An article from 
Dive Brief
The footwear company had asked the court to dismiss a class action lawsuit that accused it of false advertising and misrepresentation.
Published April 17, 2024
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Dive Brief:
- A federal judge denied footwear company Crocs’ move to dismiss a class action lawsuit against it over alleged shrinking shoes last week, allowing the case to proceed.
- In June 2023, Crocs asked the court to dismiss an amended complaint filed by a group of individual consumers that accused Crocs of fraudulent concealment, misrepresentation and false advertising, among other claims. It also asked the court to strike class allegations. Both of these requests were denied.
- Attorneys for the group of plaintiffs said the company sells products without telling customers that the shoes are made from material “that shrinks upon exposure to ordinary heat, direct sunlight, and/or water.” Attorneys further claim that this causes the shoes to shrink by up to several shoe sizes.
Dive Insight:
The initial complaint, filed in November 2022 in the U.S. District Court for the Northern District of California, centers on Crocs products made with its Croslite material in various styles.
“This design flaw defeats the fundamental purpose of the Products since the shrinkage renders them unwearable and worthless,” the complaint reads. “Alternatively, because the Products are basically water shoes, flip-flops or sandals that are fundamentally designed for, and intended to be worn in, and exposed to, heat, direct sunlight and water, the Products are not fit for their intended purpose.”
The complaint also referenced Crocs advertisem*nts that use the phrases “water shoes,” “water sandals” and “water-friendly” and show people wearing them near bodies of water in direct sunlight.
A Crocs spokesperson didn’t immediately respond to Fashion Dive’s request for comment.
Other footwear companies have faced allegations of deceiving customers through advertising.
In 2012, Skechers paid $40 million to settle Federal Trade Commission charges about its “toning shoes.” At the time, the FTC said this was due to Skechers “making unfounded claims that Shape-ups would help people lose weight, and strengthen and tone their buttocks, legs and abdominal muscles.” In 2014, Vibram USA agreed to settle a lawsuit that alleged that Vibram gave unsubstantiated claims about health benefits of its footwear, though it still denied any wrongdoing, according to a report from Runner’s World.
More recently, Crocs-owned footwear brand Heydude paid $1.95 million last year to the FTC to settle charges related to the suppression of negative reviews.
Crocs reached $3.96 billion in revenue during its most recent fiscal year, which was up 11.5% year-over-year. The Crocs brand was the largest driver of growth, rising 13.3%, and Heydude revenue grew 6%.
Filed Under: Brands, Corporate/Finance
