According to Gizmodo, PowerBalance admitted in 2010 that no scientific evidence supported its claims that its plastic wristbands increased wearers' strength, balance and sporting ability. The company admitted that it engaged in misleading conduct and that its claims were fraudulent.
The Australian Competition and Consumer Commission forced PowerBalance to admit its fraudulent behavior and product. PowerBalance had to pay $57 million to settle a lawsuit, and then the company filed for bankruptcy. The PowerBalance bracelet was a plastic bracelet that contained a hologram. PowerBalance claimed that bioresonating frequencies within the holograms improved athletes' performance and abilities. The bracelets failed numerous double-blind tests, and the company's claims of athletic benefits were disproven.