FTC to refund Fashion Nova customers $2.4M

The agency accused the fast fashion company of suppressing negative consumer reviews

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TheFederal Trade Commission is sending $2.4 millionin refunds to Fashion Nova customers after the agency said the fast fashion company blocked negative product reviews, according to a press release Tuesday

The FTC said the company suppressed reviews with ratings lower than four star ratings

The payments come froman agreement the FTCreached with Fashion Nova in 2022, with the fast fashion company paying $4.2 million to settle allegations of consumer harm incurred as a result of suppressing reviews.  Fashion Nova was also required to begin posting all negative customer reviews with the exception of those that are considered obscene, offensive or false, per a previous release

Fashion Nova customers that filed a complaint will receive payment by PayPal or check. The FTC said it was sending payments to 148,351 people

The FTC’s original investigation, launched in January 2022, was at the time considered to be the agency’s first case involving the concealment of negative customer reviews

A Fashion Nova spokesperson didn’t immediately respond to Fashion Dive’s request for comment on the settlement

Founded in 2006 and launched online in 2013, Fashion Nova focuses on women’s apparel, primarily jeans and clubwear. It is privately held by CEO Richard Saghian. In addition to its e-commerce store, it operates five retail locations in Southern California

Filed Under:Brands,Corporate/Finance,Compliance