Nike Inc. will be offering the owners of FuelBand fitness trackers a partial refund as a response to a lawsuit filed against the company. People who bought FuelBands in the last 3 1/2 years will receive partial refunds of $15 or $25 gift cards. Gilardi & Co., a firm that administers settlements, is maintaining a website on behalf of Nike to distribute the refunds to customers who bought FuelBands between Jan. 19, 2012 and June 17, 2015.
The FuelBand fitness tracker was launched Nike in 2012. The wristband tracks the user’s movement throughout the day and users can set daily goals for how much movement that they want to achieve. The wristband includes a pedometer and a clock and users can connect the band wirelessly to a smartphone app to see their results in detail.
The lawsuit claimed that the wearable FuelBands are not accurate when calculating how many steps a user is taking or how many calories they’ve burned. The lawsuit said Nike engaged in false advertising because it knew the devices could not track movements as accurately as claimed. The lawsuit also alleged breaches of the terms of the devices’ warranty
Nike has denied the allegations in the lawsuit. Nike agreed to settle the matter with the partial refunds instead of continuing to fight the case in the courts. Exact sales figures for the device haven’t been disclosed by the company, but indications are that the devices aren’t selling as well as expected. Last year, Nike laid off employees working on the devices but released a statement saying that the company would continue to make them.
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