Red Bull Receives Settlement From Nightclub Owner
Posted: Monday, May 12th, 2008 at 1:29 pm
A New York nightclub owner has come to a confidential settlement with drinks company Red Bull after he was found to be substituting the drink with a cheaper alternative in his club without informing his customers that he was doing so.
Red Bull has sued a number of bar and club owners for the same practice, and when the firm initially accused club owner Ronnie Davis he said that the lawsuit was frivolous. However, a judge has now approved a settlement that means Davis will have to inform customers if he is substitution the drink with another, and let them make the choice.
After the settlement was agreed Davis said: “I did not, at the time, realize that was I was doing was wrong. Now, since this lawsuit has come about, I realize that what I was doing was not a correct business practice and I have to instruct customers about what they’re getting for their money.”
Red Bull is a high energy drink aimed at the young adult market, and is often mixed with other drinks and cocktails or can be drunk alone. Davis had been found to be substituting Red Bull of the cheaper alternative called Mad Croc.
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