![]() In October, the FTC put hundreds of companies “on notice” that they faced action for using “fake online reviews and other deceptive endorsements.” Later that year, a skin care company settled an FTC complaint that said it had encouraged interns to write fake reviews. ![]() In 2019, a pill company was fined $12.8 million for allegedly posting fake Amazon reviews. The FTC, as well as local authorities, have taken action against companies that post fake online reviews. However, a spokesperson told The New York Times that the complaint was “inaccurate,” and the company was “highly confident that it would have won in court and only agreed to settle the case to avoid the distraction and legal fees that it would incur in litigation.” The settlement requires Fashion Nova to “post on its website all customer reviews of products currently being sold-with the exception of reviews that contain obscene, sexually explicit, racist, or unlawful content and reviews that are unrelated to the product or customer services like shipping or returns.”įashion Nova could not be reached for comment. The interface allows users to choose to have certain reviews automatically post based upon their star ratings and hold lower-starred reviews for client approval prior to posting.”Īs a result, “Fashion Nova chose to have four- and five-star reviews automatically post to the website, but did not approve or publish hundreds of thousands lower-starred, more negative reviews,” the FTC said. However, the FTC alleged, “Fashion Nova installed a third-party online product review management interface. ![]() at 1-86.Fast-fashion brand Fashion Nova has agreed to pay the Federal Trade Commission (FTC) $4.2 million to settle allegations that it used third-party software to prevent negative reviews from appearing on its site.Īccording to the FTC’s complaint, Fashion Nova’s site encouraged consumers to write a review of its various products and provide a star rating, from one to five. The retailer has agreed to send out direct refunds totalling $2.26 million to customers affected by its shortcomings.Ĭonsumers with further questions can contact the refund administrator - Rust Consulting, Inc. The FTC’s order also requires Fashion Nova to refund some customers directly. Most of the payments will be sent via PayPal to the email addresses of affected customers, but a small number of consumers will receive mailed checks. ![]() “Online retailers need to know that our Mail Order Rule requires them to notify customers in the event of shipping delays and offer the right to cancel with a full refund-not just a gift card or a store credit.” Millions in refundsĪll told, 518,552 consumers will receive a refund of $12.60 each from the FTC. “The same rules that we have enforced for nearly 50 years against catalogers and other mail-order companies also apply to online sellers,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection, in a statement. Finally, the company used gift cards to compensate consumers for items that did not ship instead of providing refunds, which isn’t permitted under FTC’s Mail Order Rule. ![]() The agency said Fashion Nova violated the rule in several ways, including by promising consumers fast shipping of their orders by including phrases like “Fast Shipping,” “2-Day Shipping,” and “Expect Your Items Quick!” However, the agency says it regularly failed to deliver on those promises.įashion Nova also violated the FTC’s rules by never giving consumers the opportunity to cancel their orders and receive refunds. The FTC said it’s sending out $6.5 million in payments to more than half a million consumers impacted by the retailer’s violations of its Mail, Internet, or Telephone Order Merchandise Rule. Photo (c) Peter Dazeley - Getty Images Consumers who were affected by online retailer Fashion Nova’s violations of the Federal Trade Commission’s rules regarding shipping notifications will soon receive refunds. ![]()
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