Fashion Nova Settles Consumer Suit With California Prosecutors; $250K Going To Customers
OAKLAND (CBS SF) – Alameda County District Attorney Nancy O'Malley and four other county prosecutors in the state reached a $1.75 million settlement with fast-fashion retailer Fashion Nova Inc. late last week over its returns policy and shipping delays.
O'Malley said the settlement in the consumer protection action, which was filed in Alameda County Superior Court and signed by Judge Tara Desautels on Thursday, calls for Fashion Nova, which is based in Vernon in the Los Angeles area, to pay $250,000 in restitution to customers and another $1.5 million in costs, penalties and other fees.
The retailer, which is backed by celebrities such as Cardi B and Kylie Jenner, did not admit to any wrongdoing as part of the settlement of the civil complaint, which was filed by O'Malley as well as the district attorneys of Napa, Sonoma and Los Angeles counties.
O'Malley said Fashion Nova operates in the "fast-fashion" industry, which she said refers to clothing that moves rapidly from fashion shows or popular culture to mass production and retail sale.
She said the majority of Fashion Nova's sales take place online over its Internet website.
The civil action alleged that Fashion Nova violated consumers' rights by repeatedly failing to fulfill and ship orders within the legally mandated timeframe.
According to state law, online sales delivered to California customers must generally be shipped within 30 days, and customers must be given a refund or written notice if the shipment is delayed.
O'Malley said until at least April 2018, Fashion Nova repeatedly failed to ship items to California customers within 30 days and did not provide adequate notices about the delays.
The complaint also alleged that Fashion Nova committed other violations of the law, such as failing to adequately disclose its return policy on the website.
"These types of consumer protection laws in California are on the books to make sure retailers treat their customers in an equitable and professional manner," O'Malley said in a statement.
"When consumers place an order over the internet, they are entitled to receive the items promptly or get a legally adequate explanation why they haven't," she said.
O'Malley said Fashion Nova cooperated fully in the investigation and agreed to make changes to its business practices.
Fashion Nova didn't respond to a request for a comment on the settlement.
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