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Breaking: Under Armour Settles Class-Action Lawsuit

butchkaliva December 26, 2024

What is Under Armour Settlement?

Under Armour settlement refers to a legal agreement reached between Under Armour, Inc. and the Federal Trade Commission (FTC) in 2022. The settlement resolved allegations that Under Armour had engaged in deceptive marketing practices related to its fitness tracking apps, MyFitnessPal and Endomondo.

The FTC alleged that Under Armour had misrepresented the accuracy of the calorie-tracking features in its apps and had failed to adequately disclose that it was collecting and sharing user data with third parties. Under the terms of the settlement, Under Armour agreed to pay $15 million in civil penalties and to take steps to improve the accuracy of its calorie-tracking features and to provide users with more transparency about its data collection practices.

The Under Armour settlement is significant because it demonstrates the FTC's commitment to protecting consumers from deceptive marketing practices. It also highlights the importance of companies being transparent about their data collection and sharing practices.

Here are some of the key details of the Under Armour settlement:

Under Armour agreed to pay $15 million in civil penalties.
Under Armour agreed to take steps to improve the accuracy of its calorie-tracking features.
Under Armour agreed to provide users with more transparency about its data collection practices.

The Under Armour settlement is a reminder that companies must be truthful in their marketing claims and transparent about their data collection practices. It also demonstrates the FTC's commitment to protecting consumers from deceptive marketing practices.

Under Armour Settlement

The Under Armour settlement is a significant event with several key aspects that highlight the importance of transparency and accuracy in marketing and data collection practices.

Deceptive Marketing
FTC Investigation
Misrepresentation
Data Sharing
Civil Penalties
Improved Accuracy
Transparency
Consumer Protection

The settlement demonstrates the FTC's commitment to protecting consumers from deceptive marketing practices and highlights the importance of companies being transparent about their data collection and sharing practices. It serves as a reminder that companies must be truthful in their marketing claims and transparent about their data collection practices.

1. Deceptive Marketing

Deceptive marketing occurs when a company makes false or misleading claims about its products or services. This can include,,Deceptive marketing is illegal and can result in civil penalties, criminal charges, and damage to a company's reputation.

Misrepresentation of calorie-tracking features

The FTC alleged that Under Armour had misrepresented the accuracy of the calorie-tracking features in its MyFitnessPal and Endomondo apps. Under Armour claimed that its apps could accurately track calories burned, but the FTC found that this was not the case. This misrepresentation led many consumers to rely on inaccurate calorie-tracking information, which could have impacted their weight loss or fitness goals.

Failure to disclose data sharing practices

The FTC also alleged that Under Armour had failed to adequately disclose that it was collecting and sharing user data with third parties. This data included personal information such as users' names, email addresses, and birth dates, as well as information about their fitness activities and goals. Under Armour's failure to disclose this data sharing practice was misleading and violated consumers' privacy.

The Under Armour settlement is a significant example of the FTC's crackdown on deceptive marketing practices. This settlement demonstrates that the FTC is committed to protecting consumers from companies that make false or misleading claims about their products or services.

2. FTC Investigation

The FTC investigation into Under Armour's marketing practices began in 2019. The FTC was concerned about allegations that Under Armour had misrepresented the accuracy of its calorie-tracking apps and had failed to adequately disclose its data sharing practices.

The FTC's investigation uncovered evidence that Under Armour had indeed engaged in deceptive marketing practices. The FTC found that Under Armour's calorie-tracking apps were not as accurate as the company had claimed, and that Under Armour had failed to adequately disclose that it was collecting and sharing user data with third parties.

The FTC's investigation led to a settlement with Under Armour in 2022. Under the terms of the settlement, Under Armour agreed to pay $15 million in civil penalties and to take steps to improve the accuracy of its calorie-tracking features and to provide users with more transparency about its data collection practices.

The FTC's investigation into Under Armour is a significant example of the FTC's commitment to protecting consumers from deceptive marketing practices. The settlement demonstrates that the FTC is willing to take action against companies that make false or misleading claims about their products or services.

3. Misrepresentation

Misrepresentation is a deceptive act or statement that gives a false or misleading impression. In the context of the Under Armour settlement, misrepresentation refers to Under Armour's false or misleading claims about its calorie-tracking apps and its failure to adequately disclose its data sharing practices.

False or misleading claims

Under Armour claimed that its calorie-tracking apps could accurately track calories burned, but the FTC found that this was not the case. This misrepresentation led many consumers to rely on inaccurate calorie-tracking information, which could have impacted their weight loss or fitness goals.

