Certain customers of a business that “made unfounded claims” that its vacuum cleaners and air filters could turn a house into a virtually germ-free paradise can now expect a breath of fresh air in the form of a settlement check, the Federal Trade Commission announced.
Nashville-based Oreck Corporation claimed one of its “flu fighters,” the Halo vacuum, used ultraviolet light to “kill up to 99.9%” of bacteria, viruses, molds and allergens, plus “dangerous pathogens” like E. coli, salmonella and anthrax, according to an FTC complaint filed against Oreck last year.
Oreck advertised that its ProShield Plus air cleaner used electrostatic charges to kill many of the same bad actors, the complaint said.
Oreck settled with the FTC in 2011 and agreed to pay a $750,000 fine and stop making the claims.
Customers who bought the Halo vacuum, which retailed for $599.95, will receive $25. Those who purchased the $399.95 ProShield Plus air cleaner will get about $24.65.
The Federal Trade Commission reviewed company sales records to identify eligible customers. About 27,300 checks totalling $698,000 are being mailed and may have shown up in mailboxes as early as last week.
Oreck Corporation was founded in 1963 by Duluth native David Oreck.
For questions on the refunds call 877-772-6154.
More from Whistleblower
The Whistleblower column and blog are shutting down, but our commitment remains to investigating tips from readers.
A Baltimore couple and their company were ordered to pay back $616,000 to Spanish-speaking immigrants for immigration services that they were neither qualified nor authorized to provide, the Federal Trade Commission announced last week.
A company that labeled millions of Facebook users as a “jerk” or “not a jerk” is facing federal scrutiny after the agency said it improperly obtained information to create user profiles.
CenterPoint agreed last week to pay at least $192,500 to settle a lawsuit filed by the City of Minneapolis and various insurance companies after a gas explosion near a south Minneapolis Cub Foods in 2011.
A company accused of “mortgage scams” spent at least $2 million for a direct-mail campaign aimed at Minnesota veterans, according to the Minnesota Department of Commerce.