Buzz
It's certainly wise to take advertisements with skepticism. But for some, the false promises and manipulative tactics are just too much to tolerate. Hopes are crushed, high expectations are disappointed, and legal actions are pursued.
Certain companies endure lengthy legal battles, ultimately paying millions in compensation to those they deceived. Despite their dishonesty, many continue to thrive and strongly reject any allegations of wrongdoing. However, it's tough to sell that nonsense to a disillusioned customer who was promised a slimmer waist or enhanced personal attributes.
10. Nutella
It's creamy, chocolaty, and irresistibly tasty. Nutella takes everyday foods and elevates them into something indulgent. However, the hazelnut spread faced backlash in 2012 for misleading its consumers with false claims.
The company’s advertisements promoted Nutella as a healthy breakfast choice for children, boasting various nutritional perks. This was in stark contrast to the product's actual label, which revealed that Nutella contains over 20 grams of sugar and 11 grams of fat per serving.
A mother from California filed a lawsuit against Nutella, claiming that she had been deceived by the brand and unknowingly fed her child the sugary spread, unaware of its unhealthy ingredients. Instead of checking the nutritional label, she trusted the company's marketing, a mistake that ultimately cost Nutella over $3 million.
Furthermore, the company was required to compensate consumers who had purchased Nutella jars between 2008 and 2012. In response, Nutella updated their advertising and now lists the sugar content on the front of the jar, aiming to be more transparent.
9. Hydroxycut
Who doesn’t want a magic pill that promises to fix our physical issues with just one simple dose? Hydroxycut, a weight loss supplement, was one such product, claiming to offer a quick, safe, and effortless way to shed those extra pounds.
Sadly, for many consumers, the reality was quite different. In the early 2000s, the company faced multiple lawsuits related to the health risks caused by ephedra, one of Hydroxycut’s key ingredients, which was eventually banned by the FDA in 2004. It was found that many users began experiencing seizure-like symptoms after taking the supplement.
The company’s legal troubles didn’t stop there. In 2009, more lawsuits surfaced regarding the severe health risks of using Hydroxycut. The FDA even issued a public warning, urging people to immediately stop using the product.
More than 20 reports were filed regarding serious health risks linked to the supplement, including jaundice, increased liver enzymes, and even a fatality from liver failure. In 2009, the FDA mandated a recall of all Hydroxycut products. Ultimately, the company settled for $25.3 million.
8. Activia
Most of us are familiar with the yogurt ads featuring Jamie Lee Curtis, with her salt-and-pepper hair, promoting Activia and its amazing effects on her digestive health. But what might be less known are the legal troubles this brand has faced.
In 2008, Dannon, the multinational corporation behind Activia, was accused of making misleading scientific claims about the product's benefits. The company’s ads used terms like “clinically” and “scientifically,” which eventually led to significant financial consequences.
Dannon was compelled to pay $35 million to consumers and revise its advertising. The financial blow was especially severe as the company had already spent over $100 million promoting the supposed health benefits of the product.
Additionally, Dannon increased the price of the “scientifically proven, healthy” probiotic yogurt by 30 percent. While the company ultimately settled, it maintained that it did so to avoid ongoing legal expenses, without admitting any wrongdoing.
7. Airborne
Airborne is a well-known herbal vitamin supplement that promised to protect users from cold symptoms and help them avoid flu bugs commonly found in places like classrooms, offices, and airplanes. The catch? The so-called “research” supporting these claims was actually just the word of the product’s creator—a second-grade teacher.
When the Airborne case was taken to court, researchers appointed by the court revealed that the tablets were simply a mix of vitamins, minerals, and herbs. After these findings were publicized by the media, Airborne adjusted its advertisements and reworded its packaging, changing the phrase to ‘immune-boosting’ instead of claiming to prevent illness.
The company marketed Airborne as a sickness preventative without conducting any legitimate scientific or medical studies. Instead, they hired two individuals to run one trial exclusively for the product. Ultimately, Airborne had to settle the lawsuit for over $23 million.
6. ExtenZe
The name says it all. ExtenZe, a male enhancement herbal supplement, promised to increase the size of men’s penises, focusing solely on enhancing this particular feature.
