Retailer Fashion Nova suppressed negative online reviews, $2.4M going to customers
Published On Feb 5, 2025, 7:38 AM
Fashion Nova has been ordered to pay nearly $2.4 million to over 148,000 customers as a settlement for allegedly suppressing negative customer reviews. The Federal Trade Commission (FTC) found that the company only allowed four- and five-star reviews to be published on its site, while hiding hundreds of thousands of lower-rated reviews. This case marks the FTC's first significant action against a company for review suppression. Fashion Nova is now prohibited from hiding reviews and is required to display all customer feedback.
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The case could adversely impact Fashion Nova's reputation and customer trust, potentially leading to decreased sales. Consumer backlash against unethical business practices is strong and may cause customers to look elsewhere for fast fashion. However, the company may adapt to the situation and strengthen its marketing to regain consumer confidence.