Canada Dry Ginger Ale Class Action Challenges ‘Real Ginger’ Label

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A California man says that without a trace of real ginger in it, Canada Dry Ginger Ale is falsely labeled.

Plaintiff Gegham Margaryan claims defendant Dr. Pepper Snapple Group Inc. intentionally labels the beverage in a way designed to deceive consumers into thinking they’re getting a product that contains real ginger.

Dr. Pepper Snapple Group has owned the Canada Dry brand since 2008 and is now the maker and marketer of Canada Dry Ginger Ale.

The problem, according to this mislabeling class action lawsuit, is not just the word “ginger” in the product’s name. Margaryan also takes issue with the phrase “Made from Real Ginger,” which appears on the label of some bottles of Canada Dry Ginger Ale.

He includes pictures of bottles of Canada Dry Ginger Ale that clearly show the words “Made from Real Ginger” on the front of the bottles.

He further accuses the defendant of actively concealing the alleged deception by adding cheaper flavorings that mimic the taste of real ginger – preventing consumers from catching on to the lack of real ginger in Canada Dry Ginger Ale.

The plaintiff points out that many consumers seek out real ginger for medicinal purposes, not just as food. He says ginger’s medicinal properties are attributable to the presence of molecular compounds known as gingerols and shogaols, both of which are naturally present in ginger root.

But independent testing of Canada Dry Ginger Ale revealed it contains no gingerols or shogaols – not even in trace amounts, Margaryan claims.

The result of the alleged deception is that consumers who purchase Canada Dry Ginger Ale do not get what they pay for, according to the plaintiff, causing them economic harm while the defendant is unjustly enriched.

Margaryan says he bought the product himself on April 24, 2017 from a Vons supermarket in Glendale, Calif. In choosing that product, he says he relied on the label representations which claimed the drink contained real ginger. Had he known otherwise, he says he would have paid significantly less for the product or would have opted instead for a competitor’s product that actually contained ginger.

Margaryan’s allegations are essentially the same as those raised by three other plaintiffs in a Canada Dry Ginger Ale class action lawsuit filed back in March. The three plaintiffs in that action also take issue with defendant’s video advertisements, which allegedly show bottles of Canada Dry Ginger Ale being pulled out of the ground as if they were ginger roots.

Margaryan seeks to represent a plaintiff Class including all persons in the U.S. who purchased or will purchase Canada Dry Ginger Ale. He also proposes two subclasses of California Class Members for purposes of bringing claims under California’s consumer protection laws.

He is asking the court for an injunction barring the defendant from selling Canada Dry Ginger Ale, from using the word “ginger” in the product’s name, and from using the phrase “Made from Real Ginger” in the product’s labeling. He also seeks an award of actual, consequential and statutory damages, restitution, pre-judgment interest, and reimbursement of court costs and attorney’s fees.

Margaryan’s attorney is Hovanes Margarian of The Margarian Law Firm.

The Canada Dry Ginger Ale Mislabeling Class Action Lawsuit is Gegham Margaryan v. Dr. Pepper Snapple Group Inc., Case No. 2:17-cv-05234, in the U.S. District Court for the Central District of California.