NZ's Brand Developers ordered to pay US$3M for breaching NutriBullet contract

Tuesday 1st March 2016

Local infomercial mainstay Brand Developers has been ordered to pay Capital Brands just shy of US$3 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 United States. Ware ordered Brand Developers to pay Capital Brands US$2.95 million, plus attorney fees and costs, for breaching the exclusive distribution and licensing agreement between the parties by selling "nutrient extractor blenders" which were 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.co.nz

Comments from our readers

No comments yet