Two people have been convicted of conspiracy in charges related to a scheme to distribute counterfeit 5-Hour Energy drinks. United States v. Shayota, No. 15-0264 (N.D. Cal., verdict entered November 28, 2016). The couple, Joseph and Adriana Shayota, produced several million bottles of a drink manufactured under unsanitary conditions and labeled the drink with 5-Hour Energy's packaging. Before beginning that scheme, the couple reportedly bought 5-Hour Energy drinks intended for the Mexican market, repackaged them and sold them in the United States for a price well below the retail price. Six other defendants pleaded guilty to similar charges, and 5-Hour Energy maker Living Essentials won a $20-million civil judgment in March 2016. See Los Angeles Times, November 30, 2016. Issue 624
Tag Archives energy drinks
The Centers for Disease Control and Prevention (CDC) has released the latest statistics on sugar-sweetened beverage (SSB) consumption in 23 states and the District of Columbia, concluding that, in 2013, approximately 30 percent of surveyed adults reported drinking at least one SSB per day. Sohyun Park, et al., “Prevalence of Sugar-Sweetened Beverage Intake Among Adults—23 States and the District of Columbia, 2013,” Morbidity and Mortality Weekly Report, Feb. 26, 2016. Relying on data gathered via Behavioral Risk Factor Surveillance System (BRFSS) telephone survey, the study refined previous questionnaires to solicit information about the consumption of sweet tea and energy drinks in addition to regular soda and sweetened fruit beverages. The results evidently indicate that “at least once daily SSB intake was most common among persons aged 18–24 years (43.3%), men (34.1%), blacks (39.9%), persons who reported being unemployed (34.4%), and persons with less than a high school education (42.4%).” Across…
The European Food Safety Authority (EFSA) has published its final caffeine risk assessment, concluding that “single doses of caffeine up to 200 mg” and “habitual caffeine consumption up to 400 mg per day does not give rise to safety concerns for non-pregnant adults.” Following a two-month consultation, the EFSA Panel on Dietetic Products, Nutrition and Allergies (NDA Panel) issued a scientific opinion considering “possible interactions” between caffeine and energy drink constituents, alcohol, p-synephrine, and physical exercise. The data evidently indicated no safety concerns when non-pregnant adults consume up to 200 mg of caffeine (i) less than 2 hours before intense physical exercise, (ii) in combination with energy drink ingredients such as taurine or d-glucurono-γ-lactone at typical concentrations, or (iii) in combination with alcohol at doses up to 0.65 g/kg body weight (bw). “The single doses of caffeine considered to be of no concern for adults (3mg/kg bw per day) may…
A New York federal court has reportedly approved an agreement between Red Bull GmbH and a class of consumers, settling allegations that Red Bull falsely advertised its product as providing more benefit than coffee provides. Careathers v. Red Bull N. Am. Inc., No. 13-0369 (S.D.N.Y., order entered May 1, 2015); Wolf v. Red Bull GmbH, No. 13-8008 (S.D.N.Y., order entered May 1, 2015). The agreement allots $13 million to the 2 million claimants, of whom 60 percent will each receive $4.23 and 40 percent will each receive a four-pack of Red Bull energy drinks. The court cut the fees for plaintiffs’ counsel down to about $3.4 million, or about $1.4 million less than they requested; the attorney’s fees and class award were not linked, and the court apparently indicated that it would have preferred to lower the attorney’s fees amount to increase the total consumer amount to accommodate the large…
Two plaintiffs who alleged that Vital Pharmaceuticals Inc. conceals the unsafe nature of its Redline® Xtreme energy drink have settled with the company for the approximate purchase price of a single product plus interest. Mirabella v. Vital Pharm., Inc., No. 12-62086 (U.S. Dist. Ct., S.D. Fla., joint stipulation and notice of settlement filed March 16, 2015). According to a notice filed with the court, the company has agreed to pay each plaintiff the cost of one drink—$2.50 to one, $2.99 to the other—along with accrued interest within 10 days of receiving general releases from the plaintiffs. A Florida federal court refused to certify the plaintiffs’ proposed class on February 27, 2015. Additional details about that decision appear in Issue 557 of this Update. Issue 559
