SC clears Pepsi of liability in ‘349’ flap

The Supreme Court (SC) has cleared Pepsi-Cola of any liability in a promotional flap that sparked lawsuits and riots 14 years ago, a court spokesman said yesterday.

The June 15 decision, made public yesterday, found "no proof of negligence" by Pepsi and said the company should not be held liable for damages.

"This should be the defining decision. The lower courts are bound by this decision," said SC spokesman Ismael Khan, referring to numerous suits against Pepsi still pending in trial courts around the country.

In the 1992 "Number Fever" sales campaign, Pepsi Cola Philippines Inc. offered prizes of up to P1 million for holders of bottle caps with winning numbers.

When the number "349" was announced on May 25, 1992, tens of thousands of crown holders claimed the prizes, but Pepsi refused to pay all of them, saying the caps did not contain the proper security codes.

Pepsi said a computer glitch picked the number by mistake.

The High Court cited at least three earlier decisions in which it said the security code was "an indispensable element of a winning crown."

"The issues surrounding the ‘349’ incident have been laid to rest and must no longer be disturbed in this decision," the court said.

The company faced more than 1,000 criminal and civil suits, but most have been dismissed, said company lawyer Alexander Poblador.

Poblador said the company paid up to P250 million to nearly 500,000 non-winning claimants as a goodwill gesture.

"I think that was a costly way of appeasing the public," Poblador said.

Pepsi’s refusal to pay every claimant also sparked riots and calls for a boycott.

At least 37 company trucks were burned in attacks, including a grenade blast that killed three people in Davao City. The blast forced the company’s Davao plant to suspend operations. – Jose Rodel Clapano, AP