“Online retailers need to know that our Mail Order Rule requires them to notify customers in the event of shipping delays and offer the right to cancel with a full refund-not just a gift card or a store credit.”Īccording to the complaint, Fashion Nova violated the Rule in two ways. “The same rules that we have enforced for nearly 50 years against catalogers and other mail-order companies also apply to online sellers,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. The FTC’s complaint against Fashion Nova alleges that it violated the agency’s Mail, Internet, Or Telephone Order Merchandise Rule (the Mail Order Rule), which applies to merchandise sold to consumers online, by mail, or by phone. Under the terms of Fashion Nova’s proposed settlement with the FTC, the money will be used to refund consumers who were harmed by the company’s violations. Online fashion retailer Fashion Nova will pay $9.3 million to settle Federal Trade Commission charges that it didn’t properly notify consumers and give them the chance to cancel their orders when it failed to ship merchandise in a timely manner, and that it illegally used gift cards to compensate consumers for unshipped merchandise instead of providing refunds. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items. Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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