A Florida federal court has refused to certify a nationwide class in a case alleging that Vital Pharmaceuticals Inc. conceals the unsafe nature of its Redline® Xtreme energy drink. Mirabella v. Vital Pharm., Inc., No. 12-62086 (S.D. Fla., order entered February 27, 2015). Vital Pharmaceuticals argued that the class was unascertainable because it does not keep a master list of consumers, and customers rarely keep finished bottles that would help prove they belong in the class. The court agreed, finding that the energy drink “generally sold for less than $3.00” and customers were unlikely to retain receipts or other records of purchase; in addition, the company sells a variety of similarly branded products that may render consumers unable to determine whether they belong to the class because they might not remember which product they purchased. “Even Plaintiffs are unable to reliably recall or objectively prove how many bottles of the…
Researchers with the Yale School of Public Health have published a study claiming that “middle-school children who consume heavily sweetened energy drinks are 66% more likely to be at risk for hyperactivity and inattention symptoms.” Deborah Schwartz, et al., “Energy Drinks and Youth Self-Reported Hyperactivity/Inattention Symptoms,” Academic Pediatrics, February 2015. The study relied on data from more than 1,500 middle-school students who completed the hyperactivity/inattention subscale of the Strengths and Difficulties Questionnaire and self-reported their sugar-sweetened beverage consumption during the preceding 24 hours. In addition to concluding that the risk of hyperactivity/inattention increased with energy drink consumption, the study’s authors apparently found that the risk of hyperactivity/inattention “increased by 14% for each additional sweetened beverage consumed.” As one researcher elaborated in a February 9 press release, “Our results support the American Academy of Pediatrics recommendation that parents should limit consumption of sweetened beverages and that children should not consume any…
Red Bull GmbH has filed a notice of opposition to Old Ox Brewery’s federal trademark application, arguing that the brewery’s marks are likely to confuse consumers because both animals “fall within the same class of ‘bovine’ animals and are virtually indistinguishable to most consumers.” In re Application No. 86/269,626 and 86/269,577 (U.S. Pat. & Trademark Office, Trademark Trial & Appeal Board, notice of opposition filed January 28, 2015). Red Bull claims that the similarities between the marks would likely cause consumers to believe that the products are affiliated with each another. The Virginia brewery responded in an open letter on its website, calling the company a “Red Bully” that is “holding us hostage with a list of demands that, if agreed to, would severely limit our ability to use our brand. Demands like, never use the color red, silver or blue; never use red with any bovine term or image; and…
A California federal court has dismissed without leave to amend claims that the makers of 5-Hour Energy—Innovation Ventures LLC, Living Essentials LLC, Manoj Bhargava, and Bio Clinical Development Inc.—falsely advertised their product as boosting its users’ energy levels with B-vitamins and amino acids rather than caffeine. In re: 5-Hour Energy Mktg. & Sales Practices Litig., No. 13-2438 (C.D. Cal., order entered January 22, 2015). The plaintiffs argued that the 5-Hour Energy makers downplayed the caffeine content in favor of attributing the product’s energy source to vitamins and other ingredients, and they included descriptions of five commercials containing the allegedly misleading statements. The court found that they failed to show what statements actually misled them, and it was also unpersuaded by the argument that the plaintiffs were exposed to a common message and thus did not need to specify which statements they relied upon to their detriment, so it dismissed without…
Sens. Edward Markey (D-Mass.), Dick Durbin (D-Ill.) and Richard Blumenthal (D-Conn.) have released a report asserting that while 12 of 16 companies that responded to a series of questions from the lawmakers have made progress in reducing marketing and promotion activities targeting children younger than age 12 and children in K-12 school settings, they have failed to voluntarily eliminate such efforts geared toward teenagers (ages 13-18). “Despite energy drink makers’ claims of not marketing their products to teenagers, a quick glance at social media or a drop by at a local concert shows that those claims just aren’t based in fact,” Senator Durbin was quoted as saying. “The truth is that in the absence of federal regulation, energy drink companies are using effective marketing tactics to reach young people—and sadly it’s working. It is past time for this industry to heed the advice of public health experts across the country…
