FTC Flexes its Muscles in Ab Energizer Case
FTC and California Get Over $1.4 Million for Consumers
The Federal Trade Commission filed two proposed stipulated orders in federal court resolving charges that the marketers of AB Energizer, an electronic abdominal exercise belt, falsely advertised that using the AB Energizer caused weight loss, inch loss, and well-defined “six-pack abs” without exercise. These orders are part of a global settlement resolving the FTC’s lawsuit and related actions brought by county and city prosecutors in California. Under the settlements, AB Energizer marketers and certain retailers collectively will pay over $2 million, of which over $1.4 million will be for consumer redress. The balance will go to the California prosecutors for costs and civil penalties. The FTC and California orders bar the defendants from making the challenged false advertising claims for the AB Energizer or any similar device, and contain other injunctive relief to prevent future deceptive advertising.
The stipulated final orders settle the Commission’s court actions against the following defendants: Electronic Products Distribution, L.L.C. (EPD); AB Energizer Products, Inc. (EPI); Abflex USA, Inc.; AB Energizer, L.L.C.; Thomas C. Nelson; Martin Van Der Hoeven; Douglas Gravink; and Gary Hewitt. The defendants are based in Southern California, with most located in San Diego. An amended complaint filed with the stipulated orders adds Gravink and Hewitt to the FTC’s original complaint.
The FTC recognizes the invaluable role of prosecutors from the City of San Diego and the California counties of Napa, Solano, and Sonoma in reaching a settlement that maximized the amount of redress available for AB Energizer purchasers.
http://www.ftc.gov/opa/2005/04/abenergizer.htm