Infomercial Firms Face Off in Court: Flyer vs. Strider
By Lisa Brownlee
Staff Reporter of The Wall Street Journal
Two of the biggest players in the infomercial business have locked horns in court over the sale of trendy exercise devices for
power walking.
As a result, National Media Corp. is temporarily barred from airing its Fitness Strider infomercial in the U.S.
The legal fight started last month when Guthy-Renker Corp., based in Palm Desert, Calif., sued National Media in state and
federal courts in Los Angeles, accusing the Philadelphia company of breach of contract and marketing knockoffs of the
popular Fitness Flyer, which both companies had been selling under an earlier agreement. National Media began selling the
Fitness Strider, a competing aerobic exerciser, in December after encountering a delay in stocking the Fitness Flyer. The
cases seek compensatory and punitive damages.
Meanwhile, National Media filed its own suit in state court in Los Angeles against Guthy-Renker, claiming the company
failed to provide an adequate supply of the Fitness Flyer. The suit seeks compensatory and punitive damages, as well as a
court order for Guthy-Renker to deliver more of the hot-selling product.
Closely held Guthy-Renker is expecting its sales of the Fitness Flyer, introduced in October, to reach $100 million by the
end of this year, said Ben Van de Bunt, executive vice president.
The judge in the federal case filed by Guthy-Renker issued a temporary order this week blocking National Media from airing
its Fitness Strider infomercial domestically. In a news release, National Media said the order is effective until March 14.
Separately, National Media named Frederick S. Hammer, 61 years old, chairman, succeeding Ira M. Lubert, who will
remain a director. Mr. Hammer is a partner of Inter-Atlantic Securities Corp., a New York investment-banking concern.
National Media also announced its biggest international expansion yet, extending its programming to 67 million households
in Russia, Belarus and Ukraine. In New York Stock Exchange composite trading, National Media's shares closed at $10, up
25 cents. |
