Canada Dry Faces Three Lawsuits Over False Advertising—Here’s What You Need to Know in 2025
Canada Dry is fighting three separate class action lawsuits claiming the company lied to customers about what’s actually in their ginger ale. Two new cases filed in 2024 and 2025 say Canada Dry uses artificial ingredients without telling buyers. A third lawsuit claims the “Canada Dry” name tricks people into thinking the drinks are made in Canada when they’re actually produced in the United States.
These aren’t Canada Dry’s first legal problems. The company already paid out $11.2 million in 2019 to settle claims their ginger ale didn’t contain real ginger despite what the label said.
What’s Happening Right Now
Three different lawsuits are going after Canada Dry:
The 2024 California case says Canada Dry and Schweppes ginger ales are labeled “naturally flavored” but actually contain artificial ingredients. Filed October 29, 2024.
The 2025 New York case claims the “Canada Dry” brand name misleads consumers into thinking the drinks are made in Canada. Filed August 29, 2025.
The 2019 settlement case (closed) involved claims the ginger ale doesn’t have real ginger. Settled for $11.2 million.
None of the new cases have settled yet. You can’t file claims right now. Both lawsuits are still in early stages.
The 2024 Artificial Flavoring Lawsuit
California resident Lillian Elliot filed this lawsuit against Keurig Dr Pepper Inc. in federal court.
What she’s claiming: Canada Dry and Schweppes bottles say “naturally flavored” or “natural ginger flavor” on the label. But the drinks also contain artificial flavors that aren’t mentioned on the front of the package.
The lawsuit says the ginger ales contain synthetic dl-malic acid that makes them taste like ginger without using actual ginger. Federal rules say if a product has artificial flavors, the label must clearly state that fact.
Elliot argues she and other customers paid more money because they thought they were buying all-natural drinks. Instead, they got products with artificial ingredients the company didn’t disclose upfront.
Current status: The case is filed in the U.S. District Court for the Eastern District of California (Case No. 2:24-cv-02966). No settlement exists. The company hasn’t responded publicly to these claims yet.
Who might be affected: Anyone in the United States who bought Canada Dry or Schweppes ginger ale labeled as “naturally flavored” since October 2024.
The 2025 “Made in Canada” Lawsuit
New York resident Karin Piotroski filed this lawsuit against Dr Pepper/Seven Up Inc. in federal court.
What she’s claiming: The “Canada Dry” brand name makes customers think the drinks are produced in Canada and imported to the U.S. In reality, Canada Dry beverages are manufactured in the United States.
The lawsuit argues people are willing to pay more for products connected to specific places. When buyers see “Canada Dry” on the label, they assume it comes from Canada. The company never tells them otherwise.
Piotroski says this creates “consumer deception and confusion.” She wants the company to pay damages and change how they market their products.
Current status: Filed in the U.S. District Court for the Eastern District of New York (Case No. 2:25-cv-04818). The case just started. No settlement negotiations have begun.
Who might be affected: Anyone in New York who bought Canada Dry products since August 29, 2022.
The 2019 “Real Ginger” Settlement (Closed)
This is the big settlement everyone talks about. It’s completely finished. You can’t file new claims.
What happened: Two lawsuits claimed Canada Dry’s “Made from Real Ginger” label was misleading. Lab tests allegedly showed the ginger ale contained less than 2 parts per million of ginger flavoring extract.
Customers said they paid premium prices thinking ginger ale would help their upset stomachs. Instead, they got carbonated water, high fructose corn syrup, citric acid, preservatives, and chemical flavoring.
The settlement: Keurig Dr Pepper agreed to pay $11.2 million without admitting they did anything wrong. The court approved the settlement April 10, 2019.
Who qualified: U.S. customers who bought Canada Dry Ginger Ale between January 1, 2013 and December 19, 2018. California residents had slightly different dates (December 28, 2012 to June 26, 2018).
What people got paid:
- Tier 1: 40¢ per can for up to 13 cans ($5.20 maximum per household) without receipts
- Tier 2: 40¢ per can for up to 100 cans ($40 maximum per household) with proof of purchase
Payments went out starting July 5, 2019. Some people got up to $22.40 depending on how many claims were filed.
Claim deadline: March 2019. This settlement is closed. No new claims accepted.
What About Canadian Consumers?
Quebec had its own settlement. A separate $650,000 class action settled in Quebec for people who bought Canada Dry Ginger Ale between January 14, 2016 and November 11, 2020.
Quebec residents who bought five or more Canada Dry ginger ales during that time could claim up to $7.50. No receipts required.
That settlement is also closed. The claim deadline was July 16, 2021. You can’t file anymore.
The new 2024 and 2025 U.S. lawsuits don’t affect Canadian consumers yet. If you’re in Canada and bought Canada Dry, watch for news about whether similar cases might be filed in Canadian courts.
Can You Join These Lawsuits?
Not yet. Neither of the active cases (2024 California, 2025 New York) has reached settlement stage.
Here’s what needs to happen first:
- The companies will respond to the lawsuits
- The cases go through discovery (where lawyers gather evidence)
- Either the cases go to trial or the parties negotiate settlements
- If there’s a settlement, the court must approve it
- Only then can people file claims
This process usually takes 1-3 years minimum.
Don’t fall for scams. If anyone asks you to pay money to join these lawsuits or claims you’re owed money right now, it’s a scam. Real class action settlements never require upfront payment.
What Happens If These Cases Settle?
Based on how the 2019 settlement worked, here’s what you might expect:
Compensation: Probably a few dollars per product purchased. The 2019 case paid 40¢ per can. New settlements might pay similar amounts.
Proof requirements: Settlements usually have two tiers. One tier for people with receipts (higher payments), one for people without receipts (lower payments, often capped at $5-10).
