August 24th, 2012

FTC Melts Away Millions From Makers of Exercise Device

By Peter Landers
Wall Street Journal

Jennifer Nicole Lee describes herself as an “extremely successful global megabrand,” and that much isn’t a problem for federal regulators.

But when she said on TV infomercials that she lost 80 pounds thanks to an abdominal exercise device called Ab Circle Pro, the Federal Trade Commission started poking and prodding.

The result of the FTC’s investigation was a settlement with Ms. Lee and the device’s makers. The settlements will cost the defendants between $15 million and $25 million depending on how many consumers request refunds, the commission said.

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