Reebok to refund $25M over 'toning' claimsReebok agreed to refund $25 million to customers who bought its popular EasyTone and RunTone shoes as part of a settlement with the Federal Trade Commission, which says the company did not have the science to back its "better way to a better butt" claims. The settlement, which must be approved in court, prohibits Reebok from making further unsubstantiated claims regarding the strengthening and toning benefits of the shoes. Reebok started making the pitch in print, television and Internet advertisements in 2009 but pulled the ads in the midst of the FTC probe.
Durable-goods orders rose 1.1% last monthOrders for U.S. capital goods climbed in August by the most in three months, a sign business investment continues to support the recovery. Bookings for goods like computers and communications gear, excluding military hardware and aircraft, climbed 1.1 percent, the most since May, a Commerce Department report showed. Demand for all durable goods dropped 0.1 percent, less than forecast. Manufacturers continue to benefit from sales to China, India and other emerging markets even as they face a slowdown in domestic spending.
FDIC to bring case against Discover over feesDiscover Financial Services said U.S. regulators plan to bring an enforcement case over how the credit-card lender marketed fee-based products. The Federal Deposit Insurance Corp., which regulates firms that accept customer deposits, decided to press the claim after investigating the bank's marketing practices, Riverwoods, Ill.-based Discover said in a quarterly filing. Minnesota Attorney General Lori Swanson sued the company in December 2010, claiming that Discover telemarketers failed to tell consumers when they were agreeing to purchase optional, fee-based services.
Regulators to look into BNSF pricing practicesBurlington Northern Santa Fe, purchased by Warren Buffett's Berkshire Hathaway Inc. last year, is facing scrutiny by the federal government after complaints that the railroad tried to pass on $7.6 billion in acquisition costs to shippers. The Surface Transportation Board said it will examine regulatory effects of the price Berkshire paid for Fort Worth, Texas-based Burlington Northern, including the railroad's rates.
J&J buys Merck's half of heartburn businessJohnson & Johnson bought Merck & Co.'s half of the companies' joint venture for over-the-counter medicines for heartburn and digestive diseases for $175 million, ending a 22-year partnership in the U.S. and Canada. The deal includes a manufacturing plant in Lancaster, Pa., that is part of a consent decree with U.S. regulators because of production violations. J&J, based in New Brunswick, N.J., will continue to sell the Pepcid, Mylanta and Mylicon brands, the company said.
Judge orders US Air pilots to end slowdownIn a setback for US Airways' pilots union, a federal judge in Charlotte, N.C., ordered the group to halt a work slowdown that the company says has disproportionately delayed flights at the Charlotte airport. The U.S. Airline Pilots Association, also based in Charlotte, had vigorously denied a slowdown was occurring, despite a statistical analysis from a US Airways expert purporting to show certain flights were delayed far more often than they should have been for any other reason.
Refinancings boost mortgage applicationsMortgage applications rose last week as near record-low borrowing costs boosted refinancing. The Mortgage Bankers Association's index increased 9.3 percent in the period ended Sept. 23 from the prior week, the Washington-based group reported. The group's refinancing gauge rose 11 percent, while its purchase index increased 2.6 percent. Americans are taking advantage of the lower rates to reduce monthly payments as consumer confidence, employment and incomes stagnate.
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