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The Federal Trade Commission (FTC) is issuing over 148,000 refunds totaling nearly $2.4 million in a settlement order involving online fast fashion retailer Fashion Nova, which is accused of hiding negative reviews.
To qualify for the refund, anyone who purchased items from Fashion Nova before November 21, 2019, had to file a “valid complaint” with the FTC by the August 15, 2023, deadline. Currently, the FTC no longer accepts court cases in the matter.
In the final order, Nova’s fashion is explicitly prohibited from hiding reviews or endorsements, and is required to provide them to consumers “regardless of the endorser’s opinion or notation. “In addition, the store ordered to pay $4. 2 million.
A view of the atmosphere in Fashion Nova Present: Party With Cardi in Hollywood Palladium on May 8, 2019, in Los Angeles. (Tommaso Boddi/Getty images for nova fashion)
Fashion Nova went to Jennifer Lopez’s iconic Versace dress
While recipients of the FTC payments in this case were spread out across the country, according to the commission’s data, Illinois had the largest number of recipients with more than 25,000. Among the 148,351 recipients, the median refund was $16, according to the FTC.
The FTC made its opposite accusations to Nova in January 2022, launching the first case of this type.
“From the end of 2015 to mid -November 2019, Fashion Nova has selected to publish 4 and five -star criticism, but has not approved or published a lot of thousands of more negative criticisms,” the “FTC wrote in its opposite complaint To nova fashion.
The FTC said it has uncovered “many instances” in which Nova Fashion “got rid of product magazines with ratings of less than 4 stars,” which depict its “fake or misleading” products.
The FTC said it has discovered “many cases” in which Nova Fashion “has fought from products of products with notes of less than 4 stars. ” (Istock / Istock)
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While this case is the first FTC that involves negative reviews, it is not the first case of the commission that involves Nova Fashion. In April 2020, the fast fashion store agreed to pay $ 9. 3 million in accusations “that it does not lead consumers well and gave them the option to cancel their orders when he could not send the products in a well -timed manner and illegally used a Gift cards to compensate consumers for non -scared goods instead of offering reimbursements. “”
In addition, in 2022, the FTC placed several opinions provided, informing them that “avoiding the collection or publication of negative criticism violates the FTC law. “
The signaling is maintained outside the headquarters of the Federal Trade Commission in Washington, D. C. , in 2019. (Andrew Harrer / Bloomberg through Getty Images / Getty Images)
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In its guide to featuring online customer reviews, the FTC instructs companies to not “prevent or discourage” consumers from submitting negative reviews. While a “reasonable process” to ensure reviews are genuine is allowed, the FTC tells businesses to “treat negative and positive reviews equally.”
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