Fast fashion giant Fashion Nova is known for boasting a dazzling lineup of celebrities and influencers who endorse the brand across the web. And if you have social media, chances are you’ve seen one or two sponsored posts from your favorite influencer.
Fashion Nova successfully grew a strong online reputation.
Part of their strategy also involved an automated review system, publishing positive reviews while holding less than 4-star reviews for approval. However, the FTC found that from late-2015 to November 2019, hundreds of thousands of lower-star reviews were never published.
While a spokesman for Fashion Nova claims that the allegations are “inaccurate,” the brand negotiated a $4.2 million payment with the FTC to settle the case.
From cases like the 2019 Sunday Riley scandal, where the CEO was exposed for instructing employees to create fake reviews, the FTC continues to crack down on high profile companies to enforce lawful review practices.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, reiterates the importance of utilizing reviews honestly when building your online reputation.
“Deceptive review practices cheat consumers, undercut honest businesses, and pollute online commerce,” said Levine. “Fashion Nova is being held accountable for these practices, and other firms should take note.”
Consumers can report all signs of fraud on the FTC website.
Building an online reputation is important – but it’s essential that review systems follow guidelines from the FTC and other review platforms, in order to build an authentic, trustworthy brand.