Leonard v. Pepsico, Inc.

Pepsico ran a promotional campaign entitled “Pepsi Stuff.” During the promotion, consumers could collect “Pepsi Points” from specially marked soft drink packages and redeem those points for merchandise featuring the Pepsi logo. Pepsi Points could also be purchased for ten cents each. To advertise the promotion, Pepsico ran a commercial featuring a teenager getting ready for the day in Pepsi branded merchandise. As each item was featured, a subtitle would show on the screen labeling the item and a number of Pepsi points. The commercial went on to show the teenager arriving at school in a military fighter jet laughing and exclaiming that it “Sure beats the bus.” The subtitle then read “HARRIER FIGHTER 7,000,000 PEPSI POINTS.”

Plaintiff Leonard saw this commercial and was inspired to win a Harrier Jet. He consulted the Pepsi Stuff Catalog which included an Order From listing 53 items of merchandise, none of which were the Harrier Jet. Leonard initially set out to collect 7,000,000 Pepsi Points by consuming Pepsi products, but after realizing it was not feasible, set out to raise $700,000 from acquaintances instead (the actual cost of a new Harrier Jet at that time was roughly 23 million dollars). On March 27, 1996, Leonard submitted an Order Form with fifteen original Pepsi Points and a check for $700,008.50. In the item column of the the Order Form he wrote Harrier Jet. On May 7, 1996, Pepsico rejected Leonard’s submission and returned the check explaining that the the item was not part of the collection and only items featured in the Pepsi Stuff Catalog could be ordered. On May 14, 1996, Leonard’s counsel responded to Pepsico claiming their letter was unacceptable and the advertisement clearly offered a new Harrier Jet. On May 30, 1996, the actual producer of the commercial responded to Leonard stating that the use of the Jet in the advertisement was clearly a joke. On June 17, 1996, Leonard mailed yet another demand letter to Pepsico, thereafter this suit commenced.