Markets Wired

Following a public comment period, the Federal Trade Commission has approved two final orders settling charges that two companies, Norm Thompson Outfitters. Inc., and Wacoal America, Inc., misled consumers regarding the ability of their caffeine-infused shapewear undergarments to reshape the wearer’s body and reduce cellulite.

According to the FTC’s complaints, announced in September, the two companies’ marketing claims for their caffeine-infused products were false and not substantiated by scientific evidence.

In settling the charges, the companies are banned from claiming that any garment that contains any drug or cosmetic causes substantial weight or fat loss or a substantial reduction in body size. The companies also are prohibited from making claims that any drug or cosmetic reduces or eliminates cellulite or reduces body fat, unless they are not misleading and can be substantiated by competent and reliable scientific evidence.

The final orders also require the companies to pay $230,000 and $1.3 million, respectively, that the FTC can use to provide refunds to consumers.

The Commission vote approving each final consent order was 5-0. (FTC File Nos. 132-3094 and 132-3095; the staff contact is David Newman, FTC Western Region, San Francisco, 415-848-5123)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.