PepsiCo may be sued over health claims for Gatorade protein bars, judge says By Reuters

By Jonathan Stempel

(Reuters) – PepsiCo (NASDAQ: federal.

In a ruling Wednesday, U.S. District Judge Casey Pitts of San Jose, Calif., said three self-described fitness enthusiasts leading a proposed class action had plausibly argued that PepsiCo’s marketing and labeling were misleading.

Neither PepsiCo nor its lawyers immediately responded to requests for comment.

Not all protein bars are equal in nutritional benefits.

PepsiCo was accused last September of violating federal and state consumer protection laws by creating a “health halo” around Gatorade bars, including claims that it “helps muscles recover,” are “used by professionals” and “backed by science”.

According to the lawsuit, the bars are actually “fortified junk foods” with 29 grams of sugar, including 28 grams of added sugar — more than the American Heart Association’s recommended daily limit of 25 grams for women — and just 20 grams of proteins.

The plaintiffs said excess consumption of added sugar is linked to high rates of obesity, diabetes and cardiovascular disease.

They said they would not have bought the Gatorade bars or paid less if they had understood their nutritional value and are seeking unspecified damages.

PepsiCo called the scam claims “implausible” because it did not market the bars as healthy or low in sugar, particularly for flavors like Chocolate Chip and Cookies and Cream.

However, Pitts said reasonable consumers may be unable to easily interpret the sugar content on labels and be misled by PepsiCo’s “self-proclaimed science-backed claims.”

The judge also agreed that PepsiCo can make health and protein content claims under federal regulations.

He said, for example, that the US Food and Drug Administration does not consider sugar a “disqualifying ingredient” when making health claims.

Maia Kats, a lawyer for the plaintiffs, said they welcomed the decision and would continue to pursue their claims.

PepsiCo is headquartered in Purchase, New York. Its dozens of brands also include Fritos, Lay’s, Mountain Dew and Ocean Spray.

The case is McCausland et al v PepsiCo Inc, US District Court, Northern District of California, No. 23-04526.