LOS ANGELES (KNX) — Los Angeles-based fast-fashion retailer Fashion Nova has been ordered to pay $4.2 million to settle claims it blocked customers from leaving negative online reviews of its products, according to the Federal Trade Commission.
Federal authorities alleged the online clothing company misrepresented product reviews on its website. The FTC said the company suppressed reviews boasting fewer than four out of five stars.
"Deceptive review practices cheat consumers, undercut honest businesses and pollute online commerce," Samuel Levine, director of the FTC's Bureau of Consumer Protection, said in a statement. "Fashion Nova is being held accountable for these practices, and other firms should take note."
According to the FTC complaint, Fashion Nova employed a third-party online product review management service to auto-post high reviews and hold low-star reviews for company review.
Authorities alleged Fashion Nova never approved those negative reviews, in effect concealing potential product flaws from customers.
The agency also announced that it is sending letters to 10 companies offering review management services, placing them on notice that suppressing negative reviews violates the FTC Act.
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