Claim process: You’ll likely file online through a settlement website. You’ll need to confirm you bought the products during specific dates.
Payment timeline: If a settlement gets approved in 2025, payments probably won’t go out until late 2025 or 2026 at the earliest.
Label changes: The 2019 settlement required Canada Dry to add words like “taste,” “extract,” or “flavor” if they mention ginger as an ingredient. New settlements might require similar labeling updates.
Why Do These Lawsuits Keep Happening?
The ginger problem: Canada Dry ginger ale contains less than 2% ginger extract according to past court documents. Many people buy it specifically for upset stomachs because they think real ginger will help. When they discover there’s barely any ginger, they feel ripped off.
The natural flavoring issue: Federal law says if a product contains both natural and artificial flavors, the label must say “artificially flavored” or “natural and artificial flavors.” You can’t just say “naturally flavored” if artificial ingredients are also present.
The geography confusion: Product names matter. If your brand is “Canada Dry” and most Americans think that means it’s from Canada, but it’s actually made in Texas or Pennsylvania, that could be considered misleading advertising.
Companies keep paying settlements: Canada Dry has now settled multiple false advertising claims. The company keeps selling the products with minimal label changes. That pattern invites more lawsuits.
What Legal Violations Are Alleged?
2024 California case claims violations of:
- California Consumer Legal Remedies Act
- California False Advertising Law
- California Unfair Competition Law
- Federal food labeling requirements (21 CFR § 101.22)
2025 New York case claims violations of:
- New York General Business Law § 349 (deceptive acts)
- New York General Business Law § 350 (false advertising)
Both cases also include claims for:
- Breach of express warranty
- Breach of implied warranty
- Unjust enrichment
- Fraudulent concealment
How to Stay Updated
For the 2024 artificial flavoring case:
- Case number: 2:24-cv-02966 (Eastern District of California)
- Check PACER (Public Access to Court Electronic Records) for court filings
- Watch legal news sites like Top Class Actions for settlement announcements
For the 2025 “Made in Canada” case:
- Case number: 2:25-cv-04818 (Eastern District of New York)
- Monitor court dockets through PACER
- Follow consumer protection news outlets
For Canadian consumers:
- Check Canadian class action websites like ClassActions.ca
- Watch for news from Canadian consumer protection groups
- If you’re in Quebec, check LPC Avocats (the law firm that handled the Quebec settlement)
Should You Save Your Receipts?
Yes, if you’re a regular Canada Dry buyer. Here’s why:
If either of the new cases settles, you’ll get more money if you have proof of purchase. Save receipts, take photos of receipts, or check if your grocery store keeps digital purchase records online (Walmart, Kroger, and other chains often do).
You probably won’t need receipts to file a claim—most settlements allow claims without proof up to a small amount like $5. But if you bought a lot of Canada Dry, having receipts could mean getting $20-40 instead of just $5.
What This Means for Consumers
Read ingredient labels carefully. Just because a front label says “natural” doesn’t mean the product is 100% natural. Look at the actual ingredient list on the back or side of the package.
Brand names can be misleading. “Canada Dry” doesn’t mean it’s made in Canada. “Real Ginger” doesn’t mean it has meaningful amounts of ginger. Marketing language is designed to create impressions, not state facts.
Companies settle without admitting guilt. Keurig Dr Pepper paid out $11.2 million in 2019 but never admitted their labels were wrong. They changed some wording but kept selling similar products. Settlements are often just the cost of doing business.
Class actions move slowly. Don’t expect quick payouts. These cases take years. The 2024 lawsuit probably won’t settle until 2026 at the earliest.
Frequently Asked Questions
Can I file a claim for the new Canada Dry lawsuits?
No. Neither the 2024 California case nor the 2025 New York case has reached settlement stage. You can’t file claims yet. If settlements happen, there will be public announcements with claim deadlines.
I live in Canada. Can I join these U.S. lawsuits?
Probably not. These are U.S. federal cases focused on American consumers. However, similar lawsuits might be filed in Canada. Quebec already had its own settlement that closed in 2021.
How much money could I get if these cases settle?
Unknown. But based on the 2019 settlement, expect around 40¢ per can or bottle. Without receipts, you’d probably be capped at $5-10 per household. With receipts, maybe $20-40 depending on how much you bought.
Is Canada Dry ginger ale actually bad for you?
That’s not what these lawsuits are about. The cases focus on whether the labeling is truthful, not whether the product is harmful. Canada Dry contains carbonated water, sugar (or artificial sweeteners in diet versions), citric acid, and flavorings. It’s basically like most other sodas.
Does Canada Dry still claim their ginger ale has real ginger?
After the 2019 settlement, Canada Dry made some label changes. Current labels are more careful about how they describe ginger content. But the company hasn’t dramatically reformulated the product—it still contains minimal ginger extract.
What if I already threw away my receipts?
That’s fine for smaller claims. Most settlements let you file without receipts up to a certain amount (usually $5-10). If you’re a heavy Canada Dry buyer, check if your grocery store keeps digital records you can access online.
When will these cases be resolved?
The 2024 case might settle by late 2025 or 2026. The 2025 case just started, so resolution is probably 2026-2027 at the earliest. Class action lawsuits typically take 2-4 years from filing to final settlement payments.
Can companies get away with false advertising?
Often, yes. Settlements let companies pay money without admitting wrongdoing. They might make small label changes but keep selling similar products. The financial penalty is usually much less than the profits they made from the misleading labels.
The bottom line: Canada Dry faces two active false advertising lawsuits in 2024-2025. Neither has settled yet. You can’t file claims right now. If you bought Canada Dry products, save your receipts and watch for settlement announcements over the next 1-2 years. The company already paid $11.2 million in 2019 for similar claims, so these new cases might also result in settlements eventually.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah