Nike, Apple Agree to Settle Nike+ FuelBand Suit -- Update

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 about $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 declined to 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.

In the spring of 2014, 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. That lawsuit 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 [e-mail]

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