(Image: Diageo)

(Image: Diageo)

United States: Diageo faces lawsuit for alleged deception in the sale of tequila

A class-action lawsuit filed on May 5th in the Eastern District Court of New York alleges that Diageo mislabeled two of its tequila brands—Casamigos and Don Julio—as "100% agave" despite allegedly containing significant amounts of alcohol derived from other sources.

The plaintiffs, representing consumers in New York and New Jersey, include cocktail enthusiast Avi Pusateri, the Brooklyn-based restaurant Sushi Tokyo Inc., and Chaim Mishulovin. They claim that laboratory analyses revealed the tequilas contained notable concentrations of cane or other non-agave alcohols, contradicting the labels’ promise of being made solely from Blue Weber agave. Court documents state that consumers paid premium prices based on the "100% agave" designation, which the plaintiffs argue constitutes false advertising and deceptive business practices.

Diageo has strongly rejected the allegations. In a public statement, the company called the lawsuit "baseless" and said it intends to "vigorously defend" its position in court. The suit seeks over €4.6 million (more than $5 million) in damages on behalf of consumers in the two states.

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