CHICAGO (WLS) — The Federal Trade Commission announced that it is sending payments totaling more than $6.5 million to consumers as part of a settlement with Fashion Nova.
The payments will be issued to more than 500,000 consumers who were affected by the online retailer’s violations of the FTC’s Mail, Internet, or Telephone Order Merchandise Rule, according to the agency.
The FTC said 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.”