Jenny Craig to Pull Ad in Deal with Weight Watchers

(Dow Jones Newswires) – Weight Watchers International Inc. on Friday settled a dispute with Jenny Craig Inc. involving ads the diet company called "false and misleading." Jenny Craig agreed to pull them.

Last month, Weight Watchers filed a federal suit against its rival involving a campaign that stated a head-to-head scientific study supported the contention that Jenny Craig's prepackaged-meals system was superior to the Weight Watchers program.

Weight Watchers said it was pleased Jenny Craig wouldn't be allowed to continue the ad campaign. President and Chief Executive Officer David Kirchhoff added the settlement served the public interest by working to ensure the accuracy of weight-loss ads.

Under the terms of the settlement, Jenny Craig said it paid no damages, fees or costs and admits no wrongdoing of any kind. By settling, it said it wouldn't compare the results of Jenny Craig's clinical trials to Weight Watchers' past trial results.

"If Weight Watchers refuses to take up our challenge to compete head-to-head in a new trial, we suggest that they offer consumers up-to-date rigorous clinical studies to support the advertising of their current program," Jenny Craig CEO Patti Larchet said.

She added the company continued to stand behind the results of its own clinical trial, and said it would share the results of the next phase of that trial when they become available.