Customers of a popular online shoe retailer could be eligible for part of a $1.9 million settlement, the Federal Trade Commission announced
to resolve allegations it violated refund policies and suppressed user reviews, including more than 80% of reviews that failed to give the company four or more stars. Instead, the FTC said, the company chose to post all five-star reviews – the highest rating – with little scrutiny.
“As this case makes clear, when retailers publish consumer reviews online, they cannot suppress negative reviews to paint a deceptive picture of the consumer experience. And when retailers don’t ship merchandise on time, they must give buyers the option to cancel their orders and promptly get their money back,” Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said in a statement when the settlement was announced.
In addition to the review issues, Hey Dude, which was acquired by Crocs Inc. in 2022, failed to send notices when shipping was delayed, failed to cancel customer orders or issue prompt refunds and gave customers gift cards instead of refunds to the original payment method when an item was ordered but not shipped.According to the FTC, 36,757 people will receive payments via PayPal related to the settlement. The first email notification will come from reply@consumersentinel.
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