velaform-sauna-belt.jpg The Competition Bureau of Canada has announced that the Toronto based Northern Response International Ltd has been asked to pay $400,000 in penalties over the promotion of the Velform Sauna Belt. The Commissioner of Competition has said that the claims of the company in the product's commercials and infomercials were false and misleading under the Competition Act as these were not based on adequate and proper testing as required. A consent agreement has been reached by the two parties.

Highlights of the agreement
a. The company has agreed to offer full refunds to customers who purchased this belt.
b. It has also agreed to broadcast a corrective notice on television and stop using "unsubstantiated" claims to promote and sell the product.
c. The commercials and infomercials of this belt claimed this waist belt can lead to substantial and effortless weight loss by melting fat and cellulite.
d. The company did not conduct any independent tests to ascertain the efficacy of the belt.
e. This agreement also prohibits the company from reselling the returned Velform Sauna Belts in Canada or any other jurisdiction.
f. This consent agreement was filed with the Competition Tribunal on October 22, 2008.
g. The belt was sold for approximately $99 USD