FTC Reaches $25M Settlement With Reebok For Unsubstantiated Advertising Claims

The FTC yesterday announced a $25M settlement with Reebok over what "it said were unsubstantiated claims about the exercise benefits of its 'toning shoes,'" according to Jayne O'Donnell of USA TODAY. The FTC said that Reebok made "'unsupported' claims in advertisements that walking and running in its shoes strengthen and tone key legs and buttock muscles more than regular shoes." Reebok in a statement said, "We fully stand behind our EasyTone technology." Under the settlement, Reebok is "barred from making any claims that its products strengthen muscles unless they are 'backed by scientific evidence.'" Consumers who "bought Reebok toning shoes or EasyTone apparel on or after Dec. 5, 2008, are eligible for refunds" (USA TODAY, 9/29). The FTC Bureau of Consumer Protection Dir David Vladeck "praised Reebok for its cooperation in the matter," noting that the company "pulled the advertising in question 'sometime in the middle of our investigation.'" The FTC "did not provide an estimate of how many Reebok toning shoes were sold" (CHICAGO TRIBUNE, 9/29). Vladeck "declined to say whether investigators would pursue other manufacturers of toning sneakers." But in N.Y., Andrew Martin notes the "punishment -- unusually severe for the agency -- has shaken an industry already struggling with inventory pileups and lawsuits challenging the truth of its fitness claims." Sales of toning footwear "topped $1 billion last year," but in the "first eight months of this year, sales were off 46 percent compared to the same period a year earlier" (N.Y. TIMES, 9/29).

MORE OF THE SAME: In Boston, Jenn Abelson notes Reebok is the "first manufacturer to settle false advertising charges over toning shoes, but others also are under scrutiny." Skechers, "the largest toning brand with about half the market, disclosed in a securities filing last month that the FTC is reviewing its advertising claims." Meanwhile, in a lawsuit by a California woman, New Balance is accused of "deceiving customers by promising its toning shoes create more sculpted legs than traditional walking sneakers" (BOSTON GLOBE, 9/29). Nike Dir of Global Corporate Communications Mary Remuzzi said, "Our position has always been consistent. We believe there is no toning without training and we have not been willing to compromise on performance, stability and flexibility in terms of our products." A current "glut of toning shoes in the market," has resulted in sales revenue "that is 40 percent lower than this time last year," while unit sales are down just 7% (Portland OREGONIAN, 9/29).