SodaStream to Compensate Thousands of Customers in $2.9 Million Settlement

SodaStream Israel will compensate tens of thousands of its customers with benefits valued at approximately 2.9 million shekels, following a class-action lawsuit. The Central District Court, presided over by Judge Iris Rabinovitz Baron, approved a settlement agreement on Wednesday, ending a legal proceeding that began in September 2023.

The lawsuit centered on SodaStream's subscription model for home soda maker gas canisters. The plaintiffs alleged that the company's practices prevented them from fully utilizing the gas canisters they paid for before their expiration, effectively forcing them to renew their subscriptions. SodaStream, however, maintained that customers were always free to use their entire allocated gas supply.

Despite these differing views, the parties reached a compromise. Under the approved settlement, SodaStream will automatically grant an additional year of warranty to 58,000 recently purchased soda makers. Additionally, the company will consolidate all program terms into a single document.

Attorneys for the plaintiffs expressed satisfaction with the settlement, calling it a significant outcome for consumers and noting the company's agreement to revise its practices. SodaStream stated that while they believed the lawsuit lacked merit, they agreed to the settlement terms, including providing benefits to the public and adjusting communication protocols, to avoid further disputes and out of goodwill.

This is not SodaStream's first legal entanglement with consumers recently. In 2024 alone, the company was ordered to compensate customers with benefits worth approximately 8 million shekels in a separate class-action case, which involved distributing 86,000 gas canisters with free home delivery.