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Coca-Cola hit with class-action lawsuit over allegedly misleading advertising — here's what you need to know

The lawsuit claims that the brand violated numerous laws.

The lawsuit claims that the brand violated numerous laws.

Photo Credit: Depositphotos.com

The Coca-Cola Company is facing a class-action lawsuit, with consumers alleging that some products are labeled as having "100% Natural Flavors" while masking synthetic additives.

The lawsuit taps into growing backlash against greenwashed labels as consumers push major brands to come clean about what's inside every product.

What's happening?

Victoria Palmer, a plaintiff from California, filed the complaint on May 27 after learning that Fanta and Sprite were not as clean as advertised, reported Top Class Actions.

Although labeled as containing all-natural flavors, the products have ingredients like citric acid and potassium citrate, food additives that enhance flavor. But these aren't natural ingredients.

Palmer hopes to send a message to the Coca-Cola Company that consumers won't tolerate misleading labeling. The lawsuit claims that the brand violated numerous laws, including false advertising laws and California's Consumers Legal Remedies Act.

Why is this lawsuit important?

While often deemed safe, the food additives in these sodas are linked to potential health problems, like muscular and stomach pains and electrolyte imbalances. However, this class-action lawsuit also addresses a deeper problem with mislabeling: greenwashing.

Greenwashing happens when a company uses buzzwords or imagery to make its products seem cleaner than they are. However, its ingredients, packaging, or production methods don't tell the same story. In early 2025, Coca-Cola was also accused of greenwashing for quietly walking back its pledge to make 25% of its soda bottles returnable or refillable by 2030.

But it's not just Coca-Cola that's been in the spotlight for greenwashing. A report found that an alliance of multinational oil companies produced more plastic waste than they've removed despite pledging to clean up global plastic waste. The Italian Competition Authority also recently fined three transportation companies for misleading consumers about their use of green-energy facilities.

The more companies that insist on using misleading advertising practices, the more consumers bear the consequences. People might be more inclined to buy products that seem better for them and the environment. But that's not always what's happening, and many may never know unless a lawsuit like this comes to light. 

What's being done about greenwashing?

Coca-Cola has been dubbed the worst plastic polluter in the world for six straight years. In response, the company claims that reducing plastic waste is one of its priorities, announcing its transition to 100% recycled plastic for its 20-ounce bottles.

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The Coca-Cola Foundation also invested in initiatives to strengthen recycling across Eurasia and the Middle East. Yet, it is clear that the beverage giant must do more to address plastic waste and unclear messaging.

Government agencies are working to hold companies accountable against greenwashing, though. In late 2024, the U.S. Securities and Exchange Commission fined the financial services firm WisdomTree $4 million for greenwashing.

Another company, Invesco Advisers, was fined $17.5 million for inaccurately marketing its investments as mostly "ESG integrated."

Consumers can also fight against greenwashing, just as Palmer is with this Coca-Cola lawsuit. One way to do this is to educate yourself about greenwashing so you can identify it when it happens.

Then, advocate for change by emailing brands to demand honest packaging and saving your dollars for companies that back up their claims with independent certifications, like USDA Organic or Clean Label Project Certification.

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