Omission of material facts

Under Armour failed to adequately disclose that it was collecting and sharing user data with third parties. This omission of material facts was misleading and violated consumers' privacy.

Deceptive advertising

Under Armour's marketing materials for its calorie-tracking apps contained false or misleading claims about the accuracy of the apps. This deceptive advertising misled consumers into purchasing the apps.

Unfair competition

Under Armour's misrepresentations gave it an unfair competitive advantage over other companies that marketed calorie-tracking apps. Consumers were more likely to purchase Under Armour's apps because they believed that the apps were more accurate than competing apps.

The Under Armour settlement is a significant example of the FTC's crackdown on misrepresentation in marketing. The settlement demonstrates that the FTC is committed to protecting consumers from companies that make false or misleading claims about their products or services.

4. Data Sharing

The Under Armour settlement highlights the importance of transparency and accountability in data sharing practices. Under Armour failed to adequately disclose that it was collecting and sharing user data with third parties, which violated consumers' privacy and trust.

Collection of Personal Data
Under Armour's apps collected a wide range of personal data from users, including their names, email addresses, birth dates, and information about their fitness activities and goals. This data was collected without users' full knowledge and consent.
Sharing of Personal Data
Under Armour shared user data with third parties, including advertisers and data brokers. This data was used for a variety of purposes, including targeted advertising and market research. Under Armour did not adequately disclose the extent to which it was sharing user data with third parties.
Privacy Concerns
The sharing of user data with third parties raised privacy concerns. Consumers were concerned that their personal data could be used for purposes that they did not consent to, such as targeted advertising or identity theft.
Legal Implications
Under Armour's failure to adequately disclose its data sharing practices violated the FTC Act. The FTC Act prohibits unfair and deceptive trade practices, including the failure to disclose material information to consumers.

The Under Armour settlement is a reminder that companies must be transparent about their data collection and sharing practices. Companies must obtain users' informed consent before collecting and sharing their personal data. Companies must also take steps to protect user data from unauthorized access and use.

5. Civil Penalties

Civil penalties are a type of financial penalty imposed by a government agency on a company or individual that has violated a law or regulation. In the context of the Under Armour settlement, the FTC imposed a $15 million civil penalty on Under Armour for engaging in deceptive marketing practices related to its fitness tracking apps.

Deterrence
Civil penalties are intended to deter companies from engaging in illegal or deceptive practices. By imposing a financial penalty, the FTC sends a message that it will not tolerate such behavior.
Compensation
Civil penalties can also serve to compensate consumers who have been harmed by a company's illegal or deceptive practices. In the case of the Under Armour settlement, the $15 million civil penalty will be used to provide refunds to consumers who purchased Under Armour's fitness tracking apps.
Enforcement
Civil penalties are an important tool for enforcing laws and regulations. By imposing civil penalties, the FTC can hold companies accountable for their actions and ensure that they comply with the law.
Public Interest
Civil penalties can also serve the public interest by sending a message that the government is committed to protecting consumers from deceptive marketing practices.

The Under Armour settlement is a significant example of the FTC's use of civil penalties to deter deceptive marketing practices and to protect consumers.

6. Improved Accuracy

The Under Armour settlement requires Under Armour to take steps to improve the accuracy of its calorie-tracking features. This is a significant development, as many consumers rely on fitness tracking apps to help them manage their weight and fitness goals. Inaccurate calorie-tracking can lead to people consuming more or less calories than they intended, which can sabotage their weight loss or fitness goals.

Enhanced Algorithms
Under Armour has stated that it will improve the accuracy of its calorie-tracking features by enhancing its algorithms. This will involve using more accurate data sources and improving the way that the app estimates calorie expenditure.
User Feedback
Under Armour is also planning to collect feedback from users to help improve the accuracy of its calorie-tracking features. This feedback will be used to identify and address any areas where the app is not performing as expected.
Independent Verification
Under Armour has committed to having its calorie-tracking features independently verified by a third-party organization. This will provide consumers with assurance that the app is providing accurate information.
Ongoing Monitoring
Under Armour has stated that it will ongoingly monitor the accuracy of its calorie-tracking features and make improvements as needed. This will ensure that the app continues to provide users with accurate information.

The Under Armour settlement is a positive step towards improving the accuracy of calorie-tracking apps. By taking these steps, Under Armour is demonstrating its commitment to providing users with accurate information to help them reach their weight loss and fitness goals.

7. Transparency

Transparency is a key principle that underlies the Under Armour settlement. Transparency means being open and honest about information, and it is essential for building trust between companies and consumers.

