Celsius Holdings / CELSIUS Energy Drink False Advertising Class Action

CELSIUS energy drinks became one of the fastest-growing beverage brands in the United States, marketed heavily to fitness enthusiasts and young consumers with claims that the drinks contain 'no preservatives' and use only 'healthy, natural ingredients.' A class action filed in August 2023 alleges this core marketing claim is false and misleading, because CELSIUS drinks contain citric acid—a compound that functions as a preservative by inhibiting microbial growth and extending shelf life. Plaintiffs argue that millions of consumers paid a premium price for CELSIUS drinks over competitors specifically because of the 'no preservatives' claim, and they would not have purchased the product—or would have paid less—had they known the claim was allegedly inaccurate.

The lawsuit cites FDA regulations and food science literature establishing that citric acid is commonly classified and used as a preservative in the food and beverage industry. Celsius Holdings has contested this characterization, arguing citric acid is used in its formula solely for flavor purposes. A $7.8 million preliminary settlement was reached in 2024, making eligible purchasers entitled to claim a cash payment or product voucher. The case is notable because it targets a brand that built its identity—and a multi-billion-dollar market valuation—on 'better for you' marketing. Celsius Holdings had previously settled a similar 'no preservatives' class action for $7.8 million in 2022, and the new litigation alleges the company continued its advertising practices after that settlement.