F.T.C. Settles with Marketers of Ab Circle Pro

August 23, 2012, 12:54 pm

By TANZINA VEGA

There are few easy ways to loose weight quickly, but that has not stopped some marketers from making claims to the contrary, especially for products pitched on late night infomercials.

On Thursday, the Federal Trade Commission announced a settlement with the marketers of one such product, an abdominal exercise machine called the Ab Circle Pro.

The commission accused the marketers of falsely claiming that using the device for three minutes was the equivalent of doing 100 sit ups and that users would loose 10 pounds in two weeks. The defendants in the case have agreed to pay a minimum of $15 million and a maximum up to $25 million in refunds to consumers.

“The FTC reminds marketers that they sh ould think twice before promising a silver-bullet solution to a health problem â€" whether it involves losing weight or curing cancer,” said David C. Vladeck, the director of the commission's bureau of consumer protection in a statement. “Weight loss is hard work, and telling consumers otherwise is deceptive.”

The defendants include Michael Casey and David Brodess, the owners of Fitness Brands and Fitness Brands International, and Direct Holdings America and Direct Entertainment Media Group, subsidiaries of Reader's Digest Association.

An infomercial producer named Tara Borakos and her companies, Tara Productions and New U, as well as the spokesperson for the brand, Jennifer Nicole Lee and her companies, JNL and JNL Worldwide, were also named as defendants in the case.

Despite being the product spokeswoman, Ms. Lee was not charged with making false claims. Instead, she will be under order not to make false claims abo ut her personal weight loss and will not be allowed to endorse any product “unless the endorsement reflects her honest opinion or experience.”

“She was not an owner of the companies or a director or officer of the companies that actually marketed the product,” said Mary Engle, the associate director of the commission's division of advertising practices, of Ms. Lee's exemption. “Her role in the liability is different.”

The payments to consumers will include $1.2 million from Fitness Brands and $13.8 million from Direct Holdings Americas, Direct Entertainment Media Group and Reader's Digest. Ms. Lee was not ordered to make any payments.

On a conference call with reporters, Ms. Engle described sales of the Ab Circle Pro as “very substantial” and said the commission “encourages cable networks as well as other networks to screen the ads before they run them, including infomercials.”

According to the commission, the commercials aired mor e that 10,000 times between March 2009 and May 2010. As a result of the charges, the makers of the Ab Circle Pro agreed to cease sales and production of the product, Ms. Engle said.

Ms. Engle would not comment on whether the commission was investigating a similar product, called the Ab Glider Pro, which is endorsed by the television personality, Elisabeth Hasselbeck.

The commission recently has announced similar settlements with other companies, including a $25 million agreement in 2011 with Reebok International over claims about the effectiveness of its EasyTone line of sneakers meant to firm a person's legs and buttocks.

In May, the commission announced a $40 million settlement with Skechers for making false claims about various shoes that could help consumers loose weight without having to go to a gym.

Tanzina Vega writes about advertising and digital media. Follow @tanzinavega on Twitter.