PepsiCo Faces Lawsuit Over Gatorade Protein Bars’ Alleged Misleading Health Claims

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PepsiCo Inc. (PEP.O) is facing a legal challenge over the marketing of its Gatorade protein bars, which are advertised as beneficial for health despite containing more sugar than protein and even more sugar than some popular candy bars. A federal judge ruled on Wednesday that the company can be sued for allegedly deceptive marketing practices.

The ruling was issued by U.S. District Judge Casey Pitts in San Jose, California, who found that the allegations brought by three fitness enthusiasts leading a proposed class action were plausible. The plaintiffs claim that PepsiCo’s marketing and labeling of Gatorade protein bars create a misleading “health halo,” suggesting that the bars are beneficial for muscle recovery and supported by scientific research.

The lawsuit, filed in September, accuses PepsiCo of violating both federal and state consumer protection laws by promoting the Gatorade bars as a product that “helps muscles rebuild,” is “used by the pros,” and is “backed by science.” However, the plaintiffs argue that the bars are essentially “fortified junk food,” containing 29 grams of sugar—28 grams of which are added sugars—and only 20 grams of protein. This sugar content exceeds the American Heart Association’s recommended daily limit of 25 grams for women.

The plaintiffs assert that excessive sugar consumption is linked to a range of health issues, including obesity, diabetes, and cardiovascular disease. They claim that they either would not have purchased the Gatorade bars or would have paid less for them if they had known the true nutritional content. The lawsuit seeks unspecified damages from PepsiCo.

In response, PepsiCo argued that the deception claims were “implausible,” stating that it never marketed the bars as healthy or low in sugar, particularly for flavors like Chocolate Chip and Cookies and Cream. The company contends that it did not mislead consumers about the sugar content.

Judge Pitts, however, ruled that reasonable consumers might struggle to interpret the sugar content on the labels and could be misled by PepsiCo’s “self-proclaimed science-backed claims.” While the judge acknowledged that PepsiCo is allowed to make health and protein-related claims in line with federal regulations, he emphasized that consumers might still be deceived by the company’s marketing tactics. He also noted that the U.S. Food and Drug Administration (FDA) does not classify sugar as a “disqualifying ingredient” for making health claims.

Maia Kats, an attorney representing the plaintiffs, expressed satisfaction with the judge’s decision and confirmed that they would continue to pursue their claims against PepsiCo.

PepsiCo, headquartered in Purchase, New York, owns numerous well-known brands, including Fritos, Lay’s, Mountain Dew, and Ocean Spray. The case is titled *McCausland et al v. PepsiCo Inc.*, and is being heard in the U.S. District Court for the Northern District of California under case number 23-04526.

As the legal proceedings continue, the case highlights the growing scrutiny on food and beverage companies regarding their marketing practices and the nutritional content of their products. The outcome could have broader implications for how companies market their products, particularly those positioned as health-conscious choices.