Reebok has been penalised $350,000 and ordered to issue refunds for misleading customers about its EasyTone shoe range, which it claimed for years would boost muscle tone of calves, thighs and derrières more than ordinary sneakers.
The sportswear company conceded in the Federal Court it made false and misleading claims about the benefits of wearing EasyTone sneakers and sandals on shoe boxes, swing tags, booklets and posters.
Reebok, without scientific evidence, claimed "balance pods built-in under the heel" and "balance ball-inspired technology with moving air" in EasyTone shoes would increase "muscle activation" of the buttocks by 28 per cent and of thighs and calves by 11 per cent.
The international advertising drive featured Australian supermodel Miranda Kerr who said: "I work out, do yoga and wear my EasyTone wherever I go so that know that I'm benefitting my body as I go about my daily routine".
The Federal Court found Reebok breached three sections of Australian Consumer Law and had no reasonable grounds to make such representations.
In an agreement reached with the Australian Competition and Consumer Commission, which instigated the court action in December last year, Reebok will issue $35 refunds to customers, set up a hotline, publish corrective notices and start a compliance program.
The EasyTone shoe range has been on sale in Australia since late 2009, but the court action relates to promotional material from September 2011 and February 2013.
In September 2011, the United States arm of Reebok agreed to pay $US25 million in a settlement after the Federal Trade Commission claimed it was deceiving customers about the better legs promise.
Reebok Australia was aware of the US settlement but supplied 16,448 pairs of EasyTone shoes in boxes emblazoned with the false statements between September 2011 and May 2012.
In the 2012 financial year, Reebok raked in half a million dollars in revenue from the sales of Easytone shoes to retailers.
The ACCC first raised concerns with Reebok in August 2012, but it was not until May this year that the sporting goods maker admitted it was in the wrong.
"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's deputy chair, Delia Rickard.
"This is particularly important in cases such as this where it is difficult for consumers to independently verify the claims."
Reebok Australia is a wholly-owned subsidiary of sporting goods distributor True Alliance. Its brand manager Karl Pohlman told Fairfax Media that its customers were the first priority.
"We are happy to have resolved the ACCC's inquiry over our historical EasyTone advertising so that we can return our focus to inspiring people everywhere to be their absolute best," he said.
Retailers which flogged the EasyTone range include Myer, Sports Locker, Rebel Sport and Foot Locker.
