Fashion Nova

Trend Nova to Pay $4.2 Million for Allegedly Blocking Unfavourable Evaluations


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UPDATE: This story has been up to date with Trend Nova’s response to the settlement

Trend Nova is required to pay a $4.2 million settlement after being accused of hiding detrimental opinions posted on-line.

In a press launch, the Federal Commerce Fee (FTC) said that the California-based retailer, identified for its “quick trend” merchandise, will even be prohibited from concealing opinions from shoppers going ahead.

The FTC alleged in a grievance that Trend Nova misrepresented the opinions on its web site by suppressing buyer opinions with rankings decrease than 4 stars out of 5. The case marks the FTC’s first involving these particular allegations.

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In keeping with the FTC, Trend Nova used a third-party on-line product evaluate administration interface to publish opinions with 4 or 5 stars to its web site, whereas holding lower-starred opinions for the corporate’s approval.

It is alleged that between late 2015 and November 2019, Trend Nova by no means authorized or posted a whole lot of 1000’s of lower-starred, primarily detrimental, opinions.

“Misleading evaluate practices cheat shoppers, undercut sincere companies, and pollute on-line commerce,” stated Samuel Levine, director of the FTC’s Bureau of Client Safety. “Trend Nova is being held accountable for these practices, and different corporations ought to take notice.”

The FTC additionally introduced that it’s issuing notices to 10 firms that present evaluate administration companies, informing them that the failure to gather or publish detrimental opinions infringes on the FTC Act. On-line retailers will even obtain up to date tips from the FTC to make sure shoppers should not misinformed.

In an announcement shared with PEOPLE, Trend Nova stated “The Federal Commerce Fee’s allegations in opposition to Trend Nova are inaccurate and misleading.”

“Trend Nova by no means suppressed any web site opinions, and it instantly and voluntarily addressed the web site evaluate points when it grew to become conscious of them in 2019,” it continued. “Trend Nova is very assured that it will have gained in court docket and solely agreed to settle the case to keep away from the distraction and authorized charges that it will incur in litigation.”

It shared that the accusations stem from “Trend Nova’s reliance on a good third-party enterprise software program vendor, which supplied an choice to “autopublish” numerous star rankings in a drop-down menu.” The corporate “inadvertently failed to finish this course of given sure useful resource constraints throughout a interval of fast progress,” the assertion continued, sharing that the problem was fastened “a number of years in the past” and the “unpublished” opinions are actually posted “to the extent they’re truly in regards to the product they had been submitted for … “

“Trend Nova continues to be an entrepreneurial led firm solely targeted on offering an awesome assortment of trendy garments at very inexpensive costs,” per the assertion. “It prides itself on understanding that 80% of its enterprise comes from repeat prospects and does its greatest to pay attention fastidiously to buyer suggestions day by day and maintain getting higher in all the pieces that it does.”

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That is the second case the FTC has filed in opposition to the favored retailer in recent times.

In April 2020, Trend Nova agreed to pay $9.3 million to settle allegations that the corporate didn’t notify shoppers and provides them enough alternative to cancel orders that weren’t shipped in a well timed method.

The FTC additionally alleged the corporate illegally despatched out reward playing cards for unshipped merchandise as a substitute of offering refunds.

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