Gatorade has agreed not to make disparaging comments about water as part of a $300,000 settlement reached Thursday with California state over allegations it misleadingly portrayed water's benefits in a cellphone game where users refuel Olympic runner Usain Bolt.
The game, downloaded 30,000 times in California and 2.3 million times worldwide, is no longer available.
The dispute between the sports-drink company and California Attorney General Xavier Becerra was settled in less than a day after Becerra filed a complaint in Los Angeles County.
Becerra's complaint alleges the game, called Bolt!, misleadingly portrayed the health benefits of water in a way that could harm children's nutritional choices.
The game encouraged users to "keep your performance level high and avoid water," with Bolt's fuel level going down after drinking water but up after drinking Gatorade, the complaint alleged.
The settlement should serve as a warning to companies that falsely advertise, Becerra said.
"Making misleading statements is a violation of California law. But making misleading statements aimed at our children is beyond unlawful, it's morally wrong and a betrayal of trust," he said in a statement. Gatorade agreed to the settlement but has not admitted wrongdoing.
"The mobile game, Bolt!, was designed to highlight the unique role and benefits of sports drinks in supporting athletic performance. We recognise the role water plays in overall health and wellness, and offer our consumers great options," spokeswoman Katie Vidaillet said in an email.
In addition to agreeing not to disparage water, Gatorade agreed not to make Bolt! or any other games that give the impression that water will hinder athletic performance or that athletes only consume Gatorade and do not drink water. Gatorade also agreed to use "reasonable efforts" to abide by parent company PepsiCo's policy on responsible advertising to children and to disclose its contracts with endorsers.
Of the settlement money, $120,000 will go toward the study or promotion of childhood and teenager nutrition and the consumption of water. The game was available in 2012 and 2013 and for a limited time in 2017.