Notice2022-01775
Fashion Nova, LLC; Analysis of Proposed Consent Order To Aid Public Comment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 28, 2022
Issuing agencies
Federal Trade Commission
Abstract
The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis of Proposed Consent Order to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order--embodied in the consent agreement-- that would settle these allegations.
Full Text
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<title>Federal Register, Volume 87 Issue 19 (Friday, January 28, 2022)</title>
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[Federal Register Volume 87, Number 19 (Friday, January 28, 2022)]
[Notices]
[Pages 4596-4597]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01775]
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FEDERAL TRADE COMMISSION
[File No. 192 3138]
Fashion Nova, LLC; Analysis of Proposed Consent Order To Aid
Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement; request for comment.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices. The attached Analysis of Proposed Consent Order to Aid
Public Comment describes both the allegations in the draft complaint
and the terms of the consent order--embodied in the consent agreement--
that would settle these allegations.
DATES: Comments must be received on or before February 28, 2022.
ADDRESSES: Interested parties may file comments online or on paper by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Please write ``Fashion Nova,
LLC; File No. 192 3138'' on your comment, and file your comment online
at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by following the instructions on the
web-based form. If you prefer to file your comment on paper, mail your
comment to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex D),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: Amber Lee (202-326-2764), Federal
Trade Commission, Office of the Secretary, Constitution Center, 400 7th
Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC 20024.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34,
notice is hereby given that the above-captioned consent agreement
containing a consent order to cease and desist, having been filed with
and accepted, subject to final approval, by the Commission, has been
placed on the public record for a period of thirty (30) days. The
following Analysis to Aid Public Comment describes the terms of the
consent agreement and the allegations in the complaint. An electronic
copy of the full text of the consent agreement package can be obtained
at <a href="https://www.ftc.gov/news-events/commission-actions">https://www.ftc.gov/news-events/commission-actions</a>.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before February 28,
2022. Write ``Fashion Nova, LLC; File No. 192 3138'' on your comment.
Your comment--including your name and your state--will be placed on the
public record of this proceeding, including, to the extent practicable,
on the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
Due to the COVID-19 pandemic and the agency's heightened security
screening, postal mail addressed to the Commission will be subject to
delay. We strongly encourage you to submit your comments online through
the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
If you prefer to file your comment on paper, write ``Fashion Nova,
LLC; File No. 192 3138'' on your comment and on the envelope, and mail
your comment to the following address: Federal Trade
[[Page 4597]]
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex D), Washington, DC 20580. If possible, submit your paper
comment to the Commission by overnight service.
Because your comment will be placed on the publicly accessible
website at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, you are solely responsible for
making sure your comment does not include any sensitive or confidential
information. In particular, your comment should not include sensitive
personal information, such as your or anyone else's Social Security
number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure your comment does not include
sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)--including in particular competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted on the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website--as legally
required by FTC Rule 4.9(b)--we cannot redact or remove your comment
from that website, unless you submit a confidentiality request that
meets the requirements for such treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
Visit the FTC website at <a href="http://www.ftc.gov">http://www.ftc.gov</a> to read this Notice and
the news release describing the proposed settlement. The FTC Act and
other laws that the Commission administers permit the collection of
public comments to consider and use in this proceeding, as appropriate.
The Commission will consider all timely and responsive public comments
that it receives on or before February 28, 2022. For information on the
Commission's privacy policy, including routine uses permitted by the
Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission (``Commission'') has accepted, subject
to final approval, an agreement containing a consent order from Fashion
Nova, LLC (``Fashion Nova''). The proposed consent order (``proposed
order'') has been placed on the public record for thirty days for
receipt of comments from interested persons. Comments received during
this period will become part of the public record. After thirty days,
the Commission will again review the agreement and the comments
received and will decide whether it should withdraw from the agreement
and take appropriate action or make final the agreement's proposed
order.
This matter involves Fashion Nova's marketing of its Fashion Nova
brand apparel. Fashion Nova primarily sold its apparel through its
<a href="http://www.fashionnova.com">www.fashionnova.com</a> website. The company invited customers to leave
product reviews on its website and sent its customers emails soliciting
product reviews for recent purchases. Each product web page on the
website with existing reviews displayed the product's average star
rating and a summary graph showing the number of reviews with each star
rating, followed by individual consumers' reviews and ratings.
According to the Commission's proposed complaint, from late 2015
through November 2019, Fashion Nova had four- and five-star reviews
automatically posted to its website but did not approve for posting or
publish lower-starred, more negative reviews.
The proposed complaint alleges that Fashion Nova violated Section
5(a) of the FTC Act by misrepresenting that the product reviews on
<a href="http://www.fashionnova.com">www.fashionnova.com</a> accurately reflected the views of all purchasers
who submitted product reviews to the website. The proposed order
contains provisions designed to prevent Fashion Nova from engaging in
similar acts and practices in the future and to provide monetary
relief.
Provision I prohibits Fashion Nova from misrepresenting: (1) That
product reviews on its website accurately reflect the views of all
purchasers who submitted reviews of its products; (2) that product
reviews are unedited; (3) that product reviews are displayed regardless
of the reviewer's opinion or rating; or (4) how product reviews factor
into any composite or overall rating of a product.
Provision II requires Fashion Nova to display all product reviews
for products currently offered for sale that are or were submitted to
its website. The provision provides that Fashion Nova is not required
to display reviews that are unrelated to its products and to its
customer service, delivery, returns, or exchanges. The provision also
provides that Fashion Nova is not required to display reviews that
contain unlawful, profane, obscene, vulgar, or sexually explicit
content, or content that is inappropriate with respect to race, gender,
sexuality, or ethnicity, so long as the criteria for withholding
reviews is applied uniformly to all reviews submitted. Finally, the
company is not required to offer the opportunity to submit reviews for
any or every product offered for sale on its website.
Provision III requires Fashion Nova to pay the Commission
$4,200,000 within eight days of the effective date of the order.
Provision IV sets out additional requirements related to the monetary
relief.
Provisions V through VIII of the proposed order are reporting and
compliance provisions. Provision V requires acknowledgement of the
order and dissemination of the order now and in the future to persons
with responsibilities relating to the subject matter of the order.
Provision VI ensures notification to the FTC of changes in corporate
status and mandates that the company submit an initial compliance
report to the FTC. Provision VII requires the company to create and
retain certain documents relating to its compliance with the order.
Provision VIII mandates that the company make available to the FTC
information or subsequent compliance reports, as requested.
Provision IX states that the proposed order will remain in effect
for 20 years, with certain exceptions.
The purpose of this analysis is to facilitate public comment on the
proposed order. It is not intended to constitute an official
interpretation of the complaint or proposed order, or to modify in any
way the proposed order's terms.
By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2022-01775 Filed 1-27-22; 8:45 am]
BILLING CODE 6750-01-P
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</html>Indexed from Federal Register on January 28, 2022.
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