1. POM Wonderful
> Parent company: POM Wonderful LLC
> Ad changed: Yes
> Settlement amount: Money not part of settlement
POM Wonderful ads promised consumers they could “cheat death” if they sipped the pomegranate juice. The drink, the ads said, “can help prevent premature aging, heart disease, stroke, Alzheimer’s, even cancer. Eight ounces a day is all you need.” Already in 2010, the FTC told the company to stop its deceptive advertising. POM Wonderful sued, but this month the FTC upheld the earlier decision that POM Wonderful made deceptive claims about the health benefits of its products and barred the manufacturers from making such claims. The FTC notes that in order for a food or drink manufacturer to make claims about health benefits, it would have to produce evidence from two randomized controlled trials, which the makers of POM have not done.
2. Skechers Shape-Ups
> Parent company: Skechers USA
> Ad changed: Yes
> Settlement amount: $40 million
Skechers line of Shape-Up shoes was just too good to be true. In May, the company agreed to pay $40 million to settle charges by the FTC and the attorneys general of 42 states. The FTC argued that advertising for Shape-Ups, along with Skechers’ similar Tone-Up and Resistance Runners, misled consumers into believing the shoes would help them slim down and tone their figures. One of the company’s misleading tactics involved a chiropractor who, in a TV ad, endorsed the shoes’ effectiveness based on a study. However, the company paid for the study and the chiropractor was married to a company’s marketing executive.
3. 5-Hour Energy
> Parent company: Living Essentials
> Ad changed: No
> Settlement amount: Lawsuit not settled
Advertisements claim that 5-Hour Energy drink will give an energy boost with “no crash later.” However, a recent study showed that 24% of participants consuming the drink experienced a “moderately severe crash that left them extremely tired and in need of rest, another drink or some other action.” When contacted by The New York Times, the manufacturer, Living Essentials, pointed out that the fine print on the bottle states that “no crash later” merely indicates no sugar crash. Of course not — the drink contains no sugar. This isn’t the first problem with 5-Hour Energy. It has also been in the news as the FDA investigates a series of 13 deaths over the past four years that may be linked to the product.
4. California Shelled Walnuts
> Parent company: Diamond Foods Inc.
> Ad changed: Yes
> Settlement amount: $2.6 million
Diamond Foods recently went too far when it claimed on its website and labels that the omega-3 fatty acids contained in its California Shelled Walnuts had positive health effects. According to the company, the fatty acids found in the walnuts prevent strokes and curb depression, among other things. But the FDA argued that such claims would make walnuts drugs, since only medications can make such health claims. In 2012, Diamond Foods agreed to pay $2.6 million to settle a separate class-action suit accusing the company of false advertising and agreed to discontinue the “heart health” statements on its packaging and website.
> Parent company: Apple
> Ad changed: N/A
> Settlement amount: N/A
Apple’s website states that Siri, the company’s voice-recognition and personal assistant software, “understands what you say. And knows what you mean.” But since its debut, most reviews of the service would seem to suggest that Siri is tin-eared. So much so that multiple disappointed Apple customers have filed lawsuits against the company. These lawsuits allege that the advertising campaigns touting Siri present a product with far greater capabilities than that sold to consumers. In a motion to dismiss one of the class-action complaints, Apple noted that claimants provided “only general descriptions of Apple’s advertisements, incomplete summaries of Apple’s website materials, and vague descriptions of their alleged — and highly individualized — disappointment with Siri.”