Reebok International Ltd. will refund $25 million to customers who bought its popular toning shoes, in one of the largest settlements ever reached between a company and the federal government over deceptive advertising claims.
A complaint filed yesterday by the Federal Trade Commission said the Canton footwear makers ads frequently featured very toned, scantily-clad, and sometimes nude women who falsely said that the shoes had been shown to tighten muscles.
As part of the settlement, Reebok is barred from using such claims to market its toning merchandise. Toning shoes - sneakers designed with unstable soles so leg muscles have to work harder to maintain balance during everyday activities - were the fastest growing segment in the footwear industry last year, with sales soaring to $1.1 billion from $350 million in 2009, according to Matt Powell, an analyst with SportsOne Source. The sneakers were sold at a premium of roughly $100 a pair, though prices have dropped significantly in recent months because of an inventory glut.
