Skechers Could Pay $75 Million in Shape-Ups Settlement
Photo: Skechers.com
A Skechers Shape-Ups settlement over toning claims could cost the company an arm and a leg.
The backlash against Skechers Shape-Ups isn’t over yet.
Footwear News reports that the Federal Trade Commission is expected to find the footwear company liable for false and deceptive advertising after it’s been proven that the supposedly “toning” shoes do no such thing.
“Based on discussions with the FTC staff, the company does not believe that the FTC’s pending inquiry into the company’s toning products will likely end in a closure letter assuring no further regulatory action,” Skechers said in a statement.
Translation: The FTC won’t just look the other way in this case—and considering Reebok’s similar EasyTone shoe controversy resulted in a $25 million settlement, Skechers is expecting to be hit hard.
Sterne Agee analyst Sam Poser told Footwear News that he predicted a settlement range for Sketchers between $50 and $75 million.
“Given Reebok’s settlement, and the nine or so civil lawsuits pending against Skechers regarding the toning products, we would be quite surprised if Skechers came out of its current predicament unscathed,” he said.
In related news, Skechers came under fire earlier this year for promoting Shape-Ups for young girls.
