UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF OIDO 

EASTERN DIVISION 

FEDERAL TRADE COMMISSION, 

Plaintiff, Docket No. 

v. 

SKECHERS U.S.A., INC., d/b/a SKECHERS, Judge 

Defendant. 

COMPLAINT FOR PERMANENT INJUNCTION 

AND OTHER EQIDTABLE RELIEF 

Plaintiff, the Federal Trade Commission (FTC), for its Complaint alleges: 

I. Plaintiff FTC brings this action under Section 13(b) of the Federal Trade 

Commission Act (FTC Act), 15 U.S.c. § 53(b), to obtain preliminary and permanent injunctive 

relief, rescission or reformation of contracts, restitution, the refund of monies paid, disgorgement 

of ill-gotten monies, and other equitable relief for Defendant's acts or practices, in violation of 

Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52, in connection with Defendant's 

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and 1345, and 15 U.S.C. §§ 45(a), 52, and 53(b). 

3. Venue is proper in this district under 28 U.S.C. § 1391(c), and 15 U.S.C. § 53(b). 

PLAINTIFF 

4. The FTC is an independent agency of the United States Government created by 

statute. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), 

which prohibits unfair or deceptive acts or practices in or affecting commerce. The FTC also 

enforces Section 12 of the FTC Act, 15 U.S.C. § 52, which prohibits false advertisements for 

food, drugs, devices, services, or cosmetics in or affecting commerce. 

5. The FTC is authorized to initiate federal district court proceedings, by its own 

attorneys, to enjoin violations of the FTC Act and to secure such equitable relief as may be 

appropriate in each case, including rescission or reformation of contracts, restitution, the refund 

of monies paid, and the disgorgement of ill-gotten monies. 15 U.S.C. § 53(b). 

DEFENDANT 

6. Defendant Skechers U.S.A., Inc. (Skechers), is a Delaware corporation with its 

principal place of business at 228 Manhattan Beach Blvd., Manhattan Beach, California 90266. 

Skechers transacts or has transacted business in this district and throughout the United States. At 

all times material to this Complaint, acting alone or in concert with others, Skechers has 

advertised, marketed, distributed, or sold footwear products, including purported toning footwear 

products, to consumers throughout the United States. 

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THE TONlNG FOOTWEAR INDUSTRY 

8. "Toning" shoes - shoes that purportedly provide health and fitness benefits, such 

as toning and strengthening muscles in the lower body - have been described as the fastest 

growing trend in footwear through 2010. Unlike traditional athletic shoes, which are designed to 

provide the wearer with support, toning shoes are designed to create slight instability. 

Companies offering toning shoes generally contend that the instability the shoe causes will force 

muscles to work harder, resulting in benefits such as weight loss and muscle toning, shaping, and 

strengthening. 

9. It has been reported that toning shoe sales in the United States increased from 

$17 million in 2008 to approximately $145 million in 2009. Toning shoe sales peaked in 2010 

with sales close to $1 billion. 

DEFENDANT'S BUSINESS ACTIVITIES 

10. Defendant has advertised, marketed, distributed, offered for sale, and sold 

purported toning footwear products, including the Shape-ups product line since at least April 

2009, and Resistance Runner, Toners, and Tone-ups since approximately the summer of2010. 

11. Consumers can purchase Shape-ups walking shoes for approximately $100, and 

Resistance Runner, Toners, and Tone-ups from approximately $60 up to approximately $100, 

from various third parties, such as Famous Footwear, Finish Line, Lady Foot Locker, Dillard's, 

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media: print advertisements and inserts in newspapers distributed nationwide; print 

advertisements in nationally disseminated magazines, such as 0, The Oprah Magazine, People, 

and InStyle; the Internet, including websites owned or operated by or on behalf of Skechers, such 

as www.skechers.com, www.myshapeups.com, and on Facebook, Twitter, and YouTube; and 

television commercials on nationally syndicated television programs, such as "Oprah," and on 

numerous national cable television networks, including ESPN, Nickelodeon, and FIT TV. 

13. To induce consumers to purchase its Shape-ups footwear products, Defendant has 

disseminated or caused to be disseminated advertisements, including, but not necessarily limited 

to, the attached Exhibits 1 through 4. These advertisements frequently display women and men who are well-toned, and contain the following statements or depictions, among others: 

A. SHAPE UP WHILE YOU WALK. 

(Exhibits 1,3; see also Exhibit 4 at p. 1.) 

