The Federal Trade Commission says Reebok's ads were deceptive, claiming the shoes measurably strengthen legs, thighs and buttocks.
"Settling does not mean we agree with the FTC's allegations," Dan Sarro, a Reebok spokesman, said in a statement Wednesday. "We do not. We have received overwhelmingly enthusiastic feedback from thousands of EasyTone customers."
Reebok has agreed to stop making the claims on its EasyTone footwear.
Consumers can get a refund directly from the FTC or through a court-approved class action lawsuit.
The FTC took issue with Reebok's ads that claimed its EasyTone footwear had been proven to lead to 28 percent more strength and tone in the buttock muscles and 11 percent more strength and tone in hamstring and calf muscles than regular walking shoes. The FTC said it could not disclose if it was pursuing similar actions against other shoe makers.
The Associated Press contributed to this report.