Brand Developers cop $3m fine for breaching NutriBullet contract

Local infomercial mainstay Brand Developers has been ordered to pay Capital Brands just shy of $US3 million for selling products which were too similar to the Los Angeles-based company's NutriBullet blender after losing a distribution deal.

The television direct sales company, also known as TV Shop, had an exclusive distribution agreement with Capital Brands for the NutriBullet in Australia and New Zealand, Capital Brands said in a statement.

In April last year, distribution of the NutriBullet was taken over by CDB Goldair Australia. Brand Developers sells the NutriNinja range of blenders along with similar appliances NutriBlend and NutriInfusion.

James Ware, a retired US District Court judge in California, heard the arbitration trial on the issue in the US. Judge Ware ordered Brand Developers to pay Capital Brands $US2.95 million, plus attorney fees and costs, for breaching the exclusive distribution and licensing agreement between the parties by selling "nutrient extractor blenders" in direct competition with the NutriBullet.

"We feel vindicated by Judge Ware's decision to enforce our agreement and to award us damages," said Capital Brands' chief executive Colin Sapire. "Brand Developers was selling products that competed with our innovative and best-selling NutriBullet, in direct violation of the exclusivity provision of our contract."

Auckland-based Brand Developers is known for its informercials for products such as the Ab King Pro, Thin Lizzy, NutriNinja and the NutriBullet. In October, it was fined $153,000 by the Auckland District Court after falsely advertising that its Transforma ladder had a certified load rating of 180kg.

Brand Developers chief executive Paul Meier wasn't immediately available to comment.

(BusinessDesk)

Sophie Boot
Wed, 02 Mar 2016

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Brand Developers cop $3m fine for breaching NutriBullet contract