Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Muscle Marketing USA fined $70,000 for false claim

Muscle Marketing USA fined $70,000 for false claims about sports performance product

Muscle Marketing USA Limited has been fined $70,000 in the Auckland District Court today for breaching the Fair Trading Act in relation to its sports performance enhancing product ATP Advantage Creatine Serum.

In sentencing, Judge Everitt said that Muscle Marketing's claims about its product were so far from actual reality that it was a very bad case of a misleading statement. "The company was highly culpable. On a scale of 1-10 it was 8."

The Commerce Commission investigated claims that Muscle Marketing USA was making false representations in promotional material and labelling regarding the quantity of creatine in its ATP Advantage Creatine Serum product and the benefits that people would get from using it.

Creatine is a nutrient that is synthesised from food by our bodies. It provides the energy muscles need to move and is often used by athletes to improve their sports performance.

Fair Trading Director Deborah Battell said that in the Commission's view, Muscle Marketing USA falsely represented that 5ml of its serum yielded the equivalent of 2500mg of creatine.

"Tests conducted on the serum showed that 5mls of the product contained only around 11.5mg of creatine. This means that on the basis of Muscle Marketing USA's recommended daily dose of 5mls a day, athletes would not be able to obtain the benefits as represented.

"A 150ml bottle of the serum retails for $119.95. This is a significant outlay, particularly when people are paying this price based on misleading representations" Ms Battell said.

"It's another example of a product where consumers are utterly reliant on claims being made by the company because they have no realistic means of checking the actual composition or effectiveness of the product," said Ms Battell.

In sentencing, Judge Everitt commented that people will always have pride in their appearance and are vulnerable to this kind of marketing. The Act is designed to create fair trading and to protect the public from "snake oil people and the like", he said.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news