Kim Kardashian Skechers FTC $50M Fine

An ad featuring Kim Kardashian shoes made by sneaker maker Skechers USA was deemed false-advertisement by the Federal Trade Commission and now the company has settled the case for $50 million.

The ad claimed that Kardashian ditched her trainer after wearing sneakers called “Shape-Ups.” In addition, Hall of Fame quarterback Joe Montana claimed that by wearing the sneakers improved his strength and posture. Another product by Skechers called the Tone-Up was advertised by Brooke Burke stating that the sneakers firmed up her bottom side.

The Federal Trade commission cited the claims did not live up to the hype.

Skechers agreed to settle with the FTC for $50 million, which will be refunded to the consumers who bought the sneakers that cost anywhere from $60 to $100 a pair. It is not yet been worked out how consumers will get a refund.

“Unfortunately, for the millions of people who bought Skechers toning shoes, the only thing that got a workout was their wallet,” said David Vladeck, director of the FTC’s Bureau of Consumer Protection.

Reebok, who created a similar sneaker with the same claims, had to pay a $25 million settlement with the trade commission.

Skechers President Michael Greenberg defended his product by saying, “The company has received overwhelmingly enthusiastic feedback from literally thousands of customers who have tried our toning shoes for themselves and have written unsolicited testimonials about their positive experiences.”

Due to an oversupply, Skechers is expected to re-introduce the Shape-up and Tone-up line now that it has settled.

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