Nike, Apple agree to pay $2.4M settlement over false FuelBand claims

Nike Fuelband

Consumers who purchased a Nike+ FuelBand between 2012 and 2015 might be eligible for a small payment from Nike. The sports equipments/apparel giant and its co-defendant Apple agreed to settle a class action suit alleging the companies falsely advertised the wearable’s health tracking capabilities.

Under the terms of the settlement reached last month, Nike will pay $2.4 million to customers who purchased FuelBand between Jan. 19, 2012 and June 17, 2015. Although it was named as a defendant, Apple won’t pay a single dime.

Nike falsely advertised that FuelBand was able to accurately track calorie burn, steps and overall activity. The suit claims both Nike and Apple knew of these deficiencies yet continued to sell the device to an unsuspecting public.

Attorneys representing the class claim that the two companies misled consumers by promoting FuelBand in stores, television, online and elsewhere. Apple, on its end, sold various FuelBand models in its stores until March of this year.

Nike falsely advertised that FuelBand was able to accurately track calorie burn, steps and overall activity.Notices were sent out to potential class members on Friday via email, providing instructions on how to file settlement claims for either a $15 payment or $25 gift card redeemable at Nike retail and online stores. Those notified also have the option to object or exclude themselves from the settlement.

A fairness hearing is scheduled for November 4th to discuss settlement terms, attorneys’ fees and expenses and an award for the class representative.

[Via: AppleInsider]