Skechers Settles False Advertising Suit for $45 Million

Skechers has agreed to pay $40 million, plus $5 million in attorneys’ fees, to settle a class action lawsuit alleging that the company deceived its customers by making unsupported claims that its sneakers would help people lose weight and tone muscles.

These ads claimed that customers could “shape up while you walk” and “get in shape without setting foot in a gym.”

The Federal Trade Commission and consumer groups alleged that Skechers violated federal law by making deceptive advertising claims, including falsely representing that clinical studies supported the health benefits of the shoes.

Skechers was the market leader in the so-called toning footwear category. Industry shoe sales peaked in 2010, with almost $1 billion in sales. Shape-Up Fitness Shoes, which Skechers introduced in April 2009, carried a price tag of about $100 a pair. Resistance Runner and Tone-Ups hit the market in mid-2010 and retailed for $60 to $100 a pair.

Skechers had engaged in a massive advertising campaign to promote its toning shoes. The company hired celebrities Kim Kardashian and Brooke Burke to appear in television commercials, one of which aired during the 2011 Super Bowl. These ads claimed that customers could “shape up while you walk” and “get in shape without setting foot in a gym.”

Under the settlement agreement, customers who purchased the shoes can receive a partial refund – up to $80 per pair of Shape-Ups, $84 per pair of Resistance Runners, and $40 per pair of Tone-Ups. Under the terms of the settlement, checks will be issued to class members by July 13.