Apparel Co. Tommie Copper Reaches $1.4M Settlement with FTC

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Early this month, the Federal Trade Commission announced that it had reached a settlement with Tommie Copper, a support wear company endorsed by talk show host Montel Williams, in the amount of $1.35 million. The FTC lawsuit alleged false advertisement and deceptive business practices.

Less than a week after the FTC filed the lawsuit against Tommie Copper Inc. and founder Thomas Kalish in New York federal court, the parties reached an agreement to settle the claims.

According to the false advertising lawsuit, Tommie Copper marketed the compression wear claiming that the garments alleviate pain associated with multiple sclerosis and arthritis. The company claimed that the garments infused with copper could help the pain associated with various diseases with more success than drugs or surgery.

In a statement issued by the FTC earlier this month, the federal agency said it will require Kalish and Tommie Copper to back up medical claims with “competent and reliable scientific evidence before making future claims about pain relief, disease treatment or health benefits.”

The FTC’s lawsuit claimed that consumers were misled by Tommie Copper to believe that the copper that was woven into the garments would reduce their pain associated with various medical conditions and physical injuries. The complaint also said that Montel Williams claimed the pain from multiple sclerosis, a condition he reportedly suffers from, could be alleviated by wearing the Tommie Copper garments.

The FTC claims that the company sold the compression wear from about $30 to about $70 per item and made $87 million from the sale of the products between 2011 and 2014.

According to the FTC, the court order against Tommie Copper imposed an $86.8 million judgment in total, but the amount would be partially suspended once the company paid the $1.35 million. If it turns out that Tommie Copper misrepresented its finances, the company would be responsible for the total amount.

In summarizing the FTC’s stance on claims made by companies to alleviate physical maladies, the Director of the FTC’s Bureau of Consumer Protection, Jessica Rich, stated, “It’s tempting to believe that wearing certain clothing will eliminate severe pain, but Tommie Copper didn’t have science to back its claims. If you see an ad for a product that promises to replace the need for drugs or surgery, talk to a healthcare professional before you spend your money.”

In addition to the false advertising lawsuit filed by the FTC, Tommie Copper is facing two other potential class action lawsuits as well. Allegations in the class actions claim that the ads were misleading and violated warranty, consumer protection laws and unfair business laws. A U.S. District Court in New York is considering consolidation of the similar lawsuits.

The FTC is represented by Jonathan E. Neuchterlein, Carolyn L. Hann, Tawana E. Davis and Robin E. Eichen.

The Tommie Copper FTC Lawsuit is the Federal Trade Commission v. Tommie Copper Inc., et al., Case No.7:15-cv-09304, in the U.S. District Court for the Southern District of New York.

The Tommie Copper Consumer Class Action Lawsuits are Lucero, et al. v. Tommie Copper Inc., et al. and Potzner v. Tommie Copper Inc., Case Nos. 1:15-cv-06055 and 7:15-cv-03183, in the U.S. District Court for the Southern District of New York.