According to the FTC, Skechers made false and deceptive claims about the benefits of Shape-ups and other Skechers brands. If you’re in the fitness or health business, the $40 million settlement should grab your attention. But the underlying principles apply to all advertisers. If you're looking to get a leg up on substantiation, here are some footnotes to take from the case.
It’s usually Skechers promising to help people shape up. But this time, the shoe’s on the other foot. In a $40 million settlement announced by the FTC — part of a broader agreement that also resolves charges by state AGs — the agency is telling Skechers to shape up its claims for Shape-ups and other Skechers shoes.
Drip pricing: It may sound like something involving faulty plumbing fixtures, but it's the practice of advertising only part of a product’s price up front and then revealing other charges as the shopper goes through the buying process.
On May 21, 2012, the FTC is sponsoring a Conference on the Economics of Drip Pricing. The panels of econ profs — boasting more degrees than a thermometer — will discuss empirical analyses of drip pricing and the policy implications for consumers and competition.
The terms of FTC law enforcement actions apply just to the company in question and the proposed settlement with social network Myspace for alleged privacy-related glitches is no exception. But how should other businesses respond?
Social network site Myspace promised users it wouldn’t share their personally identifiable information in a way that was inconsistent with the reason people provided the info, without first notifying them and getting their approval. The company also said that information used to customize ads wouldn’t identify people to third parties and that Myspace wouldn’t share browsing activity that wasn’t anonymous.