FTC VS. FASHION NOVA Online retailer Fashion Nova will pay $4.2 million to settle a Federal Trade Commission (FTC) case alleging the company blocked negative reviews of products on its site, the commission said Tuesday. It is the first case brought by the FTC involving a company's efforts to conceal negative customer reviews, and along with the settlement the commission released new guidance for online retailers regarding collecting and publishing customer reviews in a way that doesn’t mislead consumers. The FTC alleged that the California-based retailer used a third-party online product review management interface to automatically post four and five star reviews, and to hold lower starred reviews for the company’s approval. According to the complaint, Fashion Nova didn’t approve or post hundreds of thousands of lower starred and negative reviews between late 2015 and November 2019. “Deceptive review practices cheat consumers, undercut honest businesses, and pollute online commerce,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in a statement. “Fashion Nova is being held accountable for these practices, and other firms should take note.” Fashion Nova denied the FTC’s allegations, calling them “inaccurate and deceptive.” Read more here. |
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