Energy drink company Celsius is facing a federal lawsuit alleging it engaged in a "health-washing scheme" by making misleading claims about its products' benefits. The suit, filed in Washington, claims the company's marketing phrases, such as "accelerates metabolism" and "improves function," duped consumers into believing the drinks offered health and wellness advantages.
Annabelle Nielsen, the plaintiff, asserts she suffered economic losses because she would have opted for a less expensive product had she known the health claims were unsubstantiated. The lawsuit seeks class-action status.
"Plaintiff purchased the Healthwashed Energy Products on the reasonable but mistaken belief that the Healthwashed Energy Products have certain health and wellness benefits," the complaint states. "Healthwashing" is described in the suit as the use of vague and questionable claims like "organic" or "high protein," with healthy assertions made on the front of packaging and then qualified in smaller print on the back.
Nielsen pointed to a can of Celsius Astro Vibe flavor that allegedly featured claims of "accelerates metabolism" and "burns body fat," accompanied by graphics of running, biking, and meditating. The suit also notes that marketing highlights ingredients like ginger root and green tea extract.
However, according to the suit and Celsius's website, smaller print on the cans states, "Celsius alone does not produce weight loss in absence of a healthy diet and moderate exercise. So whether you walk the dog or work out the gym make Celsius part of your daily regimen."
The company also claims its products have "thermogenic" properties, referring to their heat-producing capabilities. Celsius drinks contain between 200 and 270 milligrams of caffeine per serving, comparable to nearly three cups of coffee.
Celsius CEO John Fieldly was quoted in the complaint as saying, "First, we’re better for you but don’t sacrifice flavor; second, Celsius delivers on more function with clinically proven fat-burning and metabolism acceleration and third, Celsius is all about fitness (it was born in gyms and health clubs), and with fitness being a megatrend, we have mass appeal." The lawsuit further alleges that Celsius published and funded studies on its drinks that were misleading. The company's website recommends consumers consult a doctor regarding the products' health impact and suggests limiting consumption to no more than two cans per day.
A Celsius spokesperson stated, "We stand firmly behind our peer-reviewed clinical studies and product claims, which have previously been approved by the Better Business Bureau’s National Advertising Division. Our products are clearly labeled as they have been for many years and go above and beyond FDA requirements."
In a related development, Texas Attorney General Ken Paxton launched an investigation in June into Celsius concerning the packaging and marketing of Alani Nu, one of its products. This product contains 200 milligrams of caffeine in a 12-ounce can and is reportedly marketed to teenagers. Celsius stated at the time that it would cooperate with the probe but disagreed with Paxton's characterization of the product.