SANTA MONICA, CA -- 04/30/08 --
Red Bull North America, Inc. ("Red Bull")
has won another lawsuit as part of its ongoing effort to protect consumers.
The court entered judgment against Wet, a Chicago-based nightclub, for
deliberately and willfully "passing off" generic energy drinks as Red Bull®
in violation of federal law. The lawsuit, filed in federal court, alleged
that customers who ordered a Red Bull® at Wet routinely received a
substitute beverage without being notified of the substitution or given the
opportunity to accept or reject the stand-in product.
The judgment includes a permanent injunction against Wet and its employees
that prohibits "passing off" other beverages as Red Bull®, as well as a
judgment against the owners and operators of Wet in the amount of
$679,827.48 which includes $102,837.48 to reimburse Red Bull for its
attorneys' fees and costs.
Wet is the fourth establishment in the past year that Red Bull successfully
pursued to stop "passing off." Red Bull obtained permanent injunctions
against and settled with Houston-based Tavern for $150,000, Fort
Lauderdale-based Dicey Riley's for $75,000 and Orlando-based Roxy Night
Club for an undisclosed amount.
"We are very proactive in our attempts to discuss passing-off issues and
solutions with bars. Our primary goal is to protect our brand and ensure
the customer clearly understands what they are receiving when they order a
Red Bull. We only use legal action as a last resort, when it is clear a
bar or restaurant cannot effectively adhere to the law," says Chad Peffer,
vice president of sales, Red Bull North America. "In the end, it's not an
effective practice to sue any of our potential customers, but certain
owners put us in a situation that is not good for either party...
especially considering the time and effort on our part and the financial
settlements on theirs."
When consumers pay for a premium beverage, they have a right to expect that
it will be given to them. Consumers are encouraged to "demand the can" of
Red Bull® with their drink as proof that they are not being deceived. The
best way to distinguish Red Bull® from alternative products is the
packaging. Red Bull® is sold exclusively in its unique blue and silver can
and is never shot out of a beverage dispenser gun.
"Red Bull pioneered the energy drink category and set the bar for premium
cocktails," says Matt Linder, president of Three Headed Productions, owner
and operator of several Chicago-based establishments, including LePassage,
Salud, Cans, Juniors and Evil Olive. "We only serve high-quality products
at our bars and give our consumers exactly what they want. So when a
customer orders a Red Bull® and Vodka, that's what we give them."
If consumers see passing off taking place, they can visit
www.redbullusa.com and select the "contact us" button on the company page,
or send an email to consumer.information@us.redbull.com.
MEDIA INFORMATION:
Patrice Radden
Red Bull Communications
(310) 460-5344
patrice.radden@us.redbull.com
Erin Mand
Publicis PR
(323) 866-6040
erin.mand@publicis-pr.com
