Fashion Nova, the ultra-popular online clothing retailer, is facing a new class action lawsuit claiming it used fake sales and discounts to trick shoppers into buying products at prices that weren’t really deals. The complaint, filed by five consumers in Washington federal court, says that Fashion Nova’s website design intentionally deceives customers into believing they’re getting an amazing deal.
The Claims
The plaintiffs accuse Fashion Nova of filling its website with pretend sales, countdown timers, strikethrough prices, and big discount percentages, to make shoppers believe certain products are available for a limited time at a deep price cut. The lawsuit claims “Defendant’s website creates an illusion that customers are receiving a limited-time discount. ”
One example from the lawsuit is the “Weekend Sherpa Denim Jacket”. The jacket showed a regular price of $69.99 but was always sold at a discount. At different times, the price dropped to $48.99 and then to $28.98, according to the plaintiffs. They say these shifting prices convinced them, and other shoppers, to buy quickly, even though there was never a real “regular” price at all.
Deceptive Practices Alleged
The complaint says Fashion Nova is fully aware of its advertising practices. The lawsuit even points to earlier trouble with the Federal Trade Commission (FTC), which found that Fashion Nova had blocked negative reviews and sometimes failed to ship items on time.
In May 2023, Fashion Nova agreed to pay a $4.2 million settlement to refund affected customers after the FTC’s investigation into the company’s practices. However, the new class action claims the misleading sales and deceptive advertising never really stopped, saying, “Despite these charges, Fashion Nova has continued its practice of making misleading representations about its products and prices.”
Who’s Included and What the Suit Seeks
The lawsuit aims to cover customers nationwide who bought Fashion Nova products listed as being on sale before March 29, 2024, through the company’s website. The plaintiffs are demanding damages, certification as a class action, and an injunction to block the retailer from making these sales claims in the future.
They are suing under various advertising, consumer protection, and competition laws in California and Oregon. Charges include breach of contract, breach of warranty, and unjust enrichment.
Previous Investigations and Ongoing Concerns
The complaint highlights that Fashion Nova’s problems with the FTC are not a thing of the past. The former $4.2 million settlement resolved customer complaints about blocked reviews and delayed shipping, but as this lawsuit makes clear, shoppers say the so-called “sales” are ongoing.
The suit notes, “Fashion Nova website prominently advertises sales. These advertisements include purported regular prices, purported discounts, and often countdown timers that purportedly show when the sales end…These advertisements are false and misleading. The sales are not limited in time, and the discounts continue to be available. The strikethrough prices do not actually represent the regular prices that most consumers are paying. The regular price is actually the purported discounted price. ”
Next Steps
As legal proceedings unfold, the class action seeks to stop Fashion Nova’s “deceptive conduct” and potentially return funds to thousands of dissatisfied shoppers. The outcome could force some of fashion’s biggest e-commerce brands to rethink countdown sales and discount codes for good.
