Facts

Fashion Nova made promises to consumer for years that they offer fast shipping of their products. Fashion Nova, at times, failed to refund customers for items that it did not ship but instead issued gift cards. The Federal Trade Commission sued Fashion Nova as a result.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that Defendant violated the agency's Mail Order Rule when Defendant made promises of fast shipping of their products but regularly failed to meet its promises. Defendant also violated the Mail Order Rule by failing to notify customers of shipping delays and giving the chance to cancel orders and receive prompt refunds. Additionally, Plaintiff contended that Defendant failed to refund consumers for items it did not ship by issuing gift cards in place of refunds.

DEFENDANT CONTENTIONS: Defendant neither admitted nor denied any of the allegations, except specifically in the stipulation.

Result

FTC and Fashion Nova settled for $9,300,000.00 which is to be used to refund consumers were harmed.