The Federal Trade Commission announced that it will be sending refunds to some Fashion Nova customers after it said the fast fashion retailer engaged in “deceptive review practices.”
According to a press release from Jan. 28, the FTC says it would be sending a total of almost $2.4 million to affected customers as part of a settlement. The FTC alleged that Fashion Nova had “blocked negative reviews of its products from being posted on its website.”
“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,” the press release said.
According to the FTC, this is the first case involving efforts to conceal negative customer reviews.
Here’s what you need to know.
How are Fashion Nova customers getting refunds?
The FTC says it is sending both checks and PayPal payments to more than 148,000 customers who have filed a valid claim. According to the press release, people who receive checks should cash them within 90 days or redeem their PayPal payments within 30 days.
Officials also say that Fashion Nova has agreed to a settlement order that would prohibit it from suppressing customer reviews.
According to the FTC, people eligible for the refund were customers who purchased items from the company before Nov. 21, 2019, and filed a “valid claim” to the FTC before Aug. 15, 2023.
What did the FTC allege about Fashion Nova?
In the original complaint from January 2022 obtained by USA TODAY, the FTC alleged that Fashion Nova manipulated reviews.
“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,” the complaint said.
The FTC said in the same complaint that it had identified numerous instances where the company suppressed negative reviews that led to a false or misleading representation of its products.
What is Fashion Nova?
According to the Fashion Nova website, the company has an online storefront, as well as five retail stores throughout Southern California.
The company was founded in 2006 by current CEO Richard Saghian.
In 2013, Fashion Nova launched an online store which the company says has become the “primary source for shoppers worldwide.”
Fashion Nova did not immediately return USA TODAY’s request for comment on Wednesday.
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at fernando.cervantes@gannett.com and follow him on X @fern_cerv_.
