The FTC alleges that from January 2020 to June 2022, the company chose to have all five-star reviews (the best rating) posted on its website with little scrutiny, while in many cases rejecting less-favorable reviews.
Crocsomfort shoe maker HeyDude agreed to pay $1.95 million to the Federal Trade Commission to settle charges that it misled consumers by keeping negative product reviews off its website, the agencyThe FTC said that the suppressed reviews included more than 80% of reviews with ratings of less than four or more stars out of a possible five.
“As this case makes clear, when retailers publish consumer reviews online, they cannot suppress negative reviews to paint a deceptive picture of the consumer experience,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement. “And when retailers don’t ship merchandise on time, they must give buyers the option to cancel their orders and promptly get their money back.
It also alleges that from January 2020 to June 2022, the company chose to have all five-star reviews posted on its website with little scrutiny, while in many cases rejecting less-favorable reviews. HeyDude’s “written policies and procedures instructed staff to publish certain types of reviews only if they were positive,” according to the FTC. HeyDude only started publishing all consumer reviews after finding out it was under investigation, according to the FTC.
The proposed court order, announced by the FTC, requires HeyDude to change its conduct going forward and to pay $1.95 million, which the FTC expects to use to provide refunds to consumers harmed by its unlawful conduct.Crocs shares closed down 0.66% at $92.75 and rose slightly in after-hours trading.
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