Fast fashion retailer Fashion Nova has been fined over $4 million by the Federal Trade Commission (FTC) over allegations that it concealed negative customer reviews of its products. In a complaint, the FTC alleged that between late 2015 and November 2019, the California-based retailer used a third-party online product review management interface to automatically post four- and five-star reviews to its website and block reviews with lower stars from being posted, pending the company’s approval. However, Fashion Nova allegedly did not approve the “hundreds of thousands of lower-starred, more negative reviews.” The case is the FTC’s first involving a company’s efforts to conceal negative customer reviews. “Deceptive review practices cheat consumers, undercut honest businesses, and pollute online commerce,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Fashion Nova is being held accountable for these practices, and other firms should take note.” Under the proposed settlement (pdf) between the FTC and Fashion Nova, the company will pay $4.2 …
Fashion Nova Fined More Than $4 Million Over Allegations It Concealed Negative Reviews
January 26, 2022
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