The Federal Trade Commission (FTC) is sending refunds worth nearly $2.4 million to customers affected by Fashion Nova’s deceptive review practices.
The FTC alleged Fashion Nova blocked product reviews with ratings lower than four stars out of five on its website.
The company has been required to compensate affected consumers. It also agreed to a settlement order that prohibits the company from suppressing customer reviews of its products.
The FTC is sending checks and PayPal payments to 148,351 customers who filed a valid claim. Recipients are asked to cash their checks within 90 days or redeem their PayPal payments within 30 days.
This is the commission’s first case involving efforts to conceal negative customer reviews.
In 2023, FTC actions led to $330 million in refunds to consumers across the US.