B. GET IN SHAPE WITHOUT SETTING FOOT IN A GYM. 

(Exhibits 1, 3; see also Exhibit 4 at p. 3.) 

C. Shape-lips will help you lose weight 

and improve your circulation, creating a 

healthier you! 

(Exhibit 4 at p. 2.) 

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E. Television and Internet Advertisement: Super Bowl Ad 2011, "Break 

Up 2 Shape Up" 

[Kim Kardashian, wearing fonn-fitting exercise apparel, in an exercise 

room with her personal trainer] 

[T]hings just aren't working out. Well, that's not completely true. I'm 

working out. It's not someone else. It's something else [camera moves to 

her Shape-ups shoes]. Bye, bye trainer. Hello, Shape-ups. 

(Exhibit 2, transcript; Exhibit 2A, CD-ROM) 

F. Television and Internet Advertisement: "Newest Move" 

[Actress Brooke Burke, at home with her children] 

The newest move in fitness is tying your shoelaces. Because once my 

Skechers Shape-ups are on snug and comfy, I'm toning my muscles, 

strengthening my core, burning calories. Why? Because Shape-ups really 

work. No matter what I do, or what they [camera pans to children] do. 

Skechers Shape-ups. Step into your new body. 

(Exhibit 2, transcript; Exhibit 2B, CD-ROM) 

G. "After performing a six-week clinical trial testing the benefits 

of SKECHERS Shape-ups, I am confident in recommending 

them to patients to increase their low back endurance 

and improve gluteal strength. Patients also benefited [sic] from 

weight loss and improved body composition." 

- Dr. Steve Gautreau, California 

(Exhibits 1,3; Exhibit 4 at p. 2.) 

H. Shape-lips are designed to help 

you strengthen your muscles, 

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shoes!* 

Doctors and researchers have confirmed that walking in Shape-ups can 

have major benefits on our health, including: 

• More toned and strengthened leg, back, buttock 

and abdominal muscles 

• Reduced body fat • Improved circulation, aerobic conditioning 

and exercise tolerance 

• Improved posture, relieving muscle tension 

and back/joint problems. 

* * * 

*These independent case studies were commissioned by SKECHERS. Results may vary from 

person to person. For the greatest results, walking in Shape-ups should be combined with a 

proper diet and regular exercise regimen. 

(Exhibit 4 at p. 5.) 

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* * * 

RESULTS 

The average results for Shape-ups wearers included: 

• 2.78 Ibs. of weight loss (vs. 0.30 Ibs. for the control group) 

• A 1.31% reduction of body fat (vs. 0.57% for the control group) 

• A 114% improvement in glutei, hamstring and gastrocnemius muscles 

(vs. 68% for the control group) 

• A 23% improvement in low back endurance strength 

(vs. 0.04% for the control group) 

These findings allow us to conclude that a Shape-lips walking program 

can improve fi1ness markers such as weight loss, improved body 

composition and certain muscle strength gains. 

*These independent case studies were commissioned by SKECHERS. Results may vruy from person 

to person. For the greatest results, walking in Shape-ups should be combined with a proper diet and 

regular exercise regimen. 

(Exhibit 4 at p. 7.) 

14. Defendant has represented that the clinical studies conducted on the Shape-ups footwear 

products were independent case studies. In fact, two of the four studies conducted on the Shape-ups 

footwear products were conducted by chiropractor Steven Gautreau, who is or was a compensated 

endorser for Shape-ups, and who is married to a senior vice president of marketing at Skechers. 

15. The first study Dr. Gautreau conducted purportedly was a six-week study with eight 

participants. Defendant reported that tile study showed that participants wearing Shape-ups footwear lost 

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16. The second study Dr. Gautreau conducted purportedly was an eight-week study with 

eighty participants. Defendant reported that the study showed that participants wearing Shape-ups 

footwear lost an average of 2.78 pounds, compared to 0.30 pounds for the control group that wore 

standard fitness shoes, and reduced their body fat 1.31 %, compared to 0.57% for the control group that 

wore standard fitness shoes. Defendant further represented that the study allowed for the conclusion that 

a Shape-ups walking program can improve fitness markers such as weight loss and improved body 

composition. In fuct, the study has numerous defects. The data relied upon during the study were altered 

and incomplete: some participants wearing the Shape-ups footwear gained weight and/or increased their 

body fat percentage, but were falsely reported as having lost weight and/or reduced their body fat 

percentage; two subjects who were in the control group and lost weight had their data falsely attributed to 

the Shape-ups group; and data were missing or not collected for some of the study's participants. In 

addition, some of the study's participants were connected to the researchers: the wives of two of the 

study's co-authors, the parents of one of the study's co-authors, and employees of and/or persons 

associated with Dr. Gautreau. 

