SOURCE: Red Bull

April 08, 2008 07:00 ET

Second Florida Bar Charged With "Passing Off"

Ft. Lauderdale-Based Dicey Riley's Follows Orlando's Roxy Night Club

SANTA MONICA, CA--(Marketwire - April 8, 2008) - Red Bull North America, Inc. and Red Bull GmbH Limited Liability Company (collectively, "Red Bull") have settled yet another lawsuit in Florida, alleging Ft. Lauderdale-based Dicey Riley's Bar and Restaurant ("Dicey Riley's") has been "passing off" generic energy drinks as Red Bull® and charging premium prices for the generic drinks. The lawsuit, filed in Florida federal court, alleged that customers who visited Dicey Riley's and requested a Red Bull® routinely received a substitute beverage without being notified of the substitution or given the opportunity to accept or reject the substitute product. This is the second Florida bar to settle a lawsuit alleging passing off of Red Bull® energy drinks. The first Florida bar to settle a passing off lawsuit with Red Bull was Orlando-based Roxy Night Club, just last month.

The terms of the settlement include a permanent injunction against Dicey Riley's and its employees that precludes them from "passing off" other beverages as Red Bull®, as well as a judgment against the owners and operators of Dicey Riley's in the amount of $75,000.

"This is not about money, it's about standing up for consumers who are being deceived and for our brand, which is being misrepresented," says Chad Peffer, vice president of sales, Red Bull North America, Inc. "We would prefer not to file lawsuits, but there are certain situations where we have exhausted all efforts to persuade the account to stop passing off, and we are left with no choice."

"We have carried Red Bull® exclusively for the past four years, and they are a great partner of ours," said Gene Beach, general manager of Tarpon Bend. "Other energy drink companies have come in here and tried to get us to switch to their brand, but we would never do that because 99% of our customers ask for Red Bull® specifically by name."

When consumers pay for a premium beverage, they have a right to expect that it will be given to them. Consumers are encouraged to "demand the can" of Red Bull® with their drink as proof that they are not being deceived. The best way to distinguish Red Bull® from alternative products is the packaging. Red Bull® is sold exclusively in its unique blue and silver can and is never shot out of a beverage dispenser gun.

If consumers see passing off taking place, they can visit www.redbullusa.com and select the "contact us" button on the company page, or send an email to consumer.information@us.redbull.com.

Contact Information