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Gatorade Sued by California for Disparaging Water . . . Settles Quickly for $300K

Sports drink brand Gatorade recently settled a lawsuit that was brought against the company by California Attorney General Xavier Becerra. At the heart of the matter was a free, downloadable game that Becerra argued disparaged water and healthy nutritional choices.

Legal-Fees-PaidGatorade made a game called Bolt! that was available to the public for free download in 2012, 2013, and then for a short time in 2017 as well. Players used a likeness of Olympic track athlete Usain Bolt to race across cell phone and tablet screens. When Bolt encountered Gatorade on the track, his speed increased, but when he encountered water, his performance deteriorated. Allegedly, the game inspired players to maintain their “performance level high and avoid water.”

Becerra argued in his complaint that the game made it appear as if water was an unhealthy choice that most athletes avoid. Accordingly, playing the game would encourage people, particularly children, to choose sports drinks instead of water.

In a statement, Becerra said: “Making misleading statements is a violation of California law. But making misleading statements aimed at our children is beyond unlawful, it’s morally wrong and a betrayal of trust.”

The day after the complaint was filed, Gatorade reached a settlement deal with the state. They agreed to a settlement of $300,000, $120,000 of which is earmarked for the promotion of better nutrition and hydration choices for young people.

Still, Gatorade does not admit to any wrongdoing in connection with the settlement. Katie Vidaillet, spokeswoman for Gatorade, notes: “The mobile game, Bolt!, was designed to highlight the unique role and benefits of sports drinks in supporting athletic performance. We recognize the role water plays in overall health and wellness … .” Moreover, the company has agreed to work harder at meeting the responsible advertising standards set by parent company PepsiCo.

Becerra hopes that the lawsuit and settlement will put other companies on notice about false advertising. While creativity is wonderful for capturing the attention of consumers, it is best to guard against making false claims. Work with a California business attorney to ensure that you company doesn’t run afoul of the law.