FASHION Nova customers are in line for a $2.4 million windfall in a “deceptive review” settlement – and shoppers can pick between two options.
Following claims that the fast fashion brand “suppressed reviews” online, over 148,000 customers can expect refunds.
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Allegations surrounding the removal of negative customer reviews was first brought to light by the Federal Trade Commission in January 2022.
However, the FTC has since announced that a total of almost $2.4 million will be distributed to customers as part of a settlement.
Fashion Nova has also agreed to a settlement order that forbids it from hiding customer reviews again, officials say.
The FTC press release stated: “Fashion Nova misrepresented that the product reviews on its website reflected the views of all customers who submitted reviews, when in fact it suppressed reviews with ratings lower than four stars out of five.”
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But the FTC added this is the first case involving efforts to hide negative customer reviews.
THE TWO OPTIONS
The FTC claimed it is sending both checks and PayPal payments to over 148,000 eligible customers.
Those who receive checks should cash them within 90 days or redeem their PayPal payments within 30 days.
Anyone who purchased an item from the company before November 21, 2019 and filed a “valid claim” to the FTC before August 15, 2023 is eligible.
FTC’S ORIGINAL COMPLAINT
Originally, the FTC complained that Fashion Nova had manipulated reviews in January 2022, USA Today revealed.
The complaint said: “From as early as late 2015 through mid-November 2019, 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.”
FTC maintained in the same complaint that the removal of negative reviews led to a skewed opinion of its products.
WHAT IS FASHION NOVA
The fast fashion brand primarily operates online and is a known user of affiliate marketing.
It boats five store locations throughout Southern California and it opened its first store in Panorama City.
Richard Saghian, the current CEO of the company founded it in 2006.
It went online in 2013 and claimed it was the “primary source for shoppers worldwide”.
Fashion Nova has been approached for a comment.
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