COMPANIES marketing the Ab Circle Pro exercise device have agreed to pay as much as $24 million in refunds to customers to settle US regulators' charges of deceptive advertising.
The Federal Trade Commission says it was deceptive to promise that people could lose 4.5kg in two weeks by using the abdominal exercise device for only three minutes a day.
The FTC had filed a civil lawsuit against the companies.
Foods for Weight Loss
In the settlements announced today, Fitness Brands Inc, Fitness Brands International Inc, Direct Holdings Americas Inc and Direct Entertainment Media Group Inc agreed to pay a total of at least $US15 million and up to $US25 million, depending on the amount of refunds requested.
Natural Weight Loss
Consumers should carefully evaluate advertising claims for weight-loss products, the FTC said.
Reader's Digest Association Inc also agreed to contribute to the refunds. The association was named as a relief defendant in the FTC's suit filed on Wednesday in federal court in Miami.
That means it wasn't accused of wrongdoing but the FTC sought to recover money that the agency said the association received from its subsidiaries Direct Holdings Americas and Direct Entertainment Media Group as proceeds from the deceptive advertising.
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