Not Every Product in the (Unofficial) Oscars Swag Bag Is a Winner
TINA.org examines the potential deceptive advertising issues of products in the unofficial Oscars swag bag.
Summer 2017: A judge granted final approval of the settlement.
May 2017: The plaintiffs filed an amended complaint alleging that Iovate falsely markets Hydroxycut brand weight-loss products as “[s]cientifically [r]esearched” and “[c]linically-[p]roven” to promote weight loss when, according to plaintiffs, the key ingredients do not promote weight loss.
The parties also revised their settlement agreement and moved for final approval of the new agreement. According to the revised settlement terms, class members with proof of purchase may receive a full refund while class members without proof of purchase may receive $14, instead of $25, for each bottle purchased for a maximum of two awards per household. The company also agreed to modify its marketing by including a disclaimer and removing certain words and phrases. A final fairness hearing is scheduled for June 21, 2017.
March 2015: The Court denied final approval of the proposed settlement.
March 2014: A state judge preliminarily approved a $550,000 settlement of a class-action lawsuit alleging that Iovate misleadingly labels and advertises Hydroxycut dietary supplements, including Hydroxycut Max Cleanse and Hydroxycut Shape. According to the settlement terms, class members with proof of purchase may receive a full refund and class members without proof of purchase may receive a $25 refund for up to two bottles of Hydroxycut. (Garcia et al v. Iovate Health Sciences USA Inc., Case No. 1402915, Superior Court of the State of California, County of Santa Barbara).
For more information about other class-action lawsuits regarding the marketing of Hydroxycut and TINA.org’s coverage of the product, click here.
For more information about other class-action lawsuits against Iovate and TINA.org’s coverage of the company, click here.
TINA.org examines the potential deceptive advertising issues of products in the unofficial Oscars swag bag.
Cue the play-off music.
Are FTC settlements just a cost of doing business?