Reebok Australia Pty Ltd has been penalised by the Federal Court for making false and misleading representations about their EasyTone shoe range.
The Court, in proceedings brought by the Australian Competition and Consumer Commission (ACCC), found that Reebok misled customers with claims the EasyTone shoes would tone calves, thighs and buttocks with, among other things, “balance ball-inspired technology.”
Reebok Australia has been ordered to pay $350,000 for contravening the Australian Consumer Law (ACL), with the Federal Court finding that Reebok had no reasonable proof to make the representations.
“Where businesses claim their products have certain performance characteristics and benefits, they have a responsibility to ensure that those claims are accurate and supported by credible evidence,” said ACCC Deputy Chair Delia Rickard.
“This is particularly important in cases such as this where it is difficult for consumers to independently verify the claims.”
Though Reebok’s EasyTone shoe range began selling in Australia in 2009, the court’s ruling referred to the company’s promotion of the EasyTone shoes from September 2011 to February 2013.
In September 2011, Reebok International was forced to pay $US25 million in customer refunds in order to settle charges by the Federal Trade Commission (FTC). The FTC complaint related to Reebok’s “unsupported claims in advertisements.”
“The fact that these claims made about the alleged benefits of EasyTone shoes had come to the attention of regulators in other jurisdictions but still continued to be made in Australia by Reebok was of particular concern to the ACCC,” Ms Rickard said.
Apart from the $350,000 fine, Reebok Australia has been ordered to provide refunds of $35 per pair to customers who purchased EasyTone shoes from September 2011 to February 2013 and who believe they suffered a loss or damage due to Reebok’s misleading representations.
Reebok Australia is required to establish an 1800 number by which consumers can contact the company and to publish corrective notices detailing how customers can seek redress.
