The New York Personal Injury Blog

Skechers Settlement: $40 Million Via the 'Honor System'

"We think most consumers are honest," Dana Barragate, a Federal Trade Commission attorney told the Los Angeles Times.

Well, thanks for the compliment.

Why the compliment? It has to do with the Skechers settlement. In short, Skehers made claims that their rounded platform shoes, also known as "Shape-Ups," "Resistance Runners," "Tone-ups," and "Toners," would give you a body like Kim Kardashian. Or maybe they would give you the endurance of some Hall of Fame Quarterback named Joe Montana.

Or some such type of claim.

And all of this magic was supposed to happen without actually going to the gym.

According to the FTC, the claims amounted to false advertising. Skechers says that they paid to avoid the potential costs of litigation.

Kim Kardashian's Skechers Advertisement

After all, to reference Kanye West, what's $40 mill to a company like Skechers Inc.? They reportedly made more than a billion on the shoes in 2010 alone.

More on the settlement: If you purchased the shoes, you can file a claim at www.skecherssettlement.com. It's as easy as filling out the online form and passing along any documentation you might have or details about the purchase.

And thank goodness, if you purchased the shoes with cash, you can still probably get a settlement. Note that you do still have to sign a paper swearing that you really did purchase the shoes -- that is where the honesty of the consumer comes in.

The guesstimate, according to the FTC site, is a partial refund of between $40 to $80 per pair of Shape-Ups.

False advertising claims are based on laws that require companies not to lie when promoting products. However, making opinion statements that no reasonable person would rely upon as fact is called "puffing" and does not qualify, nor do advertisements meant as parody. Skechers' point of view is probably that no reasonable person would believe that these shoes would give them Kim K's posterior and that the advertisements were meant to be funny.

Now they tell me ...

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