DALLAS, TX - Texas Attorney General Greg Abbott has resolved the state's enforcement action against the sellers of the energy drink, "Cocaine." Under the judgment, the product cannot be sold in the state of Texas and all Internet marketing must disclose that the product is not available in Texas. Because Redux Beverages L.L.C. failed to appear in court, the judge entered a judgment and permanent injunction with civil penalties of $825,000.
The court action permanently halts the distribution of the drink in Texas by Redux Beverages L.L.C., a Nevada company, since Texas co-defendants Kimball Distributing, Texas Wholesale Venture #1 and Import Warehouse Inc. had previously agreed to stop distribution.
The product's packaging depicted lettering with a granular substance font that spelled the name "Cocaine." Sellers marketed the beverage as a legal alternative to illicit street drugs and as a dietary supplement that could cure diseases. According to the state's enforcement action, the defendants' marketing claims amounted to the introduction of a new, though unapproved drug and therefore violated the Texas Food, Drug and Cosmetics Act, as well as the U.S. Food and Drug Administration's (FDA) regulations.
Investigators also found that the defendant claimed users could get "high" and feel euphoric. In its advertisements, Redux Beverages marketed the Cocaine drink as a "legal alternative" and asked whether consumers could "handle the rush."
By marketing the product as a dietary supplement with curative qualities, the defendant made unsubstantiated claims that it could help treat depression, lower cholesterol, prevent hardening of arteries and protect nerve fibers from glucose damage. Only manufacturers of FDA-approved drugs may make those claims - but the claims must be supported by legitimate scientific research.