Australian Federal Court Fines Reebok $350,000 & Orders Refunds For Shoe Endorsed By Miranda Kerr That Claims Unproven Health Benefits

YouTube/Reebok

The 1-minute, 56-second advert by Australian model Miranda Kerr surely sold thousands of EasyTone sneakers for athletic shoe brand Reebok. However, an Australian Federal Court declared on Tuesday that the commercial made false claims that the shoe was better for calves, thighs and buttocks of its user.

The court fined Reebok $350,000 and ordered the firm to refund customers who believed the endorsement by Kerr. Reebok admitted it made false and misleading claims on the health benefits of the shoe which it placed also shoe boxes, swing tabs, booklets and posters.

In the commercial, Kerr said she wears the EasyTone shoes for her yoga and wherever she goes because it benefits her body as she goes through her daily life. Reebok, without backing its claim with scientific evidence, claimed the shoe's balance pods built-in under the heel and balance ball-inspired technology with moving increase boosts the butt's muscle activation by 28 per cent and on thighs and calves by 11 per cent.

The court said that Reebok violated three sections of the Australian Consumer Law and lacks reasonable grounds to make such claims.

As part of the agreement that Reebok made with the Australian Competition and Consumer Commission (ACCC) which initiated the lawsuit in December, the shoemaker would issue $35 refunds to buyers, establish a hotline, publish corrective notices and being a compliance programme.

Fines as large as $25 million has been imposed on Reebok in the US after the Federal Trade Commission also penalised the firm for making false claim on its product helping shoe owners achieve better legs. Despite Reebok Australia being aware of the US court case, it still sold 16,448 pairs of EasyTone shoes and earned $500,000 in 2012 for the sale of that model with false claims.

"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 ... This is particularly important in cases such as this where it is difficult for consumers to independently verify the claims," The Sydney Morning Herald quoted ACCC Deputy Char Delia Rickard.

In a statement, Reebok's brand manager said, "We are happy to have resolved the ACCC's inquiry over our historical EasyTone advertising so that we can return our focus on inspiring people everywhere to be their absolute best."