Fashion Nova Ordered to Pay FTC $4.2 Million Settlement for Suppressing Negative Reviews

The Federal Trade Commission (FTC) recently took action against Fashion Nova, an online fashion retailer, for suppressing negative reviews of its products. The fashion company was ordered to pay $4.2 million for suppressing negative reviews. The FTC alleged that Fashion Nova misrepresented that the product reviews on its website reflected the views of all purchasers who submitted reviews when, in fact, it suppressed reviews with ratings lower than four stars out of five.

This ruling is a reminder to businesses of all sizes that they cannot suppress negative reviews. The FTC takes a dim view of businesses that mislead consumers, and they have taken action against other businesses in the past for similar practices.

If you are a small business owner, there are a few things you can do to avoid running afoul of the FTC’s rules on reviews:

• Do not require only positive reviews in exchange for products. This is a common practice with affiliate programs, but it is illegal.

• Do not make guarantees of service that you cannot meet. If you promise a refund if a customer is not satisfied with their purchase, be prepared to honor that promise.

• Work with a business professional familiar with FTC regulations. An attorney can help you ensure that your business practices are compliant with the law.

If you have any questions about reviews or other advertising practices, you should consult with an attorney. Activated Law is familiar with legal matters such as these and can help.
Contact us today for a consultation.

Here are some additional tips for businesses that want to get reviews from customers:

• Be proactive in the customer service process. The best way to avoid negative reviews is to resolve customer issues quickly and to the customer’s satisfaction.

• Ask for reviews in a way that does not pressure or coerce customers. You can ask for reviews at the end of a transaction or by email, but you should not require customers to leave a review.

• Respond to all reviews, positive and negative. This shows that you value customer feedback and that you are willing to address any concerns that customers may have.

By following these tips, you can help ensure that your business complies with the FTC’s rules on reviews and that you are getting the most out of customer feedback.

If you need help with your advertising or marketing practices,
please contact Activated Law. We can help you create and implement a compliant advertising strategy that will help you grow your business.

Photo by : EKATERINA BOLOVTSOVA