(WAFB) - Online fast-fashion retailer Fashion Nova will pay the federal government $9.3 million to be refunded to customers impacted by its “illegal” business practices, the Federal Trade Commission (FTC) claims.
The FTC made several complaints against Fashion Nova which are detailed below.
Fashion Nova didn’t refund consumers for the items that it did not ship, the FTC complained.
The company instead offered gift cards, which are not considered refunds by the federal government.
Offering gift cards instead of a refund option for items sold online, by phone, or by mail is banned.
Fashion Nova also did not notify consumers about shipping delays or give customers the chance to cancel their orders.
Of the $9.3 million, $7.04 million will be refunded through the FTC.
Fashion Nova is responsible for directly refunding $2.26 million.
Any customer who received a gift card instead of a refund can make a claim when the FTC established its claims process. More information will be forthcoming.
Fashion Nova is also now required to ship ordered merchandise within one day of receipt of an order when the company doesn’t specify a shipping date.
The company is well known among online shoppers for creating its own versions of designer clothing worn by celebrities.