Unfortunately for its users, ExtenZe failed to deliver on its promises. The product could not alter the anatomy of its consumers, leading to the company facing a lawsuit.
The company was sued for false advertising and ordered to pay $6 million in fines. Jimmy Johnson, a former coach of the Dallas Cowboys and a celebrity endorser for the brand, became infamous for misleading customers about his own ‘enhanced’ private parts.
ExtenZe is still available for purchase today, although the company has dramatically toned down its performance claims. The male enhancement market remains highly lucrative, continuing to generate billions annually.
5. Classmates.com
While some people leave high school behind without a second thought, many others want to relive those nostalgic years and reconnect with old friends. This was the premise behind Classmates.com, a start-up aiming to help users find classmates from kindergarten through college.
Classmates.com faced several lawsuits over the years, with one of the most infamous involving the company’s manipulative tactic of preying on lonely subscribers, tricking them with false promises of seeing their profile views. In 2008, a class action lawsuit was filed accusing the site of luring people into paid subscriptions by falsely claiming that their former classmates were actively searching for them.
To reconnect with these long-lost friends, users had to pay $15 for a premium membership. Ultimately, Classmates.com agreed to settle the lawsuit by paying $9.5 million to users, although they denied any wrongdoing.
4. Red Bull
It’s deceptive to promise something that can’t possibly be delivered—like claiming that a drink will give you “wings” and allow you to “fly.” That’s what critics say Red Bull, the famous energy drink, did.
In 2014, Red Bull settled for $13 million in response to a lawsuit claiming their famous slogan, ‘give you wings,’ misled consumers. While no one took the flying part literally, the marketing strongly implied that drinking a Red Bull would boost energy, improve mental clarity, and enhance focus.
When Red Bull failed to provide clinical evidence supporting these lofty claims, customers grew furious and demanded compensation. As a result, the company was ordered to reimburse purchasers going back to 2002, with no proof of purchase required—just a promise of honesty.
3. Volkswagen
Ironically, while Volkswagen was promoting their ‘clean diesel’ cars, they were involved in some dirty deeds. To pass emissions tests, VW used illegal ‘defeat devices’ to cheat the system. Between 2008 and 2015, they sold over 550,000 cars falsely labeled as ‘clean diesel’—ranging from $28,000 to $125,000 for Audi models.
The affected vehicles led drivers to believe they were reducing carbon emissions, when in reality, these cars emitted 40 times the permissible level of nitrogen oxide. Both U.S. and European authorities launched criminal investigations into the scandal.
Although no exact figure has been finalized, Volkswagen has allocated around $18 billion to cover its legal expenses. Despite past legal issues related to misleading investors, the automaker appears to have learned little from its mistakes.
2. Skechers Shape-ups
If only footwear could get us fit by simply walking. Skechers tried to make this dream a reality with their ‘toning’ shoes—essentially, unstable platforms meant to make you balance while walking. The company claimed these shoes could tone your abs, tighten your glutes, help with weight loss, and strengthen muscles.
Skechers took their bold claims even further, stating the shoes could improve heart health, a dangerous exaggeration given heart disease is one of the leading causes of death in the U.S. The Federal Trade Commission quickly took issue with this.
Skechers also recruited high-profile celebrities like Brooke Burke and Kim Kardashian to promote these inflated claims. In one ad, Burke claimed the new way to burn calories and tone muscles was simply by tying up the Shape-ups shoelaces. Ultimately, the company was hit with a $40 million fine for their overhyped promises.
1. Hyundai And Kia
Fuel efficiency and low emissions are two key concerns for today's car buyers. When someone invests a significant amount in a new hybrid, they expect to receive the mileage they were promised.
For Hyundai and Kia, their misleading promises led to a hefty $100 million penalty. Both the U.S. government and the California Air Resources Board took action against the companies for advertising inflated fuel efficiency claims that were far above the actual results.
Hyundai was forced to pay $58.6 million of the settlement, while Kia covered the rest. The EPA also compelled the brands to forfeit greenhouse gas emission credits, worth about $200 million. Due to their false advertising on mileage, the companies were responsible for emitting 4.75 million extra metric tons of greenhouse gases into the atmosphere than originally estimated.
