United States - Skechers Settles FTC Charges of Consumer Deception for $40 Million

Skechers USA, Inc. has agreed to pay $40 million to settle charges that it deceived people with ads claiming its Shape-ups and other “toning shoes” would help them lose weight and strengthen muscles. One allegedly deceptive ad campaign featured Kim Kardashian dumping her personal trainer for a pair of Shape-Ups. Others made claims about users experiencing more "muscle activation" from wearing Skechers compared to other sneakers. 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. The FTC complaint charges that Skechers violated federal law by making deceptive advertising claims, including falsely representing that clinical studies backed up the claims. This settlement is part of the FTC’s ongoing effort to stop overhyped advertising claims, and follows a similar settlement with Reebok International Ltd. last year. Under the FTC’s settlement, Skechers is barred from making any claims about strengthening, weight loss, or other health and fitness-related benefits from its toning shoes unless they are true and backed by scientific evidence. The settlement also bars Skechers from misrepresenting any tests, studies, or research results regarding toning shoes.