The $45 million agreement reached between the Federal Trade Commission and shoemaker Skechers USA, Inc., has a major Tennessee component.
The Tennessee Attorney General Office, joined by its peer AG office in Ohio, spearheaded the effort for 42 states and the District of Columbia. Under the settlement agreement, Skechers — accused of deceptive advertising related to claims of improved health and appearance (and using Kim Kardashian and Brooke Burke to showcase their shapes) — will pay $40 million, to be refunded to consumers who purchased Shape-Ups, Tone-Ups, and the Skechers Resistance Runners. It is the largest such pool in history for an advertising substantiation case. As part of the settlements, Skechers will pay an additional $5 million to the states.
Under the settlement, which Davidson County Circuit Court Judge Hamilton Gayden Jr., signed Wednesday, Skechers is prohibited from making future claims unless it has adequate substantiation to do so.
Skechers does not admit any wrongdoing and denies the factual allegations asserted in the attorney general’s complaint.