Apple and Nike to pay back customers $15 cash or $25 gift card as settlement in Nike+ FuelBand class action suit

By MoneyTimes

Jul 27, 2015 09:51 AM EDT

Apple and Nike will reportedly settle the claim filed two years ago over a misleading ad about the exact capability of Nike+ FuelBand, offering either $15 cash or $25 gift cards on its stores in the U.S. and Puerto Rico.

Apple, the popular technology provider, and Nike, the American sportswear company, will settle a lawsuit claiming the Nike+ FuelBand faulty advertisement for its inaccurate health data tracking features, the Business Finance News reported.

Honorable William F. Highberger headed the lawsuit in Los Angeles under the Superior Court of the State of California, Case No. BC509363. Though the case that was filed two years ago is still being reviewed, the two companies have agreed on a settlement.

The proposed settlement will require Nike stores around the U.S. and Puerto Rico to give out $15 cash and $25 gift cards as refund. The $25 gift card has no expiry date and is transferable.

According to the Apple Insider, the claim implies that the plaintiffs, Carolyn Levin, was displeased over FuelBand's ads that claim to track the exact amount of calorie burn, user's steps for the whole day and overall fitness data through the NikeFuel.

Customers were misinformed about the real capacity of the fitness band over the incorrect promotion on TV, stores and online. The statement imposed that both companies had noticed the defect before it was released, yet they still proceeded to sell the activity tracker.

Apparently, Nike+ FuelBand customers who bought the fitness tracker from January 19, 2012 to June 17, 2015 can also file a damage suit. Action suit members can file protests by October 5, 2015.

Other employees and engineers from Apple and Nike were responsible for the case along with Jay Blahnik, a fitness expert who was consulted in the development of the FuelBand. Apple has been excluded to pay any cost for the liability of the settlement.

Based on the legal notice presented in the order of the Superior Court, the final hearing will be on November 4 at 1:30 p.m.

This must be the end of a long time partnership of Apple and Nike as Apple stops production and shipping of the FuelBand in March to focus on its own wearable, the Apple Watch.

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