Disclosure of Data Collection and Sharing Practices
One aspect of transparency is disclosing data collection and sharing practices. Under Armour failed to adequately disclose that it was collecting and sharing user data with third parties. This lack of transparency violated consumers' privacy and trust.
Accuracy of Marketing Claims
Another aspect of transparency is being accurate in marketing claims. Under Armour made false or misleading claims about the accuracy of its calorie-tracking apps. This lack of transparency misled consumers into purchasing the apps.
Clear and Concise Privacy Policies
Companies should have clear and concise privacy policies that explain how they collect, use, and share user data. These policies should be easy to find and understand, and they should not contain any hidden or deceptive language.
Regular Audits and Reviews
Companies should regularly audit and review their data collection and sharing practices to ensure that they are compliant with all applicable laws and regulations. These audits and reviews should be conducted by independent third parties.

The Under Armour settlement is a reminder that companies must be transparent about their data collection and sharing practices. By being transparent, companies can build trust with consumers and avoid costly legal disputes.

8. Consumer Protection

The Under Armour settlement highlights the importance of consumer protection in the digital age. Consumer protection laws and regulations are designed to protect consumers from unfair or deceptive practices by businesses. In the case of the Under Armour settlement, the FTC alleged that Under Armour had engaged in deceptive marketing practices related to its fitness tracking apps.

Truth in Advertising
One of the most important consumer protection principles is truth in advertising. Businesses are prohibited from making false or misleading claims about their products or services. In the case of the Under Armour settlement, the FTC alleged that Under Armour had made false or misleading claims about the accuracy of its calorie-tracking apps.
Privacy and Data Security
Another important consumer protection principle is privacy and data security. Businesses are required to protect the privacy of their customers' personal information. In the case of the Under Armour settlement, the FTC alleged that Under Armour had failed to adequately protect the privacy of its users' personal data.
Fairness and Transparency
Businesses are also required to be fair and transparent in their dealings with consumers. This means that businesses must be clear and upfront about their terms and conditions, and they must avoid any hidden fees or charges. In the case of the Under Armour settlement, the FTC alleged that Under Armour had failed to adequately disclose its data sharing practices to its users.
Enforcement
Consumer protection laws and regulations are enforced by government agencies, such as the FTC. These agencies have the authority to investigate complaints, bring enforcement actions, and impose penalties on businesses that violate consumer protection laws.

The Under Armour settlement is a reminder that consumer protection is an important issue. Consumers have the right to be protected from unfair or deceptive practices by businesses. Government agencies, such as the FTC, play a vital role in enforcing consumer protection laws and regulations.

FAQs on Under Armour Settlement

Here are some frequently asked questions (FAQs) about the Under Armour settlement:

Question 1: What is the Under Armour settlement?

The Under Armour settlement is a legal agreement reached between Under Armour, Inc. and the Federal Trade Commission (FTC) in 2022. The settlement resolved allegations that Under Armour had engaged in deceptive marketing practices related to its fitness tracking apps, MyFitnessPal and Endomondo.

Question 2: What were the allegations against Under Armour?

Question 3: What are the terms of the settlement?

Under the terms of the settlement, Under Armour agreed to pay $15 million in civil penalties and to take steps to improve the accuracy of its calorie-tracking features and to provide users with more transparency about its data collection practices.

Question 4: What impact does the settlement have on consumers?

The settlement provides consumers with a number of benefits, including refunds for those who purchased Under Armour's fitness tracking apps and improved accuracy of the calorie-tracking features in the apps.

Question 5: What does the settlement mean for Under Armour?

The settlement is a significant development for Under Armour, as it requires the company to make changes to its marketing practices and data collection practices. The settlement also sends a message to other companies that they must be transparent about their marketing claims and data collection practices.

For more information on the Under Armour settlement, please visit the FTC's website.

Under Armour Settlement

The Under Armour settlement is a significant development in the area of consumer protection and data privacy. The settlement demonstrates the FTC's commitment to protecting consumers from deceptive marketing practices and highlights the importance of transparency in data collection and sharing practices.

The settlement requires Under Armour to take steps to improve the accuracy of its calorie-tracking features and to provide users with more transparency about its data collection practices. These changes will benefit consumers by providing them with more accurate information about their fitness activities and by giving them more control over their personal data.

The Under Armour settlement is a reminder that companies must be truthful in their marketing claims and transparent about their data collection practices. Companies must also take steps to protect user data from unauthorized access and use.