Resistance Runner 

17. Defendant has advertised its Resistance Runner running shoes through a variety of media, 

including print advertisements in nationally disseminated magazines and on the Internet at websites 

owned or operated by or on behalf of Skechers, such as www.skechers.com and 

www.1oinTheResistance.com. and on YouTube. 

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JOIN 

THE RESISTANCE 

85% 

HELPS INCREASE 

ACTN ATION UP TO 85% 

68% 

HELPS INCREASE 

ACTN ATION UP TO 68% 

(Exhibit 5.) 

* * * 

71% 

HELPS INCREASE 

GLUTEUS MEDIUS 

ACTN ATION UP TO 71 % 

13.2% 

HELPS BURN UP 

TO 13.2% 

MORE CALORIES 

19. In fact, each muscle activation percentage cited by Defendant is based on the readings 

from a single subject in a one-day study, and thus none is representative of what conswners could 

reasonably expect to achieve from wearing Resistance RlUlller. 

Shape-ups Toners 

20. Defendant has advertised its Shape-ups Toners wallcing shoes through a variety of media, 

including print advertisements in nationally disseminated magazines and on the Int=et at websites 

owned or operated by or on behalf of Skechers, such as www.skechers.com. and on YouTube. 

21. To induce conswners to purchase its Shape-ups Toners, Defendant has disseminated or 

caused to be disseminated advertisements, including, but not necessarily limited to, the attached Exhibit 6. 

111ese advertisements contain the following statements, among others: 

Page 9 of 17 
CALF 

MUSCLES 

(Exhibit 6 at p. 1.) 

THIGH 

MUSCLES 

BUTTOCK 

MUSCLES 

C. EXPERTS AGREE YOU'LL SEE RESULTS 

Leading podiatrists, fitness experts and medical research have confirmed that 

walking often in the proper footwear may reduce stress, increase weight loss, relieve tension, tone muscles and bum calories. Shape-ups Toners with Kinetic 

Toning Pods are designed to help you walk with a positive impact, change the 

way you approach exercise, and enhance the way you feel. 

(Exhibit 6 at p. 2.) 

D. Ideal for busy women for all ages, Shape-ups Toners may help bum more 

calories, improve agility, strengthen calf and thigh muscles, fum your buttocks 

and increase general fitness, without an additional time commitment. 

(Exhibit 6 at p. 4.) 

22. Defendant did not conduct product-specific studies of Shape-ups Toners. 

Tone-ups 

23. Defendant has advertised its Tone-ups footwear through a variety of media, including 

print advertisements in nationally disseminated magazines and on the Internet at websites owned or 

operated by or on behalf of Skechers, such as www.skechers.com. and on Y ouTube. 

24. To induce consumers to purchase its Tone-ups footwear, Defendant has disseminated or 

caused to be disseminated advertisements, including, but not necessarily limited to, the attached Exhibit 7 

pertaining to its Tone-ups slip-on shoes, and Exhibit 8 pertaining to its Tone-ups fitness shoes. These 

advertisements contain the following statements, among others: 

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• huprove posture 

(Exhibit 7 at p. 1.) 

C. [Tone-ups sandals] are a great new way to help tone your legs, get more exercise 

and lose weight while you walk! 

(Exhibit 7 at p. 1.) 

D . [Tone-ups Fitness] Malee your bottom half your better hal±1 

(Exhibit 8.) 

25. Defendant did not conduct product-specific studies of the Tone-ups footwear. 

VIOLATIONS OF THE FTC ACT 

26. Section 5(a) of the FTC Act, 15 U.S.c. § 45(a), prohibits "unfair or deceptive acts or 

practices in or affecting commerce." 

