Reebok actually may not be broke but refunding customers $25 million will have a significant effect on any company’s bottom line. The news comes after the FTC charged Reebok with making claims that could not be proven regarding their toning sneakers and apparel. As a result, the footwear company has to pay up a pretty hefty sum.
“The Federal Trade Commission, the nation’s consumer protection agency, charged Reebok with making claims about EasyTone and RunTone shoes that the company couldn’t support. According to the FTC, Reebok claimed that using these products would strengthen and tone leg and butt muscles.
To settle the case, Reebok has agreed to pay $25 million for refunds to people who bought Reebok toning shoes or apparel.” [FTC]
Cred: The Shoe Game