Ab Circle Pro makers to refund $25 million to aggrieved customers
The makers of an abdominal exercise device, Ab Circle Pro have agreed to pay $25 million to consumers for reaching a settlement with the US Federal Trade Commission.
The compensation is for charges made by the customers against the company for falsely claiming that the product would help melt away 10 pounds of fat in two weeks if customers use it three times a day. The FTC noted that products marketers were able to generate significant sales through retailers and on the internet by falsely claiming that the product would help customers melt fat with little effort.
The FTC also said that fitness expert Jennifer Nicole Lee had claimed that she lost 80 pounds using the device. The company launched a add campaign that covered print as well as TV channels. The ads aired more than 10,000 times between March 2009 and May 2010 and were among the top ten most aired infomercials in the country during that time.
Mary Engle, an FTC attorney said that the advertising was halted more likely due to an investigation by the FTC. The price was priced between $200 and $250 for customers who bought it through infomercial, the watchdog said.