$40 Million Skechers Settlement Just a Drop in the Bucket
The Federal Trade Commission announced that Skechers, Inc. has agreed to pay $40 million to settle charges that the company deceived consumers by making unfounded claims that Shape-ups would help people lose weight, and strengthen and tone their buttocks, legs and abdominal muscles.
Brooke Burke Super Bowl Ad
The Burke ad told consumers that the newest way to burn calories and tone and strengthen muscles was to tie their Shape-ups shoe laces.
Skechers Refund Settlement
ftc.gov/skechers gives consumers the basic facts about the Skechers settlement and directs them to file for a refund if they are eligible.
Skechers Still Massively Profitable
The potential for a fine from the FTC was probably included in Skechers business and marketing plans. That green number is quite large. There is no financial incentive for advertisers like Skechers to tell the truth.
Reeeealy Ugly Shoes
Shape-ups: They are UGLY and they will NOT get you in shape. Thank you for playing.
Kim Kardashian
Airing during the 2011 Super Bowl, the Kardashian ad showed her dumping her personal trainer for a pair of Shape-ups.
Shape-ups Claims
Skechers made unsupported claims that Shape-ups would provide more weight loss, and more muscle toning and strengthening than regular fitness shoes
Federal Trade Commision
Skechers also made deceptive claims about its Resistance Runner, Toners, and Tone-ups shoes, the FTC alleged.
Besides Shape-ups, Skechers also made deceptive claims about its Resistance Runner, Toners, and Tone-ups shoes, the FTC alleged.
Consumers who bought these “toning” shoes will be eligible for refunds either directly from the FTC or through a court-approved class action lawsuit.
“Skechers’ unfounded claims went beyond stronger and more toned muscles
The company even made claims about weight loss and cardiovascular health,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “The FTC’s message, for Skechers and other national advertisers, is to shape up your substantiation or tone down your claims.”
The settlement with the Manhattan Beach, California-based Skechers is part of the FTC’s ongoing effort to stop overhyped advertising claims, and follows a similar settlement with Reebok International Ltd. last year.
The Skechers advertisements challenged by the FTC include:
A Shape-ups ad telling consumers to “Shape Up While You Walk,” and “Get in Shape without Setting Foot in a Gym,” and claiming that the shoes are designed to promote weight loss and tone muscles.
The FTC alleges that Skechers made unsupported claims that Shape-ups would provide more weight loss, and more muscle toning and strengthening than regular fitness shoes.
Shape-ups ads with an endorsement from a chiropractor named Dr. Steven Gautreau, who recommended the product based on the results of an “independent” clinical study he conducted that tested the shoes’ benefits compared to those provided by regular fitness shoes.
The FTC alleges that this study did not produce the results claimed in the ad, that Skechers failed to disclose that Dr. Gautreau is married to a Skechers marketing executive, and that Skechers paid Dr. Gautreau to conduct the study.
Shape-ups ads featuring celebrities including Kim Kardashian and Brooke Burke.
Airing during the 2011 Super Bowl, the Kardashian ad showed her dumping her personal trainer for a pair of Shape-ups.
The Burke ad told consumers that the newest way to burn calories and tone and strengthen muscles was to tie their Shape-ups shoe laces.
An ad that claims consumers who wear Resistance Runner shoes will increase “muscle activation” by up to 85 percent for posture-related muscles, 71 percent for one of the muscles in the buttocks, and 68 percent for calf muscles, compared to wearing regular running shoes.
The FTC alleges that in citing the study that claimed to back this up, Skechers cherry-picked results and failed to substantiate its ad claims.
Television personality Brooke Burke appeared in a Shape-ups commercial touting the shoes' beneficial effects on fitness and appearance.
Skechers was the market leader in the toning footwear category.
Industry shoe sales peaked in 2010, with sales close to $1 billion.
Shape-up fitness shoes, which Skechers introduced in April 2009, cost consumers about $100 a pair.
Resistance Runner, Toners, and Tone-ups became available in mid-2010, and retailed for $60 to $100 a pair.
The FTC complaint charges that Skechers violated federal law by making deceptive advertising claims, including falsely representing that clinical studies backed up the claims. Under the FTC’s settlement,
Skechers is barred from making any of the following claims for its toning shoes unless they are true and backed by scientific evidence:
- claims about strengthening;
- claims about weight loss; and
- claims about any other health or fitness-related benefits from toning shoes, including claims regarding
- caloric expenditure
- calorie burn
- blood circulation
- aerobic conditioning
- muscle tone
- muscle activation.
The settlement also bars Skechers from misrepresenting any tests, studies, or research results regarding toning shoes.
www.ftc.gov/skechers gives consumers the basic facts about the Skechers settlement and directs them to file for a refund if they are eligible.
SOCIAL CHATS: FTC staff will answer the public's questions about the settlement online May 16, 2012 from 2:00 p.m. to 2:30 p.m. ET @FTC on Twitter and ask questions using the hashtag #FTCbcp.
Questions can also be posted to the FTC's Facebook page.
