SodaStream to Compensate Israeli Customers $780,000 in Class Action Settlement

A district court in central Israel has approved a class-action settlement requiring SodaStream Israel to compensate customers with benefits valued at NIS 2.9 million (approximately $780,000). The lawsuit, filed in September 2023 by four customers, alleged deceptive marketing practices related to the sale of gas canisters for home soda makers.

The core of the claim was that SodaStream's "subscription plans," which offer a set number of gas canisters for a fixed period, prevented customers from fully utilizing their remaining canisters towards the end of their subscription term. Plaintiffs argued that the company effectively forced consumers to renew their contracts to use canisters they had already paid for and failed to clearly present the agreement's terms.

SodaStream countered that the lawsuit lacked factual and legal basis, asserting that customers were free to use their full allotment of canisters within the subscription period. However, the parties reached a compromise.

Under the settlement, SodaStream will provide an additional year of free warranty to the last 58,000 soda makers purchased before the settlement's approval date. This extended warranty will automatically activate after the original warranty expires, at no cost or action required from the customer. The value of this benefit per device is estimated at NIS 50 (about $13.50).

Additionally, SodaStream is required to consolidate the terms of its subscription plans into a single document, in compliance with consumer protection law, and provide it to purchasers. The court deemed the settlement fair, just, and reasonable, approving the resolution.