Judge dismisses Coca-Cola class action over Topo Chico hard seltzers

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Update:

• A federal judge in New York has dismissed a class action lawsuit accusing Coca-Cola of deceptively labeling its Topo Chico hard seltzer beverages.
• The judge ruled a reasonable consumer would not be deceived into wrongly believing the Topo Chico products contain tequila. 
• The consumer behind the complaint argued Coca-Cola tricked customers into believing the Topo Chico beverages contained tequila by labeling them with the word “margarita,” and that labeling them with “hard” was further misleading. 
• The judge ruled labeling the Topo Chico products with the word “hard” was not deceiving, however, saying the word does not predominantly refer to distilled spirits, but rather simply denotes that a beverage contains alcohol.

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Coca-Cola Topo Chico class action overview:

• Who: A Topo Chico Margarita Hard Seltzer customer sued The Coca-Cola Co.
• Why: The plaintiff says consumers were deceived into thinking the product contained tequila when it does not.
• Where: The class action lawsuit was filed in a New York federal court.

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(Aug. 17, 2022)

Coca-Cola deceives consumers by making it seem as if its Topo Chico Margarita Hard Seltzer has tequila in it when it does not, a new class action lawsuit alleges. 

Kari Warren filed the class action lawsuit against The Coca-Cola Co. on Aug. 14 in a New York federal court, alleging violations of state and federal consumer laws. 

Warren says The Coca-Cola Co. makes and sells a product called “Margarita – Hard Seltzer” under the Topo Chico brand.

The marketing on the product includes “4.5% ALC/VOL,” “Margarita Hard Seltzer” and a yellow backdrop of agave plants, the source crop for tequila, the Coca-Cola class action states.

“The representations are misleading because the product does not contain tequila, absent from the ingredient list on the side panel of the packaging,” according to the lawsuit.

Coca-Cola class action claims margaritas defined by containing tequila

Warren says consumers expect to receive a cocktail containing tequila when they order a margarita as this ingredient defines what a margarita is.

“Merriam-Webster dictionary defines a ‘margarita’ as ‘a cocktail consisting of tequila, lime or lemon juice and an orange-flavored liqueur,’” the Coca-Cola class action says.

The front of the cans state “Naturally Flavored With Other Natural Flavors,” but this does not tell consumers the drinks are flavored beers that purport to taste like a margarita, the lawsuit states. 

Therefore, Coca-Cola sold more Topo Chico and at higher prices than it would have in the absence of the allegedly false labeling, resulting in additional profits at the expense of consumers, according to the Coca-Cola class action.

Warren wants to represent a New York class of Topo Chico Margarita Hard Seltzer consumers plus a Montana, New Mexico, Idaho, South Carolina, Utah, Mississippi and Alaska subclass.

She’s suing under state consumer laws and for breach of warranty, fraud and unjust enrichment and seeking certification of the class action, damages, fees, costs and a jury trial.

Companies that make hard seltzers have faced class actions in the past.

A class action lawsuit filed earlier this year alleges Molson Coors markets some of its Vizzy hard seltzers as containing antioxidants, deceiving customers into believing their health benefits outweigh the harms of consuming alcohol.

Did you think the Topo Chico margarita drink would contain tequila? Let us know in the comments. 

The plaintiff is represented by Spencer Sheehan of Sheehan & Associates PC.

The Coca-Cola Co. class action lawsuit is Kari Warren, et al. v. The Coca-Cola Co., Case No. 7:22-cv-06907, in the U.S. District Court for the Southern District of New York. 

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