FTC fines Razer for every cent made selling bogus "N95 grade" RGB masks
In November 2021, the Justice and Consumer Protection Agency of Hamburg, Germany sent Razer a letter telling the firm that it opened an inquiry about the Zephyr's health claims, the FTC said. Razer stopped selling the mask in the European Union on December 13, 2021, after receiving a follow-up letter, but continued selling the device in the US.
Fewer than 6 percent of US customers refunded ... so far
On January 13, 2022, after pressure from reviewers and Razer's global PR director, Razer publicly backtracked on its claims. In an email to customers, Razer said that while the Zephyr's filters were "tested for 95 percent Particulate Filtration Efficiency (PFE) and 99 percent Bacterial Filtration Efficiency (BFE) ... the wearable by itself is not a medical device nor certified as an N95 mask." Razer also said it would remove all references to "N95 Grade Filter" from marketing materials. However, the FTC said that only customers who bought the mask from Razer's website or provided their emails to physical Razer stores when buying a mask received the email.
Further, Razer's email reportedly failed to mention that the company offered full refunds. Due to Razer declining refunds for users outside the 14-day purchase window or who had used or opened the mask and/or filters, Razer reportedly refunded fewer than 6 percent of Zephyr purchases in the US.
However, the proposed settlement against Razer includes a $100,000 civil penalty, plus $1,071,254.33, which the FTC said is equal to the amount of revenue Razer made from the Zephyr and will go toward refunding "defrauded consumers."
[Update 5/3/2024, 4:14 p.m. ET: Razer spokesperson Will Powers responded to Ars Technica's request for comment, saying that Razer disagrees with the FTC's claims and didn't admit to any wrongdoing. The statement added:
“It was never our intention to mislead anyone, and we chose to settle this matter to avoid the distraction and disruption of litigation and continue our focus on creating great products for gamers. Razer cares deeply about our community and is always looking to deliver technology in new and relevant ways.The Razer Zephyr was conceived to offer a different and innovative face covering option for the community. The FTC’s claims against Razer concerned limited portions of some of the statements relating to the Zephyr. More than two years ago, Razer proactively notified customers that the Zephyr was not a N95 mask, stopped sales, and refunded customers."]