Skechers To Settle FTC Complaint
DAVID GREENE, HOST:
Now, Alaska is among more than 40 states that will receive some money from the shoe company Skechers. The Federal Trade Commission announced yesterday that Skechers will pay more than $40 million to settle charges that the company made unfounded claims about its Shape-up shoes, including that they can help people lose weight and tone muscles. The FTC says the marketing was deceptive. Skechers maintains it has a lot of happy customers who sport their Shape-ups.
Most of the settlement money will go toward consumer refunds. Buyers of Shape-ups and other Skechers toning shoes can file a claim on the FTC's website.
Last fall, Reebok agreed to pay $25 million to settle similar charges.
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