Why it matters: The settlement with Fashion Nova comes on the heels of a similar investigation and settlement that saw Fashion Nova reach a $1.75 million deal with prosecutors in four counties in California in December 2019, after repeatedly running afoul of a state law that requires companies to ship orders to consumers within 30 days. The retailer is further prohibited from violating the Rule in the future and must ship goods within one day of receipt of an order unless a shipping date is otherwise specified. Customers who received gift cards in lieu of a refund will also be eligible for refunds. The proposed settlement requires Fashion Nova to pay between $7.04 million and $9.3 million to the FTC for use in refunding customers who were harmed by the retailer’s actions, and $2.26 million to be refunded directly by the retailer to customers. Offering a gift card or store credit is not considered a refund under the Rule. For nonenumerated payment methods, sellers can provide refunds in the form of cash, check or money order, or sellers can provide refunds using the same method that the customer used. Under the Rule, a seller’s refund obligations are enumerated based on the buyer’s method of payment. The FTC further alleged that the retailer failed to refund customers for items that were not shipped, issuing gift cards instead. Orders $75 and Up,” “Fast Canada Shipping Only $10,” “Fast International 6-10 Shipping Only $15” and “Expect Your Items Quick!” throughout its website when, in fact, the retailer regularly failed to meet these express shipping promises and neither notified customers of shipping delays nor gave them the chance to cancel orders in exchange for a refund. If a retailer is unable to ship merchandise by the stated shipment date, it must inform the customer and receive customer consent for the delayed shipment, or offer a prompt refund.įashion Nova allegedly violated the Mail Order Rule by advertising “Fast Shipping,” “Free 2 Day Shipping on all U.S. Under the Rule, a retailer is prohibited from soliciting sales that it cannot reasonably expect to ship within a stated time or, if no time is stated, within 30 days. The FTC’s Mail, Internet, or Telephone Order Merchandise Rule (the Mail Order Rule, or Rule) applies to merchandise sold to customers online, by mail or by phone. Fashion Nova also provided gift cards as compensation for unshipped merchandise, instead of providing refunds. SHEIN has proven to be satisfactory to me and has much better product for the prices.On April 21, 2020, the FTC reached a proposed settlement with Fashion Nova, an American fast fashion retail company, for failing to ship merchandise in a timely manner without notifying customers and giving them an opportunity to cancel their orders. I will never buy from Fashion Nova ever again. See image of black stretch pants with wear marks on them. The last order I received had items that were damaged and looked as though they had been previously worn. They simply are not available or responsive. I could NEVER reach anyone, any customer service agent to discuss these problems and get a refund. Items are very cheaply made, fragile and wrongly sized EVERY TIME. So there's little chance that I'm just trying to squeeze into "skinny" items not suitable for my body type. Problems which I'd let go without complaint because I figured that it was simply a matter of miscalculation or misperception of what I saw when ordering on my part. Each and every item I received was either flawed or damaged or grossly mis-sized. I'd made several orders to Fashion Nova over a period of one year.
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