WASHINGTON (AP) — Vacuum maker Oreck is expected to pay nearly $700,000 in refunds to consumers as part of a settlement with the Federal Trade Commission over false advertising claims.
Oreck claimed in advertisements that one of its vacuum cleaners and an air filter made by the company could reduce the risk of flu and other illnesses, as well as eliminate virtually all common germs and allergens.
Under the settlement announced Monday by the FTC, Oreck is barred from making any of these claims unless it has "competent and reliable scientific evidence" to support them.
A representative for Oreck Corp., based in Nashville, was not immediately available to comment.
Consumers who bought the Oreck Halo vacuum will receive $25 for each item purchased. Those who bought the Oreck ProShield Plus air cleaner will receive an average of $24.65 for each item.
The FTC said that it has identified the consumers eligible for refunds through sales records provided by the company. It is mailing 27,339 checks worth a total of $698,000 to consumers that should arrive this week.