Skechers' Sketchy Claims Result in a $40 Million Fine

Washington, DCIt turns out that Skechers was an unfortunate name for a shoe company made to eat $40 million worth of crow at the behest of the Federal Trade Commission (FTC). That's because of allegations surrounding false and misleading claims related to their shoe line. While this was not a Skechers Shape-Up lawsuit and Skechers was not required to admit to any wrongdoing, the $40 million fine implies just that.

Some consumers of the Skechers shoe line unrelated to claims of false and misleading advertising, have suffered skechers injuries.

CNN carried a report Wednesday (5/16/12) summarizing the FTC case against Skechers and their shoe line—specifically the Shape-Ups line. The Commission, following an extensive investigation, leveled charges that Skechers made "unfounded claims that Shape-Ups would help people lose weight, and strengthen and tone their buttocks, legs and abdominal muscles," according to the CNN report.

The FTC will file a complaint when it has reason to believe federal laws governing accuracy and fairness in advertising are, or have been violated. To that end the extensive investigation—involving the FTC and attorneys general from 44 states and the District of Columbia—found evidence of Skechers false advertising.

One example cited in the report was the endorsement of a chiropractor denoting the results of an independent clinical study, the results from which, alleged the FTC, were not factual. The chiropractor was also compensated for his endorsement and is also married to a marketing executive employed by Skechers. The FTC noted the television ads promoting the virtues of Skechers toning shoes, did not reveal those conflicts.

Other marketing efforts involved Kim Kardashian, who appeared in a memorable television campaign during the 2011 Super Bowl.

"'Skechers' unfounded claims went beyond stronger and more toned muscles," said David Vladeck, director of the FTC's Bureau of Consumer Protection, in comments published in the online CNN report. "The company even made claims about weight loss and cardiovascular health."

The Commission also cited the company for Skechers false adverting claims related to Resistance Runner, Toners and Tone-Up shoes, as well as Shape-Ups.

Anyone having purchased Skechers toning shoes will be eligible for a refund from the FTC directly, or by way of a court-approved class action skechers shape-up lawsuit.

Some consumers have found their Skechers shoes to have failed them in the pursuit of weight loss and muscle toning. Other consumers have suffered grievous Skechers injuries related to changes in an individual's normal walking gait, resulting from use of the shoes.

Toning footwear is a huge market, worth close to $1 billion in estimated sales for 2010. Shape-Ups, introduced a year earlier, caught fire quickly. Despite a cost of between $60 and $100 per pair, the FTC noted that Skechers quickly grew to become an industry leader by 2010.

There is no mention of the settlement on the Skechers web site. Plaintiffs have filed Skechers lawsuits, or serve as participants in a class action and cite false and misleading claims together, in some cases, with injuries involving ankles, knees and hips.