Company to pay millions in refunds to consumers nationwide

Wilmington – Attorney General Beau Biden announced that Delaware has joined the federal government, 42 states, and the District of Columbia in reaching an agreement with Skechers USA to resolve charges that it advertised certain health benefits from wearing its line of rocker-bottom athletic shoes without the evidence to substantiate those claims.

“It’s simply unacceptable for companies to sell products by claiming health benefits they can’t back up with evidence,” Attorney General Biden said.  “Delawareans who purchased these Skechers products can learn more about the refunds we’ve secured for them by visiting www.ftc.gov/skechers or calling our Consumer Hotline at 800-220-5424.”

In a lawsuit filed this week, along with the proposed settlement agreement, the states and the Federal Trade Commission (FTC) allege that Skechers violated Delaware’s Deceptive Trade Practices Act and other laws by making health-related claims in the marketing, packaging, and selling of its line of rocker-bottom shoe products including Shape-ups, Tone-ups, and the Skechers Resistance Runner.  The lawsuit alleges that Skechers claimed these products caused consumers to lose weight, burn more calories, improve circulation, fight cellulite, and firm, tone or strengthen thigh, buttock, and back muscles without adequately substantiating these claims by competent and reliable scientific evidence.

As part of the settlement, Sketchers will pay approximately $40 million for partial refunds to consumers nationwide who purchased the Shape-Ups, Tone-Ups, or the Skechers Resistance Runner shoes.  Current information about claiming a refund is available on the FTC website at www.ftc.gov/skechers.  Skechers will also pay an additional $5 million to the states.

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Company to pay millions in refunds to consumers nationwide

Wilmington – Attorney General Beau Biden announced that Delaware has joined the federal government, 42 states, and the District of Columbia in reaching an agreement with Skechers USA to resolve charges that it advertised certain health benefits from wearing its line of rocker-bottom athletic shoes without the evidence to substantiate those claims.

“It’s simply unacceptable for companies to sell products by claiming health benefits they can’t back up with evidence,” Attorney General Biden said.  “Delawareans who purchased these Skechers products can learn more about the refunds we’ve secured for them by visiting www.ftc.gov/skechers or calling our Consumer Hotline at 800-220-5424.”

In a lawsuit filed this week, along with the proposed settlement agreement, the states and the Federal Trade Commission (FTC) allege that Skechers violated Delaware’s Deceptive Trade Practices Act and other laws by making health-related claims in the marketing, packaging, and selling of its line of rocker-bottom shoe products including Shape-ups, Tone-ups, and the Skechers Resistance Runner.  The lawsuit alleges that Skechers claimed these products caused consumers to lose weight, burn more calories, improve circulation, fight cellulite, and firm, tone or strengthen thigh, buttock, and back muscles without adequately substantiating these claims by competent and reliable scientific evidence.

As part of the settlement, Sketchers will pay approximately $40 million for partial refunds to consumers nationwide who purchased the Shape-Ups, Tone-Ups, or the Skechers Resistance Runner shoes.  Current information about claiming a refund is available on the FTC website at www.ftc.gov/skechers.  Skechers will also pay an additional $5 million to the states.
       
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Price fixing scheme cost readers $100 million

Wilmington – Attorney General Beau Biden and 16 other Attorneys General are seeking to  join a lawsuit against two of the nation’s largest publishers and Apple, alleging that they and other publishers conspired beginning in 2009 to raise the prices of electronic books sold to consumers.

The lawsuit, filed originally last month by 15 states and the District of Columbia, stems from a two-year investigation initiated by the State of Texas.  The investigation revealed that the publishers and Apple conspired to eliminate e-book price competition and artificially raise prices by imposing a distribution model in which publishers, not retailers, set prices.  For example, the suit alleges that the publishers and Apple agreed to set the price for New York Times bestselling titles — which often retailed at $9.99 before the conspiracy — at the higher prices of $12.99 or $14.99.  The coordinated price fixing agreement resulted in more than $100 million being overcharged to consumers nationwide.

“Conspiring to increase prices that consumers pay is against the law,” Attorney General Biden said.  “We’re acting to protect consumers and ensure fair and open competition.”

Biden and the additional Attorneys General filed a motion on Friday seeking the Court’s approval to join the lawsuit.

Between 2007 and 2011, the e-books share of all book titles sold in the US rose from 2% to approximately 25%.  In 2010, e-book sales surpassed $440 million.

Three other publishers, HarperCollins, Hachette, and Simon and Schuster have agreed to settle and were not named in the lawsuit.

The lawsuit, filed in United States District Court for the Southern District of New York, seeks damages for customers who paid artificially inflated prices, civil penalties, and injunctive relief

to stop the illegal practices and ensure fair competition.

Wilmington – Delaware Attorney General Beau Biden announced today that an undercover investigation by the Delaware Child Predator Task Force has led to the arrest of a 31-year-old Bear man on child solicitation charges. Scott R. Gibson,

Price fixing scheme cost readers $100 million
 
Wilmington – Attorney General Beau Biden and 16 other Attorneys General are seeking to  join a lawsuit against two of the nation’s largest publishers and Apple, alleging that they and other publishers conspired beginning in 2009 to raise the prices of electronic books sold to consumers.
 
The lawsuit, filed originally last month by 15 states and the District of Columbia, stems from a two-year investigation initiated by the State of Texas.  The investigation revealed that the publishers and Apple conspired to eliminate e-book price competition and artificially raise prices by imposing a distribution model in which publishers, not retailers, set prices.  For example, the suit alleges that the publishers and Apple agreed to set the price for New York Times bestselling titles — which often retailed at $9.99 before the conspiracy — at the higher prices of $12.99 or $14.99.  The coordinated price fixing agreement resulted in more than $100 million being overcharged to consumers nationwide.
 
“Conspiring to increase prices that consumers pay is against the law,” Attorney General Biden said.  “We’re acting to protect consumers and ensure fair and open competition.”
 
Biden and the additional Attorneys General filed a motion on Friday seeking the Court’s approval to join the lawsuit. 
 
Between 2007 and 2011, the e-books share of all book titles sold in the US rose from 2% to approximately 25%.  In 2010, e-book sales surpassed $440 million.
 
Three other publishers, HarperCollins, Hachette, and Simon and Schuster have agreed to settle and were not named in the lawsuit.
 
The lawsuit, filed in United States District Court for the Southern District of New York, seeks damages for customers who paid artificially inflated prices, civil penalties, and injunctive relief
to stop the illegal practices and ensure fair competition.
 
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