Fashion Nova customers to get $2.4 million in refunds, FTC says – what to know

Some customers who bought products from the fast fashion retailer Fashion Nova could be getting a refund over its "deceptive review practices," according to the Federal Trade Commission.

The FTC said it is sending a total of nearly $2.4 million to affected consumers as part of a settlement. Here’s what to know:

Fashion Nova customers get $2.4 million in refunds

What we know:

The FTC accused Fashion Nova of allegedly blocking negative reviews of its products from being posted on its website. Specifically, the retailer "suppressed reviews" with ratings lower than four stars out of five," the FTC said in a statement. The agency said this was its first case involving efforts to conceal negative customer reviews.

Dig deeper:

Fashion Nova was first launched in 2006 by Richard Saghian as a small chain of stores in Southern California that targeted trendy women’s fashion "on a budget," according to its website. It launched online in 2013 and has grown in sales exponentially since – utilizing social media marketing and influencers to expand its fast fashion brand over the past decade. 

What they're saying:

In its Jan. 28 announcement, the FTC said Fashion Nova agreed to a settlement order that prohibits the company from suppressing customer reviews of its products currently being sold, "with the exception of reviews that contain obscene, sexually explicit, racist, or unlawful content and reviews that are unrelated to the product or customer services like shipping or returns." 

It added that Fashion Nova "was also required to pay money to compensate affected consumers."

Fashion Nova did not immediately respond to a request for comment.

What's next:

The FTC is sending checks and PayPal payments to 148,351 Fashion Nova customers who filed a valid claim. Consumers selected their payment method when they completed their claim form. Recipients should cash their checks within 90 days, as indicated on the check, or redeem their PayPal payments within 30 days, the FTC said.

What you can do:

Consumers who have questions about their payment should contact the refund administrator, JND Legal Administration, at 855-678-0018 or visit the FTC’s website to view frequently asked questions about the refund process. The FTC said it never requires people to pay money or provide account information to get a refund.