Skechers USA recently agreed to pay $40 million to settle charges brought against it by the Federal Trade Commission (FTC) based on the company’s claims that its toning shoes could provide beneficial weight loss and muscle toning results to consumers. In its complaint, the FTC charged Skechers with making false and deceptive claims about the health and fitness benefits that consumers could receive by using their toning shoes. In response, the company has agreed to settle by paying $40 million, much of which will be used to fund an account for consumer reimbursements.

The FTC alleges that many of the advertisements for Skechers toning shoes were false and deceptive in violation of the FTC Act, including the FTC’s Endorsement Guides.  Some of the advertisements specifically referenced include one featuring Kim Kardashian that aired during the 2011 Super Bowl. In that ad, the reality star is shown firing her personal trainer in exchange for a pair of Shape-ups. A separate advertisement featured chiropractor Dr. Steven Gautreau who provided his recommendation for the toning shoes and stated that he based his opinion on an “independent” clinical study he conducted on the shoes. Instead, the FTC claims that the doctor’s study did not produce the claimed results and that the doctor failed to reveal that he is married to a Skechers marketing executive and that he was paid to conduct the study.

As a result of these false and deceptive advertising techniques, consumers that purchased Skechers toning shoes, including Shape-ups, Resistance Runner, Toners, and Tone-ups shoes may be eligible to receive a reimbursement for the cost of the shoe by submitting a claim through the FTC’s website. The settlement is part of a much larger agreement that involved 44 states. In addition to the $40 million, Skechers is also barred from making any claims about strengthening, weight loss, and health and fitness-related benefits without proper scientific evidence attesting to the truthfulness of the claims. Further, the company must not misrepresent the findings of any tests, studies, or research it conducts with respect to its toning shoes.

This recent settlement is a sign of the FTC’s “ongoing effort to stop overhyped advertising claims.” All companies that market health and fitness related products should be aware of this settlement and should ensure that all of its claims are properly substantiated and qualified, where necessary. Additionally, any company including endorsements in its advertisements should be aware of the FTC’s Endorsement Guides and their disclosure requirements.

Arent Fox is continuing to monitor advertising-related issues. Please contact Anthony Lupo, Sarah Bruno, Matthew Mills, or Eva Pulliam with questions.