Analysis of Deceptive Advertising by Global Shoe Giants Skechers and Reebok
In 2012, Skechers made a wise decision to pay $40 million to settle the Federal Trade Commission charges. The Manhattan Beach-founded shoe giant acknowledged that their false claims of weight loss from wearing its sneakers were misleading. Skechers released deceptive and unfounded fabrications about how their shoes could help consumers lose weight. This significant advertisement breached the code of ethics, as enforced by the Federal Trade Commission.
Lying about a product's benefit to support weight loss is unethical and crosses the boundary of ethical advertising claims. "The FTC alleges that this study did not produce the results claimed in the ad, that Skechers failed to disclose that Dr. Gautreau is married to a Skechers marketing executive, and that Skechers paid Dr. Gautreau to conduct the study," (FTC, 2012). This quote implies how Skechers overrode strict guidelines to falsify a claim and utilized a family member to stand by false claims, for monetary benefits. Manipulating study results violated consumer protection laws. Reebok paid $25 million settlement in 2011 to avoid an expensive trial and irreparable damages to their brand's reputation. Reebok claimed their shoes improved muscle strength. Neither brand disclosed paid affiliations. The settlement meant these companies were relieved of harsher punishments and protected their image.
The logical reasoning behind Skechers' and Reebok's multimillion-dollar settlement is that they are well aware of the long-lasting damages caused to affected consumers. Skechers and Reebok considered the irreparable damages their corporations would suffer if they went through a long, public trial and were worried about facing international scrutiny for their incredulous, fabricated advertising campaigns. Making false claims of weight loss, toning the leg muscles, and increasing strength affects consumers who were sold a lie. This action is illegal under customer protection laws, so Skechers and Reebok consciously breached protocol to deceitfully market their products to unsuspecting consumers. This type of misinformed advertising leads to distrust from consumers and the general public. They paid the settlements to avoid additional punishment and protect their image.
Falsifying claims to propel fictional narratives in consumer minds is unethical and illegal. Skechers and Reebok settled because it was necessary to do damage control. A company's reputation is always at stake. It takes years, even decades, to curate a sparkly, prestigious image for a business. Businesses hire Public Relations teams, attorneys, and responsibly assess the damage from the press before releasing a public statement. Reebok and Skechers crossed a boundary by lying to consumers about the benefits of their sneakers. This type of unethical advertising disrupts the credibility carefully stitched by industry professionals.
Deceptive advertising creates mistrust from the brand’s target audience and the general public. This type of irreparable alienation of their constructed brand pillars is a steep cost. Skechers’ and Reebok’s primary goal of selling more running shoes that quarter plummeted. The consequences match the breadth of their illegal actions. Lying to consumers about weight loss, muscle gains, and improved posture directly targets those striving to better their health. It reaches insecure people who were already trying to make a positive change in their lives. Some may perceive this action as taunting.
This specific advertising targets consumers with negative body image, and the giant settlements reflect the wrongdoing these two corporations admit to creating. Advertising claims unsupported by medical advice are a violation of consumer protection laws. Skechers and Reebok were able to remain in business and maintain their legacy by settling.
References
FTC. (2012, 16 May). Skechers will pay $40 million to settle FTC charges that it deceived consumers with ads for "toning shoes." Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2012/05/skechers-will-pay-40-million-settle-ftc-charges-it-deceived-consumers-ads-toning-shoes
FTC. (2011, 28 September). Reebok to pay $25 million in customer refunds to settle FTC charges of deceptive advertising of EasyTone and RunTone shoes. Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2011/09/reebok-pay-25-million-customer-refunds-settle-ftc-charges-deceptive-advertising-easytone-runtone