FTC to Refund NeuroMetrix Customers $3.9M in False Advertising Case

The Federal Trade Commission is sending 70,142 checks and PayPal payments totaling $3,864,824 to consumers nationwide who bought Quell, a wearable device that supposedly would treat chronic pain throughout the body when placed below the knee.
 
According to the FTC, Massachusetts-based NeuroMetrix Inc. and its CEO, Shai Gozani, sold Quell—a transcutaneous electrical nerve stimulation device—to consumers, touting it as “clinically proven” and “FDA cleared” for widespread chronic pain relief. The FTC says that the defendants lack scientific evidence to support widespread chronic pain-relief claims, and their claims about clinical proof and the scope of FDA clearance for this use are false.
 
Under an order settling the FTC’s charges, NeuroMetrix Inc. and its CEO agreed to pay $4 million to the Commission for refunds and to stop making the allegedly deceptive claims.
 
The FTC is sending 2,144 refund checks and 67,998 refunds via PayPal to consumers. The average refund amount is $55.10 per consumer. Those who receive checks should deposit or cash them within 60 days. If you receive a PayPal payment, you have 30 days to accept the payment. For more details about the PayPal payment process, please read the related FAQ. Consumers who do not receive a refund, but believe they should have, should contact the refund administrator, Rust Consulting, at 1-866-403-6545.
 
The FTC never requires consumers to pay money or provide information to cash refund checks. Recipients who have questions about this refund program should contact Rust Consulting at the number above.
 
The FTC’s new interactive dashboards for refund data provide a state-by-state breakdown of refunds. In 2019, FTC actions led to more than $373 million in refunds to consumers across the country.