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A federal judge has ruled that PepsiCo, Inc. (NASDAQ:PEP) can be reportedly sued for marketing its Gatorade protein bars as healthy despite having more sugar than protein and exceeding the sugar content of typical candy bars.
On Wednesday, U.S. District Judge Casey Pitts in San Jose, California, ruled that three self-identified fitness enthusiasts leading a proposed class action had plausibly claimed that PepsiCo’s marketing and labeling were deceptive, reported Reuters.
Not all protein bars offer the same nutritional benefits. The report noted that last September, PepsiCo was accused of violating federal and state consumer protection laws by promoting Gatorade bars with a misleading “health halo,” including claims that they “help muscles rebuild,” are “used by the pros,” and are “backed by science.”
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The lawsuit claims the bars are “fortified junk food,” containing 29 grams of sugar (28 grams added), surpassing the American Heart Association’s 25-gram daily limit for women, and only 20 grams of protein.
The plaintiffs argued that excessive added sugar is linked to obesity, diabetes, and heart disease, claiming they would not have purchased the bars or would have paid less if they had known their nutritional content. They are seeking unspecified damages.
Per the report, PepsiCo countered that the claims of deception are “implausible,” as the bars were not marketed as healthy or low in sugar, particularly for flavors like Chocolate Chip and Cookies and Cream.
According to Benzinga Pro, PEP stock has lost over 5% in the past year. Investors can gain exposure to the stock via iShares U.S. Consumer Staples ETF (NYSE:IYK) and First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG).
Price Action: PEP shares are trading lower by 0.86% to $172.22 at last check Thursday.
Photo by Rafapress via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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