11 Times Consumers Fought Back — and Won Big Settlements
From explosive corporate blunders to deceptive practices, these 11 epic consumer victories prove that standing up to big companies can lead to massive payouts and lasting change.
- Alyana Aguja
- 4 min read
Consumers have confronted some of the globe’s biggest companies and come out on top, winning enormous settlements in the process. From the misdeeds of the tobacco companies to the scandal involving Volkswagen’s emissions, these court fights showcase the strength of group action and consumer power. These landmark cases brought not only financial reparations but also called for corporate accountability and lasting changes, demonstrating that when consumers fight back, the consequences can be profound.
1. The Tobacco Settlement (1998)
Image from The Center for the Study of Tobacco
In 1998, big tobacco companies agreed to a historic settlement with 46 American states for $206 billion. The suit was precipitated by the states’ efforts to reclaim the costs of smoking-related healthcare. The settlement obliged the tobacco companies to pay yearly installments, control marketing techniques, and finance anti-smoking initiatives.
2. Apple’s $500 Million Settlement (2020)
Image from Fossbytes
Apple settled a class-action suit against its practice of slowing down older iPhones to conserve battery life by paying $500 million. Consumers alleged that Apple did not inform them of the practice, and they purchased new devices under false pretenses. The settlement involved individual payments for impacted iPhone owners and mandated that Apple enhance transparency in battery management.
3. Volkswagen’s Diesel Emissions Scandal (2016)
Image from Car and Driver
Volkswagen had to settle one of the largest consumer settlements ever after it was revealed that the company had cheated on emissions tests with software. Volkswagen agreed to compensate U.S. consumers more than $14 billion, including vehicle repairs and buybacks. It was a huge victory for consumers and a historic move against a large corporation for environmental fraud.
4. Equifax Data Breach Settlement (2019)
Image from Federal Trade Commission
After the 2017 data breach that concerned 147 million individuals, Equifax settled for as much as $700 million. The data breach revealed sensitive information, such as Social Security numbers, and prompted charges of insufficient security protocols. Consumers received compensation, identity theft protection services, and the assurance of improved security measures.
5. The Nestlé Infant Formula Settlement (1999)
Image from MR Online
Nestlé faced a $6 million settlement after accusations of deceptive marketing of infant formula in developing countries. The case centered on claims that Nestlé’s practices violated the World Health Organization’s guidelines for marketing breast milk substitutes. The settlement required Nestlé to fund educational programs and pledge better advertising ethics.
6. Wells Fargo Fake Accounts Scandal (2016)
Image from The Guardian
Wells Fargo was hammered with a multi-billion-dollar settlement when it was discovered that employees created millions of unauthorized accounts just to fill sales quotas. The bank shelled out $3 billion to settle claims from customers, regulators, and shareholders. The historic settlement also led to the termination of thousands of employees and irreparable harm to the bank’s reputation.
7. Ford Motor Company’s $300 Million Settlement (1994)
Image from Wikiwand
Ford settled for $300 million over the notorious Ford Pinto’s gas tank design defects. The vehicles were susceptible to fatal explosions in rear-end collisions, and this caused public outcry and lawsuits. The settlement compensated victims and their families, and Ford was forced to redesign its vehicles for safety enhancements.
8. The Red Bull False Advertising Settlement (2014)
Image from Wikipedia
Red Bull paid out a $13 million class-action lawsuit following allegations that its advertisements deceptively implied the beverage could improve performance and concentration. Customers who had bought the product were entitled to a refund or complimentary Red Bull products. This case is an excellent example of consumers fighting deceptive marketing practices.
9. Microsoft’s $10 Million Settlement (2002)
Image from Microsoft
In a class-action suit against its monopolistic behavior, Microsoft settled with U.S. consumers for $10 million in a landmark case. The suit claimed that Microsoft employed its market dominance in the software industry to favorably market its own products over others’. This settlement compelled Microsoft to alter its software bundling behavior and provide consumers with more choices.
10. McDonald’s Hot Coffee Lawsuit (1994)
Image from Wikipedia
Stella Liebeck’s suit against McDonald’s for accidental spills of hot coffee onto herself became a well-known product liability case. The jury handed her $2.86 million in damages (later cut back), following their decision that McDonald’s coffee was unbearably hot, resulting in extreme burns. The case raised a tort reform, consumer rights, and corporate accountability debate.
11. BP’s Deepwater Horizon Oil Spill (2010)
Image from Britannica
In the aftermath of the disastrous Deepwater Horizon oil spill, BP consented to a $20 billion settlement to compensate harmed residents and businesses. The spill led to unprecedented environmental devastation, and BP was found negligent in its handling of safety measures. The settlement was the biggest environmental compensation transaction ever, making BP responsible for what had occurred.