27. Section 12 of the FTC Act, 15 U.S.c. § 52, prohibits the dissemination of any false 

advertisement in or affecting commerce for the purpose of inducing, or which is likely to induce, the 

purchase of food, drugs, devices, services, or cosmetics. For the purposes of Section 12 of the FTC Act, 

15 U.S.C. § 52, Defendant's purported toning footwear products, including Shape-ups, Resistance 

Runner, Toners, and Tone-ups, are "device[s]" as defined in Section 15(d) of the FTC Act, 15 U.S.C. 

§ 55(d). 

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A. lost an average of 2.78 pounds in eight weeks, compared to .30 pounds for the 

control group that wore standard fitness shoes; and 

B. reduced their body fat by an average of 1.31 % in eight weeks, compared to 

0.57% for the control group that wore standard fitness shoes. 

29. In truth and in fact, Shape-ups wearers, in the referenced clinical study, did not: 

A. lose an average of 2.78 pounds in eight weeks, compared to .30 pounds for the 

control group that wore standard fitness shoes; or 

B. reduce their body fat by an average of 1.31 % in eight weeks, compared to 0.57% 

for the control group tlmt wore standard fitness shoes. 

30. Therefore, the making of the representations as set forth in Paragraph 28 of this 

Complaint constitutes a deceptive act or practice and the making of false advertisements, in or affecting 

commerce, in violation of Sections 5(a) and 12 oftlle FTC Act, 15 U.S.C. §§ 45(a) and 52. 

COUNTn 

Unlawful Claims Regarding Weight Loss and Body Fat Reduction Benefits of "Shape-Ups" 

31. Through the means described in Paragraphs 12 and 13, including through use of the 

product name, "Shape-ups," Defendant has represented, directly or indirectly, expressly or by inlplication, 

that walking in Shape-ups footwear will result in more weight loss and more body fat reduction, including 

as much as 2.78 pounds of weight and 1.31% of body fat in eight weeks, than walking in standard fitness 

shoes. 

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in violation of Sections 5(a) and 12 of the FTC Act, IS U.S.C. §§ 45(a) and 52. 

COUNTll 

Unlawful Claims Regarding Muscle Strengthening and Toning Benefits of "Shape-Ups" 

34. Through the means described in Paragraphs 12 and 13, including through use of the 

product name, "Shape-ups," Defendant has represented, directly or indirectly, expressly or by implication, 

that walking in Shape-ups footwear will strengthen and tone leg, back, buttock, and abdomina1 muscles 

more than walking in standard fitness shoes. 

35. In truth and in fact, the representations set forth in Paragraph 34 were not substantiated at 

the time the representations were made. 

36. Therefore, tlle rna1cing of the representations set forth in Paragraph 34 of this Complaint 

constitutes a deceptive act or practice and the malcing of false advertisements, in or affecting commerce, 

in violation of Sections 5(a) and 12 of the FTC Act, IS U.S.c. §§ 45(a) and 52. 

COUNT IV 

Unlawful Claims Regarding Circulation and Aerobic Conditioning Benefits of "Shape-Ups" 

37. Through the means described in Paragraphs 12 and 13, including through use of the 

product name, "Shape-ups," Defendant has represented, directly or indirectly, expressly or by implication, 

that wa1lcing in Shape-ups footwear will improve overall circulation and aerobic conditioning more than 

wa1lcing in standard fitness shoes. 

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in violation of Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52. 

COUNT V 

Deceptive Omissions Regarding Endorser of "Shape-Ups" 

40. Through the means described in Paragraphs 12 through 14, Defendant has represented, 

directly or indirectly, expressly or by implication, that Dr. Steven Gautreau endorses or has endorsed 

Defendant's Shape-ups footwear, based upon his independent, objective study of the product. Defendant 

has failed to disclose, or to adequately disclose, material information about Dr. Gautreau's endorsement, 

including that Defendant paid Dr. Gautreau to conduct the pUIpOrted study, and that he is married to a 

senior vice president of marketing at Skechers. These facts would be material to consumers in their 

purchase or use decisions regarding Defendant's product. Therefore, the failure to disclose these facts, in 

light of the representation made, constitutes a deceptive act or practice and the making of false 

advertisements, in or affecting commerce, in violation of Sections 5(a) and 12 of the FTC Act, 15 U.S.c. 

§§ 45(a) and 52. 

