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ARKANSAS CONSUMERS TO RECEIVE REFUNDS IN SETTLEMENT WITH SKECHERS USA

LITTLE ROCK - Attorney General Dustin McDaniel announced today that Arkansas, other states and the federal government have reached an agreement with Skechers USA, Inc., to settle allegations that the company made unsubstantiated and unlawful claims about the health benefits of some of its athletic shoes.

McDaniel, attorneys general from 43 other states and the District of Columbia, and the Federal Trade Commission filed settlements today with Skechers, the makers of Shape-Ups, Tone-Ups, and the Skechers Resistance Runner shoes. Under the settlements, up to $40 million will be allocated for refunds to consumers who purchased those brands of shoes. Skechers will pay an additional $5 million to the settling states.

"Products purchased by Arkansas consumers should work as advertised, and if they do not, then companies should know that we will take action," McDaniel said. "Deceptive and misleading marketing isn't tolerated. I'm grateful for the work done by my office, the FTC and other attorneys general to reach this settlement."

McDaniel alleged that Skechers had no adequate support for its claims that its line of rocker-bottom shoe products caused consumers to lose weight, burn calories and firm, tone or strengthen thigh, buttock and back muscles. In its marketing, packaging, advertising, offering and selling of the shoes - Shape-ups, Tone-ups, and Skechers Resistance Runner - Skechers made health-related claims that were not substantiated at the time the claims were made, McDaniel alleged.

Consumers who purchased Shape-Ups, Tone-Ups, or the Skechers Resistance Runner should visit www.ftc.gov/skechers or call (866) 325-4186 for information about how to obtain a partial refund. Eligible consumers should receive a refund of approximately $20 for each pair of shoes purchased and covered under the settlement.

The State will receive $84,254 from the settlement.

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