L&K Coffee Co. agreed to pay $6.15 million to resolve claims it falsely advertised its coffee as originating from the Kona region.
The settlement benefits individuals who farmed Kona coffee in the Kona district and sold their Kona coffee between Feb. 27, 2015, and Oct. 4, 2022.
L&K is a coffee company that owns several coffee brands including Magnum Coffee Roastery. According to a class action lawsuit, L&K falsely advertises its coffee products as originating from the Kona District in Hawaii despite being farmed from other areas.
The Kona District on the Big Island of Hawaii grows some of the best quality coffee in the world due to its volcanic soil, elevation and humidity. Consumers are willing to pay a higher price for Kona coffee based on its reputation, plaintiffs explain. L&K allegedly takes advantage of this reputation by passing its ordinary coffee as higher quality Kona coffee.
Farmers say they have been injured by this false advertising. Counterfeit Kona coffee products allegedly drive down the price of genuine Kona coffee. In addition, counterfeit products allegedly bring down the reputation of Kona coffee when customers make judgments based on inferior products.
“By their actions, Defendants have artificially depressed the market price of authentic Kona coffee, harmed the reputation of authentic Kona coffee as a premium product, and caused consumer confusion as to the legitimate sources of Kona coffee,” the Kona coffee class action lawsuit...
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