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May 16, 2012
For More Information, contact:
Luther Strange
Joy Patterson (334) 242-7491
Alabama Attorney General
Suzanne Webb (334) 242-7351
Jeff Sommer (334) 353-2199
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(MONTGOMERY) – Attorney General Luther Strange announced that Alabama
has joined 43 other states and the Federal Trade Commission in a settlement today with
Skechers USA, Inc., the makers of Shape-Ups, Tone-Ups, and the Skechers Resistance
Runner athletic shoes. Under the settlements, up to $40 million is being allocated for
consumer refund money to be paid back to consumers who purchased the shoes. As
part of the settlements, Skechers will pay an additional $5 million to the states.

Attorney General Strange said, “I am pleased we have reached this settlement
that will compensate consumers and hold Skechers to account for the unsubstantiated
claims made to its customers. I am proud of the work performed by our Consumer
Protection Unit to safeguard Alabamians from alleged fraud and deceptive practices.”

The lawsuit filed today by the Attorney General alleges that Skechers made
health-related claims in the marketing, packaging, advertising, offering, and selling of
its line of rocker-bottom shoe products including Shape-ups, Tone-ups, and the
Skechers Resistance Runner that were not adequately substantiated at the time the
claims were made.

The lawsuit alleges that without having adequate support for its claims, Skechers
claimed that these rocker-bottom shoe products caused consumers to lose weight, burn
calories, improve circulation, fight cellulite, and firm, tone or strengthen thigh, buttock,
and back muscles.

Skechers does not admit any wrongdoing and denies the factual allegations
asserted in the Attorney General’s complaint. Under the settlement, Skechers is
prohibited from making these claims unless it has adequate substantiation to do so.

Consumers who purchased Shape-Ups, Tone-Ups, or the Skechers Resistance
Runner should go to the FTC webpage www.ftc.gov/skechers for information about how
to obtain a partial refund. Consumers may also call the toll-free number 866-325-4186.

It is not known at this time how many consumers purchased these shoes in
Alabama, or the amount of money that will come to the State.
–more –
501 Washington Avenue Montgomery, AL 36104 (334) 242-7300
www.ago.alabama.gov Page 2 of 2

Along with Alabama, others participating in the settlement include the Federal
Trade Commission and the Attorneys General of Alaska, Arizona, Arkansas, California,
Colorado, Connecticut, Delaware, the District of Columbia, Florida, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan,
Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New
York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode
Island, South Carolina, South Dakota, Tennessee, Vermont, Virginia, Washington, West
Virginia, Wisconsin, the State of Hawaii’s Office of Consumer Protection, and the State
of Georgia’s Governor’s Office of Consumer Protection.

Alabamians who have concerns or complaints about consumer issues may
contact the Attorney General’s Consumer Protection Unit by calling 1-800-392-5658,
334-242-7335 or by visiting the website www.ago.state.al.us/Page-Consumer-