Monthly Archive for: ‘June, 2012’

FTC Settlement Costs Skechers $40 Million

Skechers USA, Inc. will pay $40 million to settle charges made by the FTC that Sketchers deceived consumers when it advertised that its Shape-ups shoes would help people lose weight, strengthen and tone their muscles, and improve their cardiovascular health. The FTC complaint also alleged that Skechers made similar claims about its Resistance Runner, Tones and Tone-ups shoes.

Consumers who bought any of these shoes will be eligible for refunds, either directly from the FTC or through a court-approved class action lawsuit.  

The FTC complaint charged that Skechers violated federal law by making deceptive advertising claims, including falsely representing that clinical studies backed up the claims. Under the FTC’s settlement, unless they are true and backed by scientific evidence, Skechers is barred from making any claims about strengthening, weight loss or any other health or fitness benefits, including claims regarding calorie burn, blood circulation, aerobic conditioning, muscle tone and muscle activation. Skechers also is barred from misrepresenting any tests, studies or research results regarding toning shoes.

The final judgment is available here.

FTC Oreck Refunds Total $698,000

The FTC is sending 27,339 checks totaling $698,000 to consumers who purchased Oreck Corporation’s Halo vacuum cleaner or ProShield Plus portable air cleaner. The refunds are the result of the settlement of the FTC complaint alleging that Oreck’s advertising for the products made false and unproven claims for the products.

The Halo is an upright vacuum with an ultraviolet light that shines onto the floor while vacuuming. The ProShield Plus is a portable air cleaner that filters air particles using an electrostatic charge. Oreck’s advertising made a number of claims for the products, including that they could reduce the risk of flu and other illnesses, and eliminate virtually all common germs and allergens.

Under the settlement reached with the FTC, Oreck is barred from making any of the allegedly deceptive claims challenged by the agency unless it has competent and reliable scientific evidence to support the claims.