FTC Distributes $2.4 Million to Fashion Nova Customers Over Suppressed Reviews

The settlement marks the first FTC case targeting a company for concealing negative customer reviews.

The Federal Trade Commission (FTC) has issued nearly $2.4 million in refunds to over 148,000 Fashion Nova customers who filed valid claims.
The case stemmed from allegations that Fashion Nova suppressed hundreds of thousands of negative reviews on its website between 2015 and 2019.
The FTC's 2022 settlement required Fashion Nova to cease misrepresenting customer reviews and pay a $4.2 million penalty, part of which funded the refunds.
This is the first FTC case addressing a company's efforts to hide unfavorable customer reviews, setting a precedent for future regulatory actions.
Fashion Nova denies wrongdoing but agreed to the settlement, while the FTC has since introduced rules prohibiting the suppression of negative reviews.