The e-tailer, who has released collaborations with Cardi B and Megan Thee Stallion in recent years, faces a $4.2 million FTC fine for allegedly concealing unfavorable reviews on its website
from shoppers about the status of late orders, failing to give them a chance to cancel when merchandise was not able to be shipped in a timely manner. The company also illegally leveraged gift cards to compensate shoppers for unshipped goods instead of providing them with cash refunds. Ultimately, Fashion Nova paid out a total of $9.
Fashion Nova said its failure to review and manually release reviews that were filtered by a “reputable third-party enterprise software vendor” was accidental. “At one point in time, the company inadvertently failed to complete this process given certain resource constraints during a period of rapid growth,” the spokesperson said.
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