Fashion Nova owes customers $2.4 million after hiding negative reviews, feds say
Fashion Nova blocked negative reviews from appearing on its website, federal authorities said. Now, the fast-fashion retailer owes nearly $2.4 million in refunds.
The Federal Trade Commission on Tuesday, Jan. 28, said it's sending checks and PayPal payments to more than 148,000 customers who filed a claim after shopping with the California-based company.
Recipients are encouraged to cash their checks within 90 days or redeem PayPal payments within 30 days, the commission said.
In March 2022, Fashion Nova agreed to pay $4.2 million to settle accusations that it tried hiding negative customer reviews, blocking those with 'ratings lower than four stars out of five,' the FTC said.
The retailer, which bills itself 'the world's leading quick-to-market apparel' brand, was also ordered to pay back customers duped by its 'deceptive review practices,' according to the commission.
Officials didn't disclose the refund amounts.
'Deceptive review practices cheat consumers, undercut honest businesses, and pollute online commerce,' Samuel Levine, director of the FTC's Bureau of Consumer Protection, said at the time.
'Fashion Nova is being held accountable for these practices, and other firms should take note,' he said.
McClatchy News reached out to Fashion Nova for comment Jan. 30 and was awaiting a response.
Under the terms of the settlement, reviews posted to Fashion Nova's website must accurately reflect the views of all other buyers who posted product reviews, court documents show. Customer reviews must appear regardless of their rating and remain unedited, the feds said.
The FTC didn't say when customers should expect to receive their refunds.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Malibu Boats's Q1 Earnings Call: Our Top 5 Analyst Questions
Malibu Boats delivered first-quarter results that surpassed Wall Street's revenue expectations but fell slightly short on non-GAAP profit. Management attributed sales growth to higher unit volumes in the Malibu segment, a favorable product mix, and increased average selling prices from premium offerings. CEO Steve Menneto noted that new models—particularly the M230 and 25 LSV for Malibu and the Cobia 265 and 285 for Cobia—captured significant customer interest during the boat show season. However, management described the broader retail environment as challenging, citing elevated interest rates and persistent macroeconomic uncertainty weighing on discretionary purchases. Is now the time to buy MBUU? Find out in our full research report (it's free). Revenue: $228.7 million vs analyst estimates of $223.3 million (12.4% year-on-year growth, 2.4% beat) Adjusted EPS: $0.72 vs analyst expectations of $0.74 (2.4% miss) Adjusted EBITDA: $28.32 million vs analyst estimates of $26.29 million (12.4% margin, 7.7% beat) Operating Margin: 7.6%, up from -36.8% in the same quarter last year Boats Sold: 1,431, up 162 year on year Market Capitalization: $610.3 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Craig Kennison (Baird): Inquired about targeted dealer inventory levels. CFO Bruce Beckman stated inventories are expected to end the season below last year, reflecting both company and dealer preferences amid macro uncertainty. Eric Wold (Texas Capital Securities): Asked about promotional activity in response to competitors' inventory challenges. CEO Steve Menneto said Malibu Boats has not elevated promotions and relies on new product strength to remain competitive. Michael Swartz (Truist): Sought clarity on tariff exposure and future risk. Beckman responded that about 18–20% of costs are sourced internationally, but exposure is spread across multiple categories and closely managed. Ryan Williams (KeyBanc): Questioned demand trends and cost levers if conditions deteriorate. Beckman highlighted the company's highly variable cost structure and strong balance sheet as tools to weather further downturns. Michael Albanese (Benchmark): Asked about the Saltwater segment's recovery. Beckman noted improvement in Florida but described the rebound as a return to broader market trends, rather than a full recovery. In the coming quarters, our team will watch (1) continued traction of newly launched models during the next selling season, (2) dealer inventory trends and whether Malibu Boats maintains its disciplined approach, and (3) any shifts in the promotional environment as industry competitors address their own inventory positions. The effectiveness of tariff mitigation and updates to the 2026 model year lineup will also be important markers of execution. Malibu Boats currently trades at $31.80, up from $29.66 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Stem (STEM) Soars 8.8%: Is Further Upside Left in the Stock?
Stem, Inc. STEM shares ended the last trading session 8.8% higher at $6.71. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 33.7% loss over the past four weeks. STEM is benefiting from its focus on high-margin software and services, particularly PowerTrack and managed services, along with cost reductions and improved operational efficiency. This company is expected to post quarterly loss of $3.00 per share in its upcoming report, which represents a year-over-year change of +31.8%. Revenues are expected to be $33.1 million, down 2.7% from the year-ago quarter. While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For Stem, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STEM going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Stem is part of the Zacks Computers - IT Services industry. Cognizant CTSH, another stock in the same industry, closed the last trading session 0.8% higher at $77.59. CTSH has returned -4.3% in the past month. Cognizant's consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $1.26. Compared to the company's year-ago EPS, this represents a change of +7.7%. Cognizant currently boasts a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stem, Inc. (STEM) : Free Stock Analysis Report Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
2,000-GPU data center launches powered exclusively by reusable batteries — 12-megawatt storage system built on hundreds of repurposed EV batteries
When you buy through links on our articles, Future and its syndication partners may earn a commission. A data center housing 2,000 GPUs is now successfully run with off-the-grid power using solar panels and repurposed batteries. According to Bloomberg, the site is powered by solar panels that generate at least 12 megawatts of power and backed up by reused EV batteries with up to 63 megawatt-hours of capacity. This should be sufficient power for approximately 10,000 average U.S. homes, with the batteries providing power for over five hours. 2,000 GPUs have an estimated power draw of about four megawatts, so the on-site battery capacity should be enough for around 15 hours. The company behind this project is Redwood Materials, which was founded by JB Straubel, one of the people behind Tesla. Redwood's main business is battery recycling, and it has been focusing on getting battery materials from old EV modules that are no longer useful for transportation and have since been disposed of. But even though these batteries have already reached their end-of-life, Redwood discovered that they still retain about 50% of their capacity. This meant that they can be reused for other purposes that do not require high performance, such as driving an electric car. 'Think of this almost like a retirement home for these batteries,' said Redwood Materials Chief Commercial Officer Cal Lankton. These reused batteries are much cheaper than buying new ones while simultaneously delivering the same performance. So, aside from reducing the burden of disposing of old batteries, it also allows businesses to save on capital expenditure when setting up a backup power supply. Crusoe Energy operates the data center that Redwood is powering with its reused EV batteries. The former is part of the $500-billion OpenAI Stargate project, although it's unclear if the Nevada site is part of that initiative. Lankton says that they expect to deploy more similar systems for the remainder of 2025, with 5 GWh capacity slated to go live next year. Redwood also claims that it's working on 100 MW projects — a crucial development for power-hungry data centers that require stable and consistent power. The exponential growth of data centers is putting a strain on our current electricity supply. Many tech companies are investing in small modular reactors to control their own power, but it will still take years before this technology starts to go online. While already available renewable energy like wind and solar is ideal, they're oftentimes unreliable due to changing conditions, forcing data centers to rely on fossil fuel sources. So, solutions like this help ensure that these tech companies will get the kind of clean power they need without putting a strain on the local electric grid. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
