By Sara Germano
Nike Inc. and Apple Inc. have agreed to settle a class-action
lawsuit brought by consumers regarding the efficacy of the Nike+
FuelBand, and will offer partial refunds to people who bought the
fitness-tracking device.
The lawsuit had alleged the companies misled consumers about the
accuracy of the device, which is worn like a wristwatch and retails
for over $149. Consumers who purchased the fitness tracker between
Jan. 19, 2012, and June 17, 2015, are eligible for a partial refund
of either $15 or a $25 Nike gift card, according to a website for
the settlement, NikeFuelBandSettlement.com.
The suit, which was first brought against Nike and Apple in
2013, alleged that "false and/or misleading statements were made
regarding the Nike+ FuelBand's ability to accurately track steps
[and] calories," among other claims, according to the
settlement.
Both Nike and Apple deny the claims in the suit. Nike will be
responsible for the settlement payments, according to the terms of
the settlement. Reggie Borges, a spokesman for Nike, said the
company remains committed to Nike+ and Nike Fuel, their proprietary
fitness-tracking metric.
Apple didn't immediately respond to requests for comment.
Nike and Apple teamed up in 2006 to develop the Nike+ iPod, the
first in a series of sports and music products between the two
companies. Apple Chief Executive Tim Cook is a member of Nike's
board of directors. The FuelBand was introduced in 2012 and was
among the early offerings in the now-crowded
digital-fitness-product market, which also includes upstarts Fitbit
and Jawbone, among others.
Last spring, Nike began to move away from developing
fitness-tracking hardware, and early FuelBand devices began popping
up for half-price on sportswear clearinghouses. Nike said it was
laying off some employees in its digital-fitness department, but
emphasized it was still active in software development. The Nike+
app is now among the feature components of the Apple Watch, which
went on sale earlier this year.
False-claims suits aren't uncommon in sportswear. Last year,
Vibram USA Inc., the maker of the glovelike running shoes with
spaces for each toe, moved to settle a similar class-action suit
which alleged the company misled consumers with unsubstantiated
claims about the health benefits of barefoot-style running, claims
which the company disputed.
Write to Sara Germano at sara.germano@wsj.com
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