FTC sends more than US$6.5 Million to consumers harmed by Fashion Nova
The Federal Trade Commission is sending payments totaling more than $6.5 million to more than 500,000 consumers who were affected by online retailer Fashion Nova’s violations of the FTC’s Mail, Internet, or Telephone Order Merchandise Rule.
According to the FTC, Fashion Nova promised consumers fast shipping of their orders but regularly failed to meet those promises, didn’t properly notify consumers of shipping delays, and didn’t give them the chance to cancel their orders and receive prompt refunds. The company also illegally used gift cards to compensate consumers for unshipped merchandise instead of providing refunds. Gift cards are not considered refunds under the requirements of the Mail Order Rule.
The FTC is providing more than $6.5 million in payments to 518,552 consumers, including more than 40,000 consumers who live outside the United States—in 169 different countries.