Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Hockey equipment manufacturer to make $500K donation to settle false ad claims, (Nov 14, 2014)
Organizations Mentioned:Bauer Hockey Corp.
By Greg Hammond, J.D.
Hockey equipment manufacturer Bauer Hockey Corp. has agreed to donate $500,000 in equipment to a registered Canadian charity that supports youth participation in sports, the Canadian Competition Bureau has announced. The donation is the result of a consent agreement with the Competition Bureau, to resolve charges that Bauer’s advertising falsely gave the impression that its RE-AKT helmets protect hockey players from concussions caused by rotational impacts.
According to the Competition Bureau, although Bauer tested the helmet prior to making the concussion protection claims, the testing was not sufficiently adequate or proper to support the claims.
“The Bureau takes representations to the public about performance claims that are not based on prior adequate and proper testing very seriously, particularly when they relate to the health and safety of consumers,” stated the Senior Deputy Commissioner of Competition, Matthew Boswell. “I am pleased that an agreement is in place that will result in the performance claims being corrected, and that some underprivileged children will have greater opportunities to participate in sports.”
As part of the consent agreement, Bauer has agreed to: (1) donate $500,000 worth of equipment to a charity that supports youth participation in sport; (2) remove or change the remaining performance claims from all of the helmet’s marketing, packaging, and online advertising material; (3) put an enhanced Corporate Compliance Program into effect, and ensure that retailers do not make similar performance claims; and (4) pay $40,000 to the Competition Bureau for investigational costs.
Companies: Bauer Hockey Corp.
News: Advertising