WASHINGTON, D.C. — The Federal Trade Commission (FTC) is issuing nearly $2.4 million in payments to consumers as part of a settlement with fast fashion retailer Fashion Nova, following allegations that the company suppressed negative reviews on its website.
According to the FTC, Fashion Nova misled customers by creating the false impression that product reviews on its website represented all feedback submitted by purchasers. The agency alleged the company concealed reviews that rated its products less than four out of five stars, an action that violated consumer trust. This marked the FTC’s first case addressing the suppression of negative customer reviews.
Under the terms of the settlement announced in January 2022, Fashion Nova agreed to discontinue any practices aimed at suppressing or hiding customer reviews and to adopt policies ensuring transparency. The retailer was also required to compensate affected consumers.
The FTC is now distributing payments to 148,351 individuals who filed valid claims for compensation. Consumers who were awarded compensation selected their preferred payment method—checks or PayPal—when submitting their claims. The FTC advises recipients to cash their checks within 90 days and redeem their PayPal payments within 30 days to ensure timely processing.
This case underscores the importance of transparency in maintaining consumer trust. By addressing deceptive practices, the FTC continues to reinforce fair marketplace standards. Moving forward, this milestone highlights the growing accountability for businesses to provide authentic and accurate representations of consumer feedback.
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