Online fashion giant Fashion Nova has been penalized by the Federal Trade Commission (FTC) and will pay $4.2 million following allegations of suppressing negative customer reviews on its website. The FTC complaint states that Fashion Nova deliberately blocked unfavorable reviews to mislead consumers about product quality and inflate its online reputation. This landmark case marks the FTC’s first action against a company for concealing negative customer feedback.
According to the FTC, Fashion Nova utilized a third-party review management system to filter and prevent reviews rated less than four stars from appearing on their website. While positive four- and five-star reviews were automatically published, hundreds of thousands of lower-rated, critical reviews were held back and never approved between late 2015 and November 2019. This practice created a skewed and overly positive perception of Fashion Nova products, deceiving customers who relied on these reviews for purchase decisions.
“Deceptive review practices cheat consumers, undercut honest businesses, and pollute online commerce,” stated Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Fashion Nova is being held accountable for these practices, and other firms should take note.” The FTC is taking a firm stance against businesses that manipulate online reviews to gain an unfair advantage.
By suppressing negative feedback, Fashion Nova deprived potential buyers of crucial information about product flaws, sizing issues, or quality concerns. This manipulation artificially boosted the average star rating of products, leading consumers to believe in higher product satisfaction than reality. Such practices erode consumer trust in online reviews and the businesses that employ them.
In addition to the enforcement action against Fashion Nova, the FTC is proactively addressing the broader issue of fake and manipulated reviews. The agency has sent formal notices to ten review management service companies, warning them that facilitating the suppression of negative reviews is a violation of the FTC Act. Furthermore, the FTC has issued new guidelines for online retailers and review platforms to promote transparency and authenticity in customer reviews. These guidelines aim to educate businesses on how to collect and display reviews in a way that is honest and does not mislead consumers.
This is not the first time Fashion Nova has faced FTC scrutiny. In April 2020, the company settled with the FTC for $9.3 million over allegations of failing to notify customers about shipping delays and illegally using gift cards instead of refunds for unshipped items. This second FTC action underscores a pattern of questionable business practices at Fashion Nova and highlights the agency’s commitment to holding the retailer accountable.
Under the newly proposed settlement, Fashion Nova is not only required to pay $4.2 million but is also legally prohibited from misrepresenting customer reviews or endorsements in the future. Crucially, Fashion Nova must now post all customer reviews for products currently on sale, with limited exceptions for reviews containing obscene, unlawful, or irrelevant content. This measure aims to ensure that consumers have access to a comprehensive and unbiased range of opinions before making a purchase from Fashion Nova.
The FTC’s actions against Fashion Nova and other businesses engaging in deceptive review practices demonstrate a clear message: manipulating online reviews will not be tolerated. The Commission is determined to protect both consumers and honest businesses from the harmful effects of fake and suppressed reviews. In October, the FTC warned over 700 companies about potential civil penalties for unlawful use of reviews and endorsements, signaling a broad crackdown on deceptive online marketing tactics.
The Commission’s 4-0 vote to issue the complaint and accept the consent agreement underscores the bipartisan consensus on the importance of fair online commerce and consumer protection. The proposed settlement with Fashion Nova will be published for public comment, after which the Commission will decide whether to finalize the consent order. This case serves as a significant reminder to all online businesses: transparency and honesty in customer reviews are not just ethical practices, but also legal requirements.
