Business Ethics
Who’s heard of the recent (and slowly dying) fad of ‘toning shoes’? I’m sure if not all, then most of you have. The advertising of this line of shoes was pervasive: on billboards, on busses, in magazines, in commercials are more. Endorsed by celebrities like Kim Kardashian and Brooke Burke, Skechers “Shape-Ups” and the rest of its toning line’s claim to fame was guaranteed “toned legs, better buttocks, a slimmer body without setting a foot in the gym”. Here’s an example of a paper advertisement. 
Well it turns out these claims were falsely advertised. Sadly, after all this hype, these shoes have proven to possess none of the magical toning power that the company insisted it did. In May 2012, Skechers took a large hit. The United States Federal Trade Commission forced Skechers to pay $40 million to settle consumer complaints and to reimburse and fully refund sales to unsatisfied customers. The following is a video of CNN’s report on the issue and includes Skechers’ video advertisements of their products.
CCN’s Report on Skechers Shape-Up’s
So what is the ethical issue here? It is simple. Companies should not falsely advertise its products to have features that it doesn’t. Customers have the right to know exactly what they’re getting when they purchase a product. False advertisement is unfair to consumers and will ultimately hurt the credibility of the company in the long run. Consumers will no longer want to purchase products from a company with such a history. Bottom line, companies should have evidence to back up their claims.
If you want to browse the full article: Skechers Toning Shoe – Customers to get Refund
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