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Canada Dry to pay $200K court settlement after B.C. man questions ‘made from real ginger’ slogan

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A B.C. man won a class-action lawsuit against the makers of Canada Dry ginger ale. – Oct 30, 2020

A class-action lawsuit against the makers of Canada Dry ginger ale has been settled for $200,000.

A B.C. man alleged that the advertising slogan “Made from Real Ginger” was misleading as the product contained no ginger.

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Woman sues Canada Dry over ginger content in its ginger ale – Aug 1, 2018

Victor Cardoso claimed he bought the product because ginger had medicinal benefits.

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In September of last year, the plaintiff filed a notice of application “to concede that Canada Dry Ginger Ale contains small amounts of ginger derivatives,” according to the decision.

Court documents say Canada Dry Mott’s Inc. agreed to pay $200,000, and more than $18,000 in disbursements, but “expressly denies liability and is not required to change its product labelling or advertising for products marketed in Canada.”

Read more: Put down the pop: Why ginger ale isn’t the cure for upset stomachs

Around $100,000 of the settlement will cover legal costs even though lawyers spent more than $220,000 researching and litigating the case. The remainder of the settlement will go to the Law Foundation of British Columbia.

“I am concerned that an award whereby counsel receives more than the amount being paid… on behalf of their collective client class could be viewed adversely by the public,” Justice Karen Douglas wrote.

“The ultimate purpose of the class-action vehicle is to benefit the class, not their lawyers.”

Read more: Why is there a shortage of canned soda pop in Canada?

Cardoso and a plaintiff from Alberta both received $1,500 honourariums.

Ginger ale has long been considered a home remedy for an upset stomach, but dietitians say the high sugar content in ginger ale might actually make you feel worse — especially if you drink too much of it.

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A similar lawsuit south of the border led the makers of the soft drink in the U.S. to stop using the phrase “Made from Real Ginger” on package labels.
— With files from Laura Hensley