World News – CA – Canada Dry settles in court with man who questioned ‘real ginger’ in ginger ale


Canada Dry settled in court for $ 200,000 with a BC man who claimed the company falsely advertised its ginger content as having medicinal properties

The plaintiff, Victor Cardoso, filed a class action lawsuit on January 21, 2019, on behalf of all Canadians outside of Quebec, arguing that the Canada Dry label was misleading This came after Similar lawsuits were filed in the US Soon after, two similar cases arose in Quebec and Alberta

Cardoso alleged that marketing ginger ale as ‘made from real ginger’ was misleading because the product did not contain ginger, court documents say The argument was then shifted to ginger ale containing « negligible » amounts of ginger

« They buy real ginger, but what they do next is boil it in ethanol, which essentially destroys any nutritional or medicinal benefits, » Mark C Canofari, one of the attorneys for Broughton Law Corporation who represented Cardoso’s claim, told CTV News

Ginger is commonly used as an herbal remedy There is strong evidence that ginger can relieve nausea, as well as weaker evidence for other benefits, such as anti-inflammatory action

The owners of ginger ale, Canada Dry Mott’s, have produced documents showing that it was made with ginger derivatives. The fact that ginger ale contains a derivative caused a stir in the lawsuit, regardless or the amount actually present in a given can of Canada Dry ginger ale

After two years of effort and hundreds of thousands of dollars in legal fees, settlement will not even cover legal fees Consumers will not be compensated in any way and there is no indication that Canada Dry will change its advertising According to court documents, Canada Dry Mott’s Inc. “Expressly disclaims all liability and is not obligated to alter the labeling or advertising of products marketed in Canada »

The resolution applies to the lawsuit in Alberta and avoids further lawsuits with the same allegations of false advertising

Of the $ 200,000, approximately $ 100,000 will go towards legal fees, although Cardoso’s attorney spent over $ 220,000 to research and argue the case at $ 950 an hour The lawyers accepted the case on a contingency basis, meaning they could only pursue part of the settlement – around 30-40%

Cardoso and Alberta plaintiff Lionel Ravvin will receive a small honorarium of $ 1,500 to recognize their work in researching the case

The BC judge argued that courts should avoid thinking that only lawyers benefit from legal proceedings

« I am afraid that an indemnity under which lawyers receive more than the amount paid on behalf of their collective class of clients may be viewed as adverse by the public, ”Judge Karen Douglas wrote « The ultimate goal of the class action vehicle is to benefit the group, not its lawyers »

The remainder of the $ 200,000 will go to the BC Law Foundation, a nonprofit organization that works as the provision of legal aid and funding of law libraries

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Canada Dry, Ginger ale, British Columbia

News from the world – CA – Canada Dry takes to court with a man who questioned the ‘real ginger’ of ginger ale


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