Earlier this week a federal court decided that TTB’s approval for Bud Light Lime Lime-A-Rita provides a “safe harbor” to protect certain label elements. Largely on account of this safe harbor, the court dismissed the class action lawsuit. The plaintiff had contended that the reference to “light” on the Rita products was misleading because it leaves an impression that the flavored malt beverages are low in calories and carbohydrates.
The Cruz v. A-B decision is in stark contrast with the Tito’s decision of three months ago. In the vodka dispute, Tito tried to locate the same safe harbor, but got pushed back into the middle of a heavy storm.
There are many class action lawsuits filed against alcohol beverage companies during the past year. They include Templeton, Angel’s Envy, Tincup, Whistlepig, Jim Beam, Maker’s Mark, Bulleit and Breckenridge. In most if not all, the defendant brands have argued that the TTB approval should create a safe harbor. But so far, until the Lime-A-Rita case, no judge has agreed that the COLA should protect the brand.
The Lime-A-Rita case may be an outlier because, at least according to Judge Birotte, the plaintiffs did a horrendous job with the pleadings. Secondly, TTB has a fairly specific policy regarding “light” labeling, and it appears that A-B complied...
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