Wacoal Holdings Corp. said Tuesday it has officially reached a settlement with the U.S. Federal Trade Commission to pay $1.3 million (about ¥150 million) in refunds to buyers of its weight-loss underwear for women.
The Kyoto-based lingerie maker agreed in late September to refund buyers of the iPant underwear after the FTC dismissed as scientifically groundless its claims that ingredients such as caffeine and vitamin E used in the product reduce cellulite.
The company said then that it will continue to sell the underwear after reviewing related advertising.
Wacoal had already booked about ¥230 million for the settlement money and legal expenses in its group earnings report for fiscal 2013 ending last March.
Wacoal's U.S. unit has sold the underwear in more than 10 countries including the United States sincef 2011. The product is not sold in Japan.