Thursday, May 17, 2012
Settlement with Sketchers USA Inc.
New York Attorney General Eric Schneiderman announced a record $45 million dollar nationwide settlement with Skechers, USA, Inc. to end the deceptive marketing of its footwear products including Shape-Ups, Tone-Ups, and the Skechers Resistance Runner athletic shoes. Under the settlements reached with New York, 44 states and the Federal Trade Commission, up to $40 million is being allocated for refunds to be paid back to consumers who purchased the shoes, and Skechers will pay an additional $5 million to the states.
This settlement forces Skechers to ‘shape up’ by ceasing to make unsubstantiated health and medical claims for their so-called toning shoes. New Yorkers who purchased these shoes as a result of Skechers’ deceptive marketing practices will now be eligible for refunds.