![]() Under the proposed settlement of the latest allegations, Fashion Nova will pay $4.2 million for harm consumers incurred. In April 2020, the FTC announced that Fashion Nova agreed to pay $9.3 million to settle allegations that the company failed to properly notify consumers and give them the chance to cancel their orders when it failed to ship merchandise in a timely manner, and that it illegally used gift cards to compensate consumers for unshipped merchandise instead of providing refunds. This is the second case the FTC has brought against Fashion Nova in recent years. In addition, the FTC has released new guidance for online retailers and review platforms to educate them on the agency's key principles for collecting and publishing customer reviews in ways that do not mislead consumers. ![]() The FTC also announced that it is sending letters to 10 companies offering review management services, placing them on notice that avoiding the collection or publication of negative reviews violates the FTC Act. Suppressing a product's negative reviews deprives consumers of potentially useful information and artificially inflates the product's average star rating. But from late-2015 until November 2019, Fashion Nova never approved or posted the hundreds of thousands of lower-starred, more negative reviews. "Fashion Nova is being held accountable for these practices, and other firms should take note." According to the FTC's complaint, Fashion Nova used a third-party online product review management interface to automatically post four- and five-star reviews to its website and hold lower-starred reviews for the company's approval. "Deceptive review practices cheat consumers, undercut honest businesses, and pollute online commerce," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection. The case is the FTC's first involving a company's efforts to conceal negative customer reviews. The FTC alleged in a complaint that the California-based retailer, which primarily sells its "fast fashion" products online, misrepresented that the product reviews on its website reflected the views of all purchasers who submitted reviews, when in fact it suppressed reviews with ratings lower than four stars out of five. The Federal Trade Commission alleges and charges as follows: Online fashion retailer Fashion Nova, LLC will be prohibited from suppressing customer reviews of its products and required to pay $4.2 million to settle Federal Trade Commission allegations that the company blocked negative reviews of its products from being posted to its website. Action JanuThe following describes a Settlement that has been formally brought by a government agency. If you have questions, call the claims administrator at 85 or send email to Action: BBB reports on known government actions involving business’ marketplace conduct: Gov. The deadline to file a claim is August 15, 2023.įile a claim online at ftc.gov/FashionNova. You never got a refund for those things.You weren’t satisfied with what you bought.Your decision to buy was influenced by the site’s customer reviews and ratings.You bought things from before November 21, 2019. ![]() ![]() You’re eligible to file a claim if all four of these things are true: How much will each customer get back? That mostly depends on how many people file claims. Now, some customers who bought things at because of those high ratings can file claims to get money back. That’s because the company blocked negative ratings and customer reviews from showing up on the site for several years, according to an FTC complaint. If you shopped at before November 2019, you probably saw lots of products with no less than four- or five-star ratings.
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