How a TINA.org Reader Tip Led to a Record Penalty for False Made in USA Claims
FTC says civil penalty against Williams-Sonoma is “the largest ever in a Made in USA case.”
June 2016: A federal judge granted final approval of the settlement.
October 2015: A federal judge preliminarily approved a settlement of a false advertising class-action lawsuit against Earth Inc.
The complaint, which was filed in December 2014, alleges that the company deceptively claims that the Earth Exer-Walk shoe will provide significant health benefits – including improving posture, strengthening core muscles, reducing joint stress, and increasing calories burned – when, in reality, the shoe does not perform as advertised and scientific tests show that wearing the shoe does not provide additional health benefits.
According to the settlement terms, class members will receive a pro rata distribution from the $270,000 settlement fund after other expenses (including notice and administrative expenses, attorneys’ fees, and an incentive award to the class representative) are paid. As part of the settlement agreement, the company represents that it no longer manufactures or sells the shoes and that it will not disseminate advertisements for the shoes.
A final fairness hearing is scheduled for June 21, 2016. For more information, go to www.earthexer-walkshoesettlement.com. (Hedges v. Earth Inc., Case No. 14-cv-9858, N. D. IL.)
For more information about other class-action lawsuits regarding shoes and TINA.org’s coverage of the product, click here.
FTC says civil penalty against Williams-Sonoma is “the largest ever in a Made in USA case.”
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