The Federal Trade Commission (FTC) is sending refunds to over 148,000 Fashion Nova customers due to the company's alleged practice of suppressing negative reviews from its website. Fashion Nova agreed to a settlement order prohibiting this practice in the future.
Some customers who purchased products from the fast fashion retailer Fashion Nova may be eligible for refunds due to the company's alleged deceptive review practices. The Federal Trade Commission ( FTC ) announced it is distributing nearly $2.4 million to affected consumers as part of a settlement. The FTC accused Fashion Nova of suppressing negative reviews from its website. Specifically, the retailer allegedly blocked reviews with ratings below four stars out of five.
This marks the FTC's first case involving efforts to conceal negative customer feedback. Fashion Nova, founded in 2006 by Richard Saghian as a small chain of stores in Southern California, targeting trendy women's fashion on a budget, expanded rapidly after launching its online platform in 2013. The company leveraged social media marketing and influencer partnerships to propel its fast fashion brand over the past decade.In a January 28th announcement, the FTC stated that Fashion Nova agreed to a settlement order prohibiting the suppression of customer reviews for currently sold products, except for those containing obscene, sexually explicit, racist, or unlawful content, and reviews unrelated to the product or customer services like shipping or returns. The FTC added that Fashion Nova was required to compensate affected consumers financially. Fashion Nova did not immediately respond to a request for comment. The FTC is issuing checks and PayPal payments to 148,351 Fashion Nova customers who submitted valid claims. Consumers selected their preferred payment method during the claims process. Recipients are advised to cash their checks within 90 days or redeem their PayPal payments within 30 days. Consumers with questions about their payment should contact the refund administrator, JND Legal Administration, at 855-678-0018 or visit the FTC's website for frequently asked questions about the refund process. The FTC emphasized that it never requests payment or account information from individuals seeking refunds
FASHION NOVA FTC REFUNDS Deceptive REVIEWS CONSUMER PROTECTION
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Fashion Nova to Pay Nearly $2.4 Million in Refunds Over Alleged 'Deceptive Review Practices'The Federal Trade Commission (FTC) is sending refunds to nearly 148,000 Fashion Nova customers as part of a settlement over the retailer's alleged practice of suppressing negative reviews. Fashion Nova is accused of blocking product reviews with ratings below four stars from being posted on its website.
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