Thursday 24 July 2014

Energy Drink Claims: States Sue Makers of 5-hour Energy for Deceptive Marketing Practices

States Sue Makers of 5-hour Energy for Deceptive Marketing Practices
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Do you believe in these claims of "more energy, focus and alertness?

The attorneys general in Oregon, Vermont and Washington have sued the makers of 5-hour Energy, alleging deceptive claims following a 33-state investigation into the accuracy of the defendants’ advertising and marketing practices.

In a July 17 lawsuit filed in Multnomah Circuit Court against Living Essentials, LLC and Innovation Ventures, LLC, Oregon Attorney General Ellen Rosenblum claimed 5-hour Energy lacks adequate evidence to substantiate its advertising claims that its caffeine-laden product boosts energy and provides consumers with focus and alertness.
A similar complaint filed in Washington cited allegedly misleading claims that 5-hour Energy is safe for teenagers and produces “no sugar crash". In King County Superior Court, Washington State Attorney General Bob Ferguson is seeking a permanent injunction that would prohibit 5-hour Energy from engaging in deceptive marketing practices, as well as restitution for consumers, civil penalties of up to $2,000 per violation of the state Consumer Protection Act, and recovery of investigative and attorney fees.

“We believe the ‘energy’ provided by 5-hour Energy products is derived solely from caffeine, not from vitamins and amino acids as their ads claim," Ferguson said in a statement. “In addition, we believe the ‘energy blend’ does nothing and the ‘no sugar crash’ statement is misleading."

A flavored energy shot, 5-hour Energy is sold in 1.93-ounce containers. Oregon’s lawsuit estimated the product is sold at more than 100,000 locations in the United States.

More states intend to sue 5-hour Energy in the coming weeks, Ferguson’s office announced last week in a press release.

The defendants plan to mount a defense.

“When companies are being bullied by someone in a position of power, these companies roll over, pay the ransom, and move on. We’re not doing that," 5-hour Energy said in a statement. “The Attorneys General are grasping at straws, and we will fight to defend ourselves against civil intimidation. The suits allege that the only ingredient in 5-hour Energy that has any effect is the caffeine. If so, are the Attorneys General going to sue Starbucks for selling coffee?"

Five states, comprised of Maryland, Ohio, Tennessee, Vermont and Oregon, have led a steering committee as part of a 33-state investigation into 5-hour Energy's marketing practices, according to court papers filed last year by Assistant Attorney David Hart with the Oregon Department of Justice. Ohio, the lead state on the steering committee investigating 5-hour Energy, commenced the probe with the issuance of subpoenas on Nov. 19, 2012. Since that time, Living Essentials last year said it had been overwhelmed by duplicate requests for information from authorities.
An online government database links 5-hour Energy to more than 90 adverse events between Jan. 1, 2004 and Oct. 23, 2012. Thirteen outcomes are listed as death, with a number of other outcomes described as life-threatening.
Officials with the U.S. Food and Drug Administration (FDA) emphasize such reports don't constitute a finding that a product like 5-hour Energy was fully or partially responsible for a reported illness. Still, reports linking 5-hour Energy and similar caffeine-laden products like Monster Energy to death and serious illnesses have ignited scrutiny on Capitol Hill, led to a number of lawsuits and motivated authorities across the United States to investigate energy drinks.

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