COUNT VI 

Unlawful Claims Regarding Benefits of "Resistance Runner" 

41. Through the means descnbed in Paragraphs 17 and 18, Defendant has represented, 

directly or indirectly, expressly or by implication, that: 

A. tests show that running in Resistance Runner footwear will increase postural 

muscle activation up to 85%, increase gluteus medius muscle activation up to 

Page 140f17 
more than nrnning in standard nrnning shoes. 

42. In truth and in fact, the representations set forth in Paragraph 41 are false or were not 

substantiated at the time the representations were made. 

43. Therefore, the making of the representations set forth in Paragraph 41 of this Complaint 

constitutes a deceptive act or practice and the malcing of false advertisements, in or affecting commerce, 

in violation of Sections 5(a) and 12 of the FTC Act, 15 U.S.c. §§ 45(a) and 52. 

COUNT VII 

Unlawful Claims Regarding Benefits of "Shape-Ups Toners" 

44. Through the means described in Paragraphs 20 and 21, including through use of the 

product name, "Shape-ups Toners," Defendant has represented, directly or indirectly, expressly or by 

implication, that walking in Shape-ups Toners footwear will cause the wearer to burn more calories and 

lose more weight, and will tone and strengthen calf, thigll, and buttocks muscles more than walking in 

standard fitness shoes. 

45. In truth and in fact, the representations set forth in Paragraph 44 were not substantiated at 

the time the representations were made. 

46. Therefore, the making of the representations set forth in Paragraph 44 of this Complaint 

constitutes a deceptive act or practice and the malcing of false advertisements, in or affecting commerce, 

in violation of Sections 5(a) and 12 of the FTC Act, 15 U.S.c. §§ 45(a) and 52. 

Page 15 of17 
that walking in Tone-ups footwear will cause the wearer to bum calories and lose weight, more than 

walking in standard shoes. 

48. In truth and in fact, the representations set forth in Paragraph 47 were not substantiated at 

the time the representations were made. 

49. Therefore, the making of the representations set forth in Paragraph 47 of this Complaint 

constitutes a deceptive act or practice and the making of false advertisements, in or affecting commerce in 

violation of Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52. 

CONSUMER INJURY 

50. Consumers have suffered and will continue to suffer substantial injury as a result of 

Defendant's violations of the FTC Act In addition, Defendant has been unjustly enriched as a result of 

its unlawful acts or practices. Absent injunctive relief by this Court, Defendant is likely to continue to 

injure consumers, reap unjust enrichment, and harm the public interest. 

THIS COURT'S POWER TO GRANT RELIEF 

51. Section 13(h) of the FTC Act, 15 U.S.c. § 53 (h), empowers this Court to grant injunctive 

and such other relief as the Court may deem appropriate to halt and redress violations of any provision of 

law enforced by the FTC. The Court, in the exercise of its equitable jurisdiction, may award ancillary 

relief, including rescission or reformation of contracts, restitution, the refund of monies paid, and the 

disgorgement of ill-gotten monies, to prevent and remedy any violation of any provision of law enforced 

by the FTC. 

Page 16 ofl7 
avert the likelihood of consumer injruy during the pendency of this action and to preserve the possibility 

of effective final relief, including, but not limited to, a prelimiruny injunction; 

B. Enter a permanent injunction to prevent future violations of the FTC Act by Defendant; 

C. Award such relief as the Court finds necessary to redress injruy to consumers resulting 

from Defendant's violations of the FTC Act, including, but not limited to, rescission or reformation of 

contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies; and 

D . Award Plaintiff the costs of bringing this action, as well as such other and additional 

relief as the Court may determine to be just and proper. 

Dated:' rfl Cl.-iy. I & ( !) (') / du 

Respectfully submitted, 

WILLARD K TOM 

General Counsel 

JON MILLER STEIGER 

Director, East Central Region 

'jevu;j/J i. f2au"l 

LARISSA L. BUNGO (OH Bar 0066148) 

DANA C. BARRAGATE (OR Bar 0065748) 

MICHAEL MILGROM (OH Bar 0012959) 

CHRISTOPHER D. PANEK (OH Bar 0080016) 

Federal Trade Commission 

East Central Region 

1111 Superior Avenue, East, Suite 200 

Cleveland, Ohio 44114 

Phone: (216) 263-3403 (Bungo) Fax: (216) 263-3426 

Ibungo@ftI'oV dbarragate c.gov 

mmilgrom c.gov 

cpanek@ftc.gov 

Attorneys for Plaintiff Federal Trade Commission 

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