Apple and Nike to settle on FuelBand lawsuit

26 Jul 2015 | Author: | No comments yet »

Apple & Nike Finally Settles Lawsuit Mutually for FuelBand.

Apple and Nike have agreed on the terms of the settlement surrounding the lawsuit against the two companies for allegedly misrepresenting their fitness watch, the FuelBand.

Consumers who bought a Nike+FuelBand during 2012 and 2015 might now be eligible to receive a small payment from the sports brand Nike after an agreement was reached along with co-defendant Apple to settle the class action suit that alleged the companies of falsely advertising that the device had capabilities to track health.As per terms that were reached in June, Nike is going to be paying $ 2.4 million to their customers who bought their FuelBand between 19th Jan 2012 and 17th Jun 2015. The plaintiffs proved that the steps, calorie burn & overall activity measurement on the device’s dashboard weren’t accurate and that Nike & Apple continued to market the product even though they knew this. Leading the plaintiffs, Carolyn Levin, their representative alleged that FuelBand, the erstwhile brand from Nike could not live up to the advertisements that touted its ability to track calorie burn accurately, steps and the overall activity representing a conceptual reading of “NikeFuel”.

According to the attorneys for the plaintiffs, the consumers were misled by the companies by promoting the FuelBand in television, stores, online and other places. As the FuelBand allegedly was never capable of performing the tracking functions advertised, the suit asserted that Nike was also in breach of warranty.

Potential class members received notices on Friday telling them how they can file their settlement claims which entitled them to a payment of $15 or a $25 gift card which could be redeemed at Nike stores. Levin claimed that the FuelBand doesn’t accurately track fitness measurements like calories burned, steps taken, and overall activity as was advertised. Jay Blahnik, the fitness guru was consulted while FuelBand was being created joined the company in 2013 and was also an important player in the development of the health tracking functions for the Apple Watch. Apple also has an intimate working relationship post partnership on several health related software and hardware solutions dating back to 2006 when the Nike+iPod sensor kit hit the market.

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