![]() “The Federal Trade Commission’s allegations against Fashion Nova are inaccurate and deceptive,” a company spokesperson told Sourcing Journal Wednesday. Any comments will be taken into account before the proposed consent order is finalized. The FTC will soon publish a description of that agreement, and it will be open for public comments for 30 days through the Federal Register. It also voted 4-0 to accept Fashion Nova’s consent agreement, in which the company acquiesced to the settlement without an admission of liability. “The Commission is committed to ensuring that consumers and honest businesses are not cheated by dishonest review practices,” the FTC wrote, in the latest case, noting it voted unanimously to issue the complaint. Ultimately, Fashion Nova paid out a total of $9.3 million to settle the issue. The company also illegally leveraged gift cards to compensate shoppers for unshipped goods instead of providing them with cash refunds. ![]() April 2020 saw the prominent women’s wear brand - which has also worked with the likes of Khloe Kardashian, Kylie Jenner and Amber Rose - incur allegations it withheld information from shoppers about the status of late orders, failing to give them a chance to cancel when merchandise was not able to be shipped in a timely manner. The case is not Fashion Nova’s first brush with the FTC. From late 2015 through November 2019, however, Fashion Nova failed to post the hundreds of thousands of missives from nonplussed shoppers, depriving other consumers of information that could potentially impact their purchasing decisions, and artificially inflating product ratings. The brand used the platform to automatically post positive reviews, while holding lower-starred reviews for its later approval, the FTC wrote. The complaint alleges Fashion Nova worked with a third-party online product review management platform to suppress shopper product ratings lower than four stars out of five. The case is the first in the commission’s history to challenge a company for concealing unfavorable reviews posted to its website. The FTC, which is tasked with protecting consumers and businesses from deceptive or anti-competitive practices, revealed Tuesday that the Vernon, Calif.-based e-tailer will be required to pay $4.2 million for misrepresenting shopper sentiments about its apparel and accessories. The fast fashion juggernaut is being fingered by the Federal Trade Commission (FTC) for filtering consumer feedback on its e-commerce site - and settling the issue will come with a hefty fine, Sourcing Journal reported this week. Fashion Nova, an erstwhile brand collaborator to artists Cardi B and Megan Thee Stallion, is in hot water over alleged efforts to suppress negative reviews of its products online.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |