Reebok Must Refund $25 Million to Buyers of Bogus 'Toning Shoes'
On Wednesday, the Federal Trade Commission ordered the sneaker company to pay $25 million in partial customer refunds -- calling the inflated fitness claims bogus. Consumers who bought shoes or apparel in the company's tone line after Dec. 4, 2008, can file a claim (with a proof of purchase) for a $25 to $50 refund.
"The FTC wants national advertisers to understand that they must exercise some responsibility and ensure that their claims for fitness gear are supported by sound science," David Vladeck, director of the FTC's Bureau of Consumer Protection, said in the statement.
While the FTC has made footwear companies knock off the shady science guarantees about more shapely legs, the shoe varieties continue to be popular, and they are comfortable, according to reviews on Zappos.com. Sports Business News anticipates the overall dollar revenue for the market segment drop 40% to around $650 million for 2011, but for now, unit sales are down only 5% as oversupply has packed the aisles with discounted toning kicks.
"[Reebok] will have to change its marketing story where benefits are not touted," suggests Powell. "They are comfortable and there is enough demand and consumer interest. But marketing story has to change."