Retailer Fashion Nova suppressed negative online reviews, $2.4M going to customers

MT HANNACH
4 Min Read
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THE Federal Commerce Commission (FTC) issues more than 148,000 reimbursements totaling nearly $ 2.4 million in a payment order involving the Nova online fashion retailer, which is accused of having hidden negative criticisms.

To qualify for reimbursementConsumers who bought Nova fashion articles before November 21, 2019, had to make a “valid complaint” with the FTC before the deadline of August 15, 2023. Currently, the FTC no longer accepts complaints in the matter .

In the final order, Nova fashion is explicitly prohibited to hide opinions or endorsements, and is obliged to present them to customers “regardless of the opinion or the notation of the endorser”. In addition, the retailer was ordered to pay $ 4.2 million.

The 2019 Nova fashion event with rapper Cardi B

A view of the atmosphere at Fashion Nova Present: Party with Cardi at Hollywood Palladium on May 8, 2019, in Los Angeles. (Tommaso Boddi / Getty Images for Nova fashion)

Fashion Nova continued to copy the emblematic Versace dress of Jennifer Lopez

While the beneficiaries of the FTC payments in this case were distributed across the country, according to Commission dataIllinois had the greatest number of beneficiaries with more than 25,000. Among the 148,351 beneficiaries, the median reimbursement was $ 16, according to the FTC.

The FTC made its allegations against Nova fashion in January 2022, launching the first case of the genre.

“From the end of 2015 to mid-November 2019, Nova fashion I chose to automatically publish the four and five stars criticisms on the website, but has not approved or published hundreds of thousands of more negative stars starred, “wrote the FTC in its complaint against Nova fashion.

The FTC said it has found “many cases” in which Nova fashion “has removed product magazines with notes less than four stars,” representing their “false or deceptive” products.

Woman holding a credit card and a phone

The FTC said it has found “many cases” in which Nova fashion “has removed products from products with notes less than four stars”. (Istock / Istock)

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Although this case was the first FTC involving negative criticism, it was not the first case of the commission involving Nova fashion. In April 2020, the Quick fashion retailer agreed to pay $ 9.3 million on allegations “according to which this did not correctly inform consumers and give them the possibility of canceling their orders when he did not send the goods in a timely time, and that he illegally used gift cards to compensate for consumers for unreported goods instead of providing reimbursements.

In addition, in 2022, the FTC placed several companies offering opinions, informing them that “avoiding the collection or publication of negative criticisms violates the FTC law”.

FTC seat

The signaling is outside the headquarters of the Federal Trade Commission in Washington, DC, in 2019. (Andrew Harrer / Bloomberg via Getty Images / Getty Images)

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In its guide to presenting reviews on online customers, the FTC asks companies not to “prevent or discourage” consumers from submitting negative opinions. Although a “reasonable process” to ensure that the opinions are authentic is authorized, the FTC tells companies to “treat negative and positive examinations also”.

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