In addition to the false advertising and review throttling settlement, agreed to settle FTC charges that alleged the company did not let customers know about delays to their purchased product shipments, and used vouchers or gift cards to pay customers for products that ultimately did not ship at all.
The $4.2 Million agreement settles claims that spent years blocking bad reviews and thus creating distorted reviews to make their products appear far more positive than they would have otherwise. According to the FTC, did not publish product reviews that were fewer than four out of five stars. The FTC claimed that Fashion Nova have blocked the publishing of hundreds of thousands of reviews in which sentiments were negative, or thoughts and comments about products were poor, leading to a much higher average ratings (when rated in stars out of 5) and thus leading to a false impression made upon website visitors that products are better than they actually were according to consumer reviews. According to the FTC “suppressing a product's negative reviews deprives consumers of potentially useful information and artificially inflates the product's average star rating". The director of the Federal Trade Commission claimed that "Fashion Nova is being held accountable for these practices, and other firms should take note" when referring to this case being the first of its kind The first FTC settlement that intends to curb websites that suppress negative product review with an intention to distort products effectiveness and perception. The settlement was reached over charges made by the FTC that deliberately misled customers by blocking and omitting negative reviews from its website, leading to exaggeratedly positive reviews of its clothing and products on the website. What's the Fashion Nova Lawsuit Class Action About?Ī $4.2 Million settlement has been reached between and the Federal Trade Commission (FTC). Share Claim Form Deadline: Accepting Claims Estimated Payout: Varies Claim Form Deadline: AugProof required: No
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