By: Linda L. Goodman
In 1997, the Federal Trade Commission (“FTC”) granted an order against ICON Health & Fitness, Inc. (“ICON”) which prohibited the marketers from making unsubstantiated claims for weight-loss exercise equipment and required that an endorser’s claim reflect a typical user’s experience or be accompanied by a clear and prominent disclosure.
Last month, ICON Health & Fitness, Inc. and its related entities have agreed to pay $3 million in civil penalties to settle FTC charges that the companies violated the 1997 Order by advertising that use of their exercise equipment for just three minutes a day, with no adjustment in diet, would result in significant weight loss.
According to the complaint, since at least August 2010 and through June 2013, ICON ran several types of advertisements making weight-loss claims for the ab GLIDER™. The ads included video infomercials on television, ICON’s website, and social media networks. The advertisements, featuring television personalities and multiple consumer endorsers, claimed that using the ab GLIDER™ alone or using the ab GLIDER™ for only three minutes a day would lead to lost pounds, inches, or clothing sizes.
The truth, according to the FTC complaint, is that the celebrities and consumers achieved these results by being on a controlled diet, using the ab GLIDER™ for more than three minutes a day, and engaging in additional exercise. Because ICON could not substantiate the claimed results were solely from ab GLIDER™ use or use for only 3 minutes a day, the FTC charged it with violating the 1997 order.
In addition to the $3 million civil penalty, due within 45 days of when the court enters the settlement order, ICON Health & Fitness, Inc., and its related entities entered into a new administrative order that extends their reporting requirements to the FTC for another 20 years from the date the Commission issues it.
“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,” said Jessica Rich, Director of the Commission Bureau of Consumer Protection. “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.”
This case emphasizes the necessity for all marketers to substantiate their claims and triple check the stories given to them by consumer endorsers.
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This article is a publication of The Goodman Law Firm and is intended to provide information on recent legal developments. This article does not create an attorney-client relationship, nor should it be construed as legal advice or an opinion on specific situations. This may constitute “Attorney Advertising” under the Rules of Professional Conduct and under the law of other jurisdictions.
Linda L. Goodman is the founder of The Goodman Law Firm, concentrating its practice in internet business and law. Her firm’s clients include Advertisers, Affiliates, Affiliate Networks, and ISP’s.
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