Power Balance Admits No Reasonable Basis for
Wristband Claims, Consumers Offered Refunds
Australian Competition and Consumer Commission
News Release, December 22, 2011
Misleading advertising claims about the alleged benefits of Power Balance wristbands and pendants have been withdrawn by the manufacturer after Australian Competition and Consumer Commission intervention.
As a result consumers will be offered a refund if they feel they have been misled and Power Balance has agreed not to supply any more products that are misleadingly labelled.
Power Balance Australia Pty Ltd claimed the wristbands improve balance, strength and flexibility and worked positively with the body's natural energy field. It also marketed its products with the slogan "Performance Technology". The ACCC raised concerns that these claims were likely to mislead consumers into believing that Power Balance products have benefits that they do not have.
"Suppliers of these types of products must ensure that they are not claiming supposed benefits when there is no supportive scientific evidence," ACCC chairman Graeme Samuel said today.
"Consumers should be wary of other similar products on the market that make unsubstantiated claims, when they may be no more beneficial than a rubber band," Mr Samuel said.
Power Balance has admitted that there is no credible scientific basis for the claims and therefore no reasonable grounds for making representations about the benefits of the product. Power Balance has acknowledged that its conduct may have contravened the misleading and deceptive conduct section of the Trade Practices Act 1974.
The Power Balance wristbands were widely promoted in the media by various sporting celebrities. The wristbands were sold around Australia in sporting stores and also on the Power Balance website www.powerbalance.com.au
"When a product is heavily promoted, sold at major sporting stores, and worn by celebrities, consumers tend to give a certain legitimacy to the product and the representations being made," Mr Samuel said.
"Retailers that continue to sell the product with misleading representations on the packaging are warned that they may be open to action from the ACCC," Mr Samuel said.
To address the ACCC's concerns Power Balance has provided the ACCC with court-enforceable undertakings that it will:
- only make claims about its products if they are supported by a written report from an independent testing body that meets certain standards
- publish corrective advertising to prevent consumers from being misled in the future
- amend the Australian website to remove any misleading representations
- change the packaging to remove any misleading representations
- offer a refund to any consumers that feel they have been misled, and
- remove the words "performance technology" from the band itself.
Consumers with refund enquiries can call Power Balance on 1800 733 436.
The ACCC has previously taken court action against a number of alternative health providers, including Advanced Allergy Elimination and NuEra, for misleading and deceptive conduct.
- Mr Graeme Samuel, Chairman, (03) 9290 1812 or 0408 335 555
- Mr Brent Rebecca, Media, (02) 6243 1317 or 0408 995 408
- Infocentre 1300 302 502
Release # NR 284/10
Issued: 22nd December 2010
This page was posted on January 4, 2011.