Celsius Faces Class Action Over 'Healthwashing' Label Claims

Celsius Holdings faces a class action lawsuit, filed Oct. 28 in the U.S. District Court for the Northern District of Illinois, that accuses the energy drink maker of "healthwashing" consumers through its label claims. The complaint targets the phrases "accelerates metabolism" and "burns body fat," and covers both Celsius' canned energy drinks and its electrolyte powders.

The lawsuit takes direct aim at the studies behind those claims. It argues Celsius' internal health research was funded by the company itself, and that the research shows no evidence the drink produces "meaningful" fat loss without changes to diet and exercise.

"Reasonable consumers, reading the front of the label, would understand that statement to promise increased metabolism and body fat burned solely by virtue of drinking [Celsius]," the lawsuit said.

A similar complaint was filed against Celsius on Oct. 26 in Washington Western District Court.

How Celsius Is Responding

The company is not backing down. Celsius told Food Dive it stands by its peer-reviewed studies and product claims, which it said were reviewed by the Better Business Bureau's National Advertising Division.

"Our products are clearly labeled, as they have been for many years, and go above and beyond FDA requirements," a Celsius spokesperson wrote in an email.

What Does This Change for Marketers?

The case is a reminder that health claims remain one of the most active targets in food and beverage litigation. Wellness and ingredients drive purchasing decisions, and that makes label language a legal battleground.

Celsius is not alone. Earlier this year, Chobani, Liquid Death and David Protein each faced class action complaints over their labeling.

This is also not Celsius' first fight over these claims. In 2011, a California consumer sued, claiming he did not burn calories as advertised. A judge dismissed that complaint.

The plaintiffs' attorneys argue Celsius deliberately courts fitness and wellness shoppers because those consumers pay premium prices based on health claims. The lawsuit asks Celsius to stop using the claims, cover monetary damages and pay attorneys' fees.

Why Internal Studies Don't Settle the Question

The timing matters. Functional energy drinks and consumer demand for healthy beverages are both rising, which primes more shoppers to buy on the strength of these claims.

Brands have noticed the liability risk. Some have invested heavily in research to back their assertions. Celsius has published studies on the drink's thermogenic properties. Prebiotic soda brand Olipop is investing to gauge its beverage's impact on gut health.

But company-funded science invites its own scrutiny. The Celsius lawsuit shows how internal research can become evidence against a brand rather than a shield for it — plaintiffs can cite the same studies to argue the label promises more than the data supports.

For marketers in the functional beverage space, the practical takeaway is clear: a peer-reviewed study reviewed by the National Advertising Division does not guarantee immunity in federal court. As the Illinois and Washington cases move forward, every brand making metabolism or fat-loss claims will be watching how courts define what a "reasonable consumer" believes a label promises.