Canada Dry Ginger Ale Class Action Lawsuit Settlement

Canada Dry Mott’s Inc. will pay more than $200,000 in a class action settlement after a B.C. man said he was misled into believing that Canada Dry ginger ale has the health benefits associated with ginger. 

The company however, denies any liability and will not have to change any of its marketing or labelling in Canada, according to the settlement agreement.

Plaintiff Misled by Canada Dry Claims of “Real Ginger”

Plaintiff Victor Cardoso filed the class action lawsuit against Canada Dry in 2019 after he claims he was misled to believe that Canada Dry ginger ale contains real ginger, and therefore had medicinal properties. 

Cardoso bought Canada Dry ginger ale for his family for years because the soda’s label says “Natural” and “Made from Real Ginger,” according to the Canada Dry class action lawsuit. 

Ginger has many great health benefits including nausea relief, but drinking Canada Dry ginger ale will reportedly not provide any of the health benefits.

Lawyers in the Canada Dry class action settlement say that the method Canada Dry uses to make its ginger ale prevents drinkers from receiving any of the health benefits of the root.

“They do buy actual ginger, but then what they do is they boil it in ethanol, and that essentially destroys any nutritional or medicinal benefits,” said one of the settlement lawyers, Mark C. Canofari.

Canofari added the ginger is turned into a concentrate and put into the soda, explaining “one drop fills 70 cans,” he said. “And a drop is .05 ml. So that’s how little, even of the concentrate, is actually in one drink,” according to CTV News.

The Canada Dry class action settlement followed two other false-advertising class action lawsuits filed in the United States, both of which also resulted in settlements. However, the U.S. class action lawsuits added an agreement that Canada Dry would not be able to use a label that reads, “Made from Real Ginger,” says CTV News.

Canada Dry Class Action Lawsuit Claims False Advertising 

There has been no evidence that Canada Dry ever made specific claims about its ginger ale being healthy or having medicinal benefits. But, Cardoso believes he was duped into false advertising because Canada Dry used people’s perceptions of ginger to attempt to make their ginger ale seem healthy.

Canada Dry has reportedly commented that they deny any attempts at false advertising or misleading their customers. 

In an additional misleading claim, Cardoso mentioned Canada Dry’s marketing campaign that used “Jack’s Ginger Farm.” Canada Dry used images of ginger root being freshly picked out of the ground, attached to bottles of ginger ale, says the Canada Dry settlement. Cardoso believes this interpretation added to misleading claims.

One challenge of the Canada Dry class action lawsuit was that although Cardoso felt misled, and Canada Dry was “trying to use the halo of health benefits associated with real Ginger” but Canada Dry never actually stated that the ginger ale had medical properties of real ginger.  

Canada Dry Settlement Cash Goes to Foundation

This kind of class action lawsuit was not easy to identify all of its Class Members, considering Canada Dry is sold in countless places in Canada. From obvious spots like restaurants and grocery stores to gas stations and vending machines, the representing lawyers thought it would be impossible to pay each Canada Dry drinker a significant amount.

So, the Canada Dry settlement amount (minus fees and costs) has been gifted to the Law Foundation of British Columbia, in a donation.

Canofari explained that B.C. Law Foundation is “a non-profit organization that does all sorts of good work,” reported CTV News.

Cardoso received a $1,500 honorarium.

Do you drink Canada Dry ginger ale? Were you aware that the ginger ale does not have the medicinal properties associated with ginger? Tell us your thoughts in the comments section below!

Cardoso and Class Members were represented by Mark C. Canofari and Gregg Rafter of Boughton Law Corporation.

The Canada Dry Class Action Settlement is Victor Cardoso v. Canada Dry Mott’s Inc., Case No. S190672, in the Supreme Court of British Columbia, Canada.

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