Summary: Nike apparently missed the mark with their wearable fitness tracker and has agreed to pay purchasers of the FuelBand a partial refund.
Nike Inc. and Apple Inc. will settle a class-action lawsuit for falsely representing the capabilities of the Nike+ Fuelband fitness system in their marketing promotions. Carolyn Levin filed the complaint in the Superior Court for the State of California.
The Fuelband claimed to “track every step and calories burned” of the user but the results were very inaccurate. Plaintiffs in the suit allege that the information the band gave was extremely inaccurate for their physical activity and that when the companies refused to reimburse users for broken bands, they were breaching warrant terms.
Apple and Nike were aware of the issues with the FuelBand but still sold it with the original marketing verbiage, even after the class action had been filed. Nike will take full responsibility for the settlement even though Apple was a partner in the development of the band.
The settlement stated “Despite Nike’s and Apple’s belief that they are not liable for, and have good defenses to, the claims alleged in the Litigation, Nike and Apple desire to settle the Litigation, and thus avoid the expense, risk, exposure, inconvenience, and distraction of continued litigation…”
Nike is offering either $15 cash or a $25 Nike gift card to those that purchased the FuelBand. Claims must be submitted before January 4th, 2016.
Other companies that have falsely advertised their product:
MillerCoors Sued for False Advertising
Owner of Hellmann’s Sues Maker of “Just Mayo” for False Advertising
Beck’s Beer Loses False Advertising Suit, Beer Actually Brewed in the U.S.
Source: http://www.legaltechnews.com/home/id=1202733289150
Photo: forbes.com