Indiana along with the Federal Trade Commission and more than 40 states filed a settlement Wednesday with Skechers USA for falsely claiming its shoes caused consumers to lose weight, according to Indiana Attorney General Greg Zoeller.
“Today’s settlement agreement is important because it addresses concerns about the advertised benefits of wearing Skechers’ rocker-bottom product line of shoes,” Zoeller said in a statement. “Consumers ultimately pay the price for buying into companies’ misleading claims. That’s why this agreement provides for restitution to Skechers’ customers and some payments to the states.”
The multistate lawsuits and corresponding settlements filed separately alleges that Skechers made unsubstantiated health-related claims in the marketing, packaging, advertising, offering and selling of its line of rocker-bottom shoe products including Shape-ups, Tone-ups and the Skechers Resistance Runner.
According to the lawsuit filed in the Marion County Superior Court, Skechers claimed its products caused consumers to lose weight, burn calories, improve circulation, fight cellulite, and firm, tone or strengthen thigh, buttock and back muscles.
As part of the settlement, up to $40 million is being allocated for consumer refunds and Skechers will pay an additional $5 million to the states. Indiana is set to receive $105,691 and the monies will be dedicated to the Consumer Protection Fund, which provides for consumer education, training and litigation expenses.