The Coca-Cola Co (KO) Faces Alleged Deceptive Marketing Lawsuit
The Coca-Cola Co (KO) now has more to combat than just waning consumer taste for sugary drinks.
Praxis Project, a non-profit group, filed a lawsuit in a California district court that claimed the company and trade organization the American Beverage Association participated in "alleged false and misleading marketing of sugar-sweetened beverages," reports Fortune.
The lawsuit names a slew of examples of such statements, according to a news release from the Center for Science in the Public Interest. These include an American Beverage Association statement saying "There is no unique link between soda consumption and obesity," and another saying "Simply put, it is wrong to say beverages cause disease."
Coke's advertising to children is also a part of the lawsuit. "Like the tobacco industry, Coca-Cola needs to replenish the ranks of its customers, and it tries to recruit them young," the filing says.
Coca-Cola and the American Beverage Association denied the lawsuit had merit.
"We take our consumers and their health very seriously and have been on a journey to become a more credible and helpful partner in helping consumers manage their sugar consumption," Coca-Cola added in a statement to Fortune.
Coca-Cola's history with health groups has raised eyebrows before, notes Fortune. A prior incident involved a New York Times piece calling out the company for paying scientists that emphasized exercise over cutting calories. Another was a paper from the American Journal of Preventative Medicine highlighting Coca-Cola and PepsiCo's (PEP) nearly 100 health organization sponsorships. The companies were also fighting public health bills aimed at limiting sugary soda consumption, according to the report.
"Coca-Cola executives have known for years that their products undermine health," Center for Science in the Public Interest executive director Michael F. Jacobson said in a statement about the lawsuit. "Nevertheless, for years they have mounted a multi-million-dollar effort to persuade consumers that their products are benign -- even healthful. We hope the end result of this litigation will be that consumers will be permanently protected from Big Soda's fraudulent marketing."
The beverage giant recently announced that company veteran James Quincey would be taking over for current CEO Muhtar Kent on May 1, though Kent will stay on as chairman of the board of directors. Quincey is specifically mentioned in the complaint for likening sugar-sweetened drinks to all calories, "dismissing their unique contribution to the obesity epidemic by asserting such beverages contribute only 2 percent of calories overall," notes the Center for Science in the Public Interest.
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