Power Balance Australia owner Tom O'Dowd admitted to SmartCompany that while he had been "naive" in thinking that the business would not by subject to laws surrounding the regulation of health products.
The rubber wristbands that contain a magnet, are supposed to work by optimising the wearer's natural energy fields using special holograms. Power Balance claims the products improve the wearer's balance, strength and flexibility. The bands were originally marketed in Australia with the phrase "performance technology".
To the surprise of no thinking person the company is heading steadily for bankruptcy. Kudos to the Australian Competition and Consumer Commission, which forced Power Balance Australia to admit that it has not conducted "double blind" scientific testing to back up the product's claimed benefits.
That's one down and many to go...