The Federal Trade Commission (FTC) has announced plans to issue refunds to some Fashion Nova customers, citing the company’s involvement in “deceptive review practices.”

As detailed in a January 28 press release, the FTC is set to distribute nearly $2.4 million to those impacted as part of a settlement agreement. The agency claims that Fashion Nova “blocked negative reviews of its products from appearing on its website.”

“Fashion Nova falsely represented that the product reviews on its site reflected the opinions of all customers who submitted feedback, while it actually suppressed reviews that received ratings lower than four stars out of five,” stated the press release.

The FTC noted that this marks its first case targeting practices that hide unfavorable customer reviews.

Here’s what you should be aware of.

How Will Fashion Nova Customers Receive Their Refunds?

The FTC indicated that it will be issuing both checks and PayPal payments to over 148,000 customers who filed a valid claim. As per the press release, those receiving checks should cash them within 90 days, while PayPal payments should be redeemed within 30 days.

Additionally, officials mentioned that Fashion Nova has agreed to a settlement that prohibits it from suppressing customer reviews.

Customers who qualify for the refund are those who made purchases from Fashion Nova prior to November 21, 2019, and submitted a “valid claim” to the FTC before August 15, 2023.

What Were the FTC’s Allegations Against Fashion Nova?

In the initial complaint filed in January 2022, which was reviewed by YSL News, the FTC accused Fashion Nova of manipulating customer reviews.

“From late 2015 until mid-November 2019, Fashion Nova allowed only four- and five-star reviews to be automatically posted on its website, while failing to publish or approve hundreds of thousands of lower-starred, negative reviews,” the complaint stated.

The FTC also highlighted numerous instances in which the company suppressed negative reviews, contributing to a misleading portrayal of its products.

What is Fashion Nova?

According to information from the Fashion Nova website, the company operates an online store along with five retail locations in Southern California.

Established in 2006 by CEO Richard Saghian, Fashion Nova launched its online store in 2013, which the company claims has become the “primary source for shoppers around the globe.”

Fashion Nova did not respond immediately to YSL News’s inquiry for comments on Wednesday.

Fernando Cervantes Jr. is a trending news reporter. You can reach him at fernando.cervantes@gannett.com and follow him on X @fern_cerv_.