsuit takes issue with Celsius' internal health studies, saying they were funded by the company and misleading.
- Celsius said in a statement to Food Dive that it stands by its peer-reviewed studies and product claims, which it said in a statement were reviewed by the Better Business Bureau’s National Advertising Division.
Dive Insight:
Health claims are a key target in food and beverage litigation, especially as wellness and ingredients continue to be top priority for consumers and drive purchasing power. Earlier this year, Chobani, Liquid Death and David Protein faced class action complaints over labeling.
Celsius has faced similar allegations over its health claims before. In 2011, a consumer in California sued claiming he did not burn calories as advertised, though a judge dismissed the complaint.
Attorneys accuse Celsius of working to court consumers who seek fitness and wellness products, as these shoppers are more likely to pay premium prices based on the claims. The lawsuit’s authors are urging Celsius to stop using the claims, as well as cover monetary damages and attorneys fees.
“Our products are clearly labeled, as they have been for many years, and go above and beyond FDA requirements,” a Celsius spokesperson wrote in an email.
The complaint against Celsius comes as functional energy drinks and consumer demand for healthy beverages are both on the rise, which could prime more shoppers to buy products based on such claims.
As more consumers turn to functional foods and beverages, some brands have invested heavily in research to back up those assertions and shield themselves from liability. Celsius has put forward studies on its drink's thermogenic properties, while prebiotic soda brand Olipop is investing to gauge the beverage's impact on gut health.
However, these internal studies can also be open to scrutiny. The lawsuit against Celsius claims the research says there is no evidence that drinking the beverage will produce a “meaningful” fat loss without changes to diet and exercise.
Reasonable consumers, reading the front of the label, would understand that statement to promise increased metabolism and body fat burned solely by virtue of drinking [Celsius]," the lawsuit said.
The lawsuit was filed on Oct. 28 in the U.S. District Court for the Northern District of Illinois. The complaint centers on Celsius’ canned energy drinks as well as its electrolyte powders. A similar complaint against Celsius was filed in Washington Western District Court on Oct. 26.
