- The FTC has reached an agreement with online fashion retailer Fashion Nova, LLC to resolve allegations that it blocked the posting of negative reviews on its website in violation of FTC law.
- The complaint alleged that between 2015 and 2019, Fashion Nova used a third-party online product review management interface to automatically display positive customer reviews on its website and block hundreds of thousands of product reviews with ratings less than four out of five stars, while misrepresenting product reviews on its website as reflecting honest consumer opinions.
- Under the terms of the proposed consent order, Fashion Nova will pay $4.2 million to the FTC. Fashion Nova is also required to publish all relevant customer reviews of products currently sold on its website and misrepresentation of customer reviews or other recommendations, among other things, is prohibited. The regulations will be subject to a 30-day public comment period after their publication in the Federal Register.
- Also this month, the FTC provided new guidance to online retailers and review platforms on collecting and publishing customer reviews in a non-deceptive manner, and it sent letters to 10 service providers. management, advising them that failure to selectively collect or post negative reviews is a violation of FTC law.
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