Weight Watchers vs. Jenny Craig: The Ad War

VIDEO: Weight Watchers sues Jenny Craig, alleging false advertising.

Whenever one of those television commercials comes on that shows a "fatty" that has become a "hottie" with no effort while eating a ton of marvelous food like fettuccini and chocolate cake, I stop to watch. I'm not immune to vanity. I want to look like a movie star, and if someone promises me I can look this way without giving up my day job or selling my soul, I'm listening. But is harm done if the ads are misleading?

Critics argue that some diet companies and their ad agencies seek to promote economic activity more than they desire to provide the objective information necessary for consumers to evaluate products and services on their merits. They argue Jenny Craig has been one of the worst offenders.

Jenny Craig wants overweight customers enough to spend more on advertising than Weight Watchers, the market leader, and take it on in a comparative ad, but enough to mislead consumers? That's the claim of Weight Watchers, whose lawsuit thrust the battle into the headlines.

The dispute is over a TV spot for Jenny Craig in which spokeswoman Valerie Bertinelli states a "major clinical trial" has shown that Jenny Craig clients lost, on average, twice as much weight as those on the largest weight-loss program. Weight Watchers, countered that the ads are false and Jenny Craig did not conduct a "major clinical trial." Last week, a federal judge issued a temporary restraining order prohibiting Jenny Craig from running the ads.

Jenny Craig has grown its business through aggressive advertising and the use of celebrities. Last year, from January through November, the company spent a category-leading $65 million on ads. This has been an effective strategy, though some of its claims have been disputed by lawsuits and questioned by federal regulators.

Since incorporating in 1983, Jenny Craig has used celebrity endorsers such as Elliot Gould, Queen Latifah, Kirstie Alley, Monica Lewinsky, in addition to Bertinelli. The corporation spends heavily on advertising, and franchises have long been required to spend 10 percent of their receipts on advertising. In 1990, Jenny Craig (along with competitor Nutrisystem) was named in a class action that alleged that weight loss programs like theirs contributed to gall bladder disease. The claims were settled -- the companies did not admit wrongdoing -- but they prompted the Federal Trade Commission to begin investigating the companies.

VIDEO: Weight Watchers sues Jenny Craig, alleging false advertising.

In 1993, ongoing investigations by the FTC into the advertising and promotional practices of the diet industry prompted the government to question whether clients could maintain weight loss after dieting, and doctors started to talk about the harmful effects of yo-yo dieting. In 1997, the government began requiring Jenny Craig to stipulate in its advertising that "for many dieters, weight loss is temporary." Testimonials had to be accompanied by a disclaimer: "Results not typical. You may be less successful." Also, Jenny Craig was forced to publish the average weight loss its customers experienced and to provide scientific data supporting future claims.

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