Retailer Fashion Nova to pay $4.2 million in settlement with FTC

A computer is showing Fashion Nova's website.
Style Nova makes a speciality of quick style pushed by a legion of on-line influencers in addition to celebrities.
(Jerome Adamstein / Los Angeles Instances)

On-line style retailer Style Nova will likely be required to pay $4.2 million to settle allegations that it blocked adverse critiques of its merchandise from being posted to its web site, in keeping with the Federal Commerce Fee.

For the file:

3:30 p.m. Jan. 26, 2022An earlier model of this story incorrectly acknowledged that Style Nova was being fined $4.2 million by the Federal Commerce Fee. The fee is a settlement.

The company stated in a criticism Tuesday that the retailer, which relies in Vernon, misrepresented that the product critiques on its web site had been reflective of the views of all purchasers who submitted critiques, when in actual fact it suppressed critiques with scores decrease than 4 stars out of 5.

It stated that from late 2015 till November 2019, Style Nova used a third-party evaluation system that by no means permitted or posted the a whole lot of hundreds of lower-starred, extra adverse critiques.

Style Nova known as the company’s allegations “inaccurate and misleading.” It stated it by no means suppressed any web site critiques, and instantly and voluntarily addressed the web site evaluation points when it turned conscious of them in 2019.

“Style Nova is extremely assured that it might have received in courtroom and solely agreed to settle the case to keep away from the distraction and authorized charges that it might incur in litigation,” the corporate stated in a press release e-mailed to the Related Press.

The FTC stated this was the company’s first case involving an organization’s efforts to cover adverse buyer critiques.

“Misleading evaluation practices cheat shoppers, undercut sincere companies, and pollute on-line commerce,” Samuel Levine, director of the FTC’s Bureau of Shopper Safety, stated in a press release. “Style Nova is being held accountable for these practices, and different companies ought to take word.”

The FTC additionally stated that it’s sending letters to 10 firms, which it didn’t establish, providing “evaluation administration companies.” It stated the motion serves as a warning that avoiding the gathering or publication of adverse critiques violates the Federal Commerce Fee Act.

Style Nova makes a speciality of quick style pushed by a legion of on-line influencers in addition to celebrities. Rapper Cardi B’s second Style Nova assortment reportedly racked up greater than $1 million in gross sales inside 24 hours of its spring 2019 debut, in keeping with TMZ.

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