Skechers Ordered to Shape Up & Pay $40 Million for False Ads

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Note to Skechers: Magic shoes exist in fairytales. In the real world, it takes more than ramped up rubber soles to shed pounds.

On Wednesday, the Federal Trade Commission announced Skechers‘ (NYSE:SKX) health claims about its Shape-ups and other toning footwear lines are false.

The FTC complaint charges that Skechers violated federal law by making deceptive advertising claims, including falsely representing that clinical studies backed up the claims. The shoemaker has not admitted to wrongdoing, but has agreed to pay a $40 million fine to settle charges. The payment will go toward refunding consumers who bought the shoes.

Since it launched its athletic shoes with rocker-shaped soles, Skechers has hired celebrities with brick-house bodies like Brooke Burke and Kim Kardashian to convey that wearing toning sneakers will result in a lean, tone physique. FTC says those claims are simply not true.

“Skechers’ unfounded claims went beyond stronger and more toned muscles. The company even made claims about weight loss and cardiovascular health,” David Vladeck, Director of the FTC’s Bureau of Consumer Protection said in a press release. “The FTC’s message, for Skechers and other national advertisers, is to shape up your substantiation or tone down your claims.”

Skechers was the market leader in the toning footwear but not the only company to experience backlash over advertising methods. Last September, Reebok was ordered to refund consumers $25 million over false claims surrounding its line of toning shoes.

One company that won’t be dealing with lawsuits about toning footwear is NIKE (NYSE:NKE). Execs at the shoe giant are probably patting themselves on the back for refusing to jump on the toning trend.

There is a special website concerning the basic facts of the settlement and a place where consumers can file for a refund if they are eligible.


Article printed from InvestorPlace Media, https://investorplace.com/2012/05/skechers-ordered-to-shape-up-pay-40-million-for-false-ads/.

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