Yesterday, nearly every site on the web reported on a Red Bull settlement that essentially gave away free money. And that's exactly the problem.
sued the drink maker for false advertising,
and forced Red Bull to give us all money. And the best part? Anyone who bought a Red Bull since 2002 was eligible to request a piece of the settlement—either $10 cash or $15 dollars in Red Bull products—with no proof of purchase required. Isn’t America great?
Well, apparently it’s not as great as I thought because the Internet
ruined everything.
Here’s why: In the settlement, Red Bull didn’t actually promise to give everyone who applied $10 to $15. Instead, they capped the handouts at $13 million. As Buzzfeed
reported, if too many people make claims, the settlement will be diluted so it can be split evenly. Some quick back of the envelope math, and we can figure out that if everyone requested the cash award, each claimant’s return would start shrinking after 1.3 million people applied.
