Reebok to Pay $25 Million Over False Advertising Claims

October 01 00:00 2011

New York, October 1 ( – The Federal Trade Commission (FTC) fined Reebok $25 million dollars for claims about misleading advertisements. The company had launched the famous and controversial ReeTone collection of shoes which were supposedly capable of improving the appearance of customers backsides.

Ever since its launch in 2009, the shoe range has been a runaway bestseller despite the global recession, showing that the market had demand if the product was good enough. It soon created a $1.1 billion market for itself worldwide. Reebok claimed that the shoe forced the wearer to exert more pressure on their calf and gluten muscles thereby improving their shape in the normal routine without special exercise.

However reebok did not consider the facts that walking too much after wearing these shoes could exert too much pressure on a muscle group on a daily basis and cause injury. Many people ended up with shin splits, twisted ankles and sore muscles. The shoes also forced the user to exert more force just to maintain balance.

Reebok officials said that they do not agree with the FTC that they have made false claims but have agreed to pay the damages for other business reasons. Meanwhile the image of Reebok as a brand has taken a severe hit in the highly competitive sportswear market.