A class action has been filed against Anheuser-Busch Company and Miller Brewing Company on behalf of all current residents of the state of California who were under 21 years of age between February 3, 2000, and February 3, 2004, and who purchased alcoholic beverages manufactured by the companies during that period. The action alleges that the companies violated state unfair competition laws in the California False Advertising Act by deliberately targeting alcoholic beverage advertising to underage drinkers. The action seeks unspecified compensatory damages and disgorgement of all profits wrongly made through illegal advertisement.

The action alleges that the companies both produce the type of highly sweetened flavored malt beverages that it calls ”alcopops,” which are designed specifically to appeal to young drinkers. Anheuser-Busch markets markets six of these beverages: Bacardi Silver, Bacardi Silver O, Bacardi Silver Raz,, Doc Otis’ Hard Lemon Malt Beverage, Tequiza, and Tequiza Extra. Miller also manufactures and distributes these types of beverages-- among its offerings are Jack Daniel’s Original Hard Cola, Sauza Diablo, Stolichnaya Citrona, and Skyy Blue. These drinks are attractively packaged in a way that allegedly obscures their alcoholic nature-- the action alleges that many of their bottles and labels are actually designed by the same companies that design packaging for children's drinks. This becomes apparent in the alleged fact that children ages 9 to 11 are as likely to be familiar with Budweiser's talking lizards and frogs as they are with Bugs Bunny.

The action alleges that Anheuser-Busch and Miller both intentionally exploit minors and lure them into unhealthy and potentially life-threatening addictions before they have the maturity necessary to make an informed decision whether to consume alcohol. National statistics indicate that alcohol is by far the most used and abused drug among American teenagers. According to a 1999 national survey, nearly one-third of all high school students reported hazardous drinking --more than five drinks in one sitting-- during the 30 days before the survey. The National Council on Alcoholism and Drug Dependence has found that 32% of all California 11th graders are excessive alcohol users.

The Goodwins allege that the companies have powerful economic incentives to encourage underage drinking-- citing the Journal of the American Medical Association, the action alleges that underage drinkers account for 19.7 percent of the total alcohol consumption in the United States. Using current economic indicators, this amounts to a $22.5 billion consumer expenditure on alcohol each year. The lawsuit breaks this down further: it estimates that Anheuser-Busch and Miller earn approximately $15.75 billion from underage consumption. Annual revenues of $15.75 billion multiplied by four years of misconduct amounts to roughly $63 billion in unlawful revenue from underage consumption.

There are other ways to measure the impact the allegedly illegal advertising. In 1999, 13,875 minors were arrested in California for driving while intoxicated. More than 33 percent of current vehicle-related teenage deaths in California involve the consumption of alcohol. The Journal of the American Medical Association reported in a February 26, 2003, article: "Teenage drinking can physically damage the brain; interfere with mental and social development; interrupt academic progress; increase chances of risky sexual behavior and teenage pregnancy; juvenile delinquency, and crime; compromise health; and result in unintentional injury and death."

Each year, more than 100 underage California drivers die, and thousands more are injured in alcohol-involved vehicle crashes.