Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Ab GLIDER marketers to pay $3M civil penalty over alleged consent order violations, (Sep 18, 2014)

By Greg Hammond, J.D.

ICON Health & Fitness, Inc.—the manufacturer of a line of ab GLIDER weight-loss exercise equipment—and three affiliated marketing companies have agreed to pay $3 million in civil penalties to settle FTC charges that they violated a 1997 consent order, prohibiting the companies from making unsubstantiated weight-loss claims with regard to exercise equipment (U.S. v. ICON Health and Fitness, Inc., FTC File No. 962 3045, Case No. C-3765).

In its complaint, the Commission alleged that Icon and its marketing companies made unsubstantiated claims, in violation of the FTC Act and the previous consent order, that its ab GLIDER products will cause consumers to lose pounds, inches, or clothing sizes by using the ab GLIDER without engaging in other exercise or dieting, or using the ab GLIDER for only 3 minutes a day. The representations were made in a series of video advertisements and infomercials that were endorsed by celebrity Elisabeth Hasselbeck, and supported by a number of consumer testimonials. The Commission further alleged that none of the consumers that provided testimonials actually achieved their results using the ab GLIDER for three minutes a day or without engaging in other exercise or dieting.

In addition to the $3 million civil penalty, the stipulated order for permanent injunction and civil penalty prohibits the companies from making unsubstantiated representations regarding: (1) the relative, comparative, or absolute rate at which users burn calories, or the number of calories users burn, through use of such product; weight, body inches, or clothing sizes lost through the use of such product; or amount of fat or fat calories users burn through the use of such product; or (2) about the benefits, performance, or efficacy of such product with respect to calorie burning, fat burning, weight loss, body inches lost, or clothing size reductions. In addition, the companies are banned from using user testimonials or endorsements of a product, representing that the product represents the typical or ordinary experience of members of the public who use the product, unless substantiated by competent, reliable scientific evidence.

“The FTC is committed to protecting consumers from bogus weight-loss claims, whether they’re for dietary supplements, exercise equipment, or any other type of product,” stated FTC Bureau of Consumer Protection Director Jessica Rich in announcing the case. “Just because time has passed since an order was entered, doesn’t mean a manufacturer can ignore the order and return to its old tricks.”

Attorneys: Christopher S. Huther (Wiley Rein LLP) for the defendants. James W. Harlow for the U.S. Department of Justice. Gregory J. Madden for the Federal Trade Commission.

Companies: ICON Health and Fitness, Inc.

News: Advertising ConsumerProtection FederalTradeCommissionNews