If you’ve ever ordered a pair of Hey Dude shoes online and wondered, “Hey, dude, where are my shoes?”—you may be eligible for a share of a $1.9 million settlement with the U.S. Federal Trade Commission (FTC).

The FTC announced recently that payments will be made directly to over 30,000 customers affected by issues such as shipping delays, out-of-stock notifications, and refunds after purchasing from the Hey Dude website.

According to the FTC, Hey Dude neglected to inform customers about shipping delays and failed to process cancellations or refunds for delayed orders. Additionally, the company has been accused of offering gift cards instead of cash refunds for items that were unavailable, breaching the Mail Order Rule.

Since Crocs, Inc. acquired Hey Dude in February 2022, the shoemaker faced accusations of managing online reviews by censoring negative feedback. Specifically, the FTC claims that Hey Dude only displayed reviews with four stars or higher, leading to a violation of the FTC Act by hiding over 80% of lower-rated reviews between January and June 2022.

The FTC revealed that the company only started posting all customer reviews after becoming aware of the ongoing investigation. Prior to this, they allegedly instructed employees to publish only positive feedback.

In September 2023, the shoe company resolved the claims of repeatedly violating the Mail Order Rule and FTC Act. Going forward, Hey Dude must publish all received reviews with limited exceptions for inappropriate content.

“This case highlights that retailers must not suppress negative reviews to mislead consumers,” stated FTC’s Bureau of Consumer Protection Director Samuel Levine. “When retailers fail to ship products on time, they must allow customers the option to cancel their orders and issue prompt refunds.”

YSL News has contacted Hey Dude, Inc. for their official response.

Who qualifies for a payout in the Hey Dude settlement?

The FTC is set to distribute nearly $1.9 million to 36,757 customers who ordered shoes from Hey Dude’s online store. Payments will be processed through PayPal and will go to those who faced unexpected cancellations and shipping delays or received gift cards instead of refunds for out-of-stock products. Customers are encouraged to redeem their PayPal payments within 30 days of receipt.

Those eligible for a settlement payment will receive an email from no-reply@consumersentinel.gov. Following this, they will receive another email from PayPal about the payment within 24 hours.

Any customers with questions regarding their payments or eligibility can reach out to the refund administrator, JND Legal Administration, at 877-495-1096. Additional information can be found on the FTC FAQ page concerning refund payments.