UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 

In the Matter of FILE NO. 192-3138 

FASIDON NOVA, LLC, AGREEMENT CONTAINING 

a limited liability company. CONSENT ORDER 

The Federal Trade Commission ("Commission") has conducted an investigation of certain 

acts and practices ofFashion Nova, LLC, ("Proposed Respondent"). The Commission's Bureau 

ofConsumer Protection ("BCP") has prepared a draft of an administrative Complaint ("draft 

Complaint"). BCP and Proposed Respondent, through its duly authorized officer, enter into this 

Agreement Containing Consent Order ("Consent Agreement") to resolve the allegations in the 

attached draft Complaint through a proposed Decision and Order to present to the Commission, 

which is also attached and made a part ofthis Consent Agreement. 

IT IS HEREBY AGREED by and between Proposed Respondent and BCP, that: 

1. The Proposed Respondent is Fashion Nova, LLC, a California limited liability company with 

its principal office or place of business at 2801 E. 46th Street, Vernon, California 90058. 

2. Proposed Respondent neither admits nor denies any allegations in the Complaint, except as 

specifically stated in the Decision and Order. Only for purposes ofthis action, Proposed 

Respondent admits the facts necessary to establish jurisdiction. 

3. Proposed Respondent waives: 

a. Any further procedural steps; 

b. The requirement that the Commission's Decision contain a statement offindings offact 

and conclusions oflaw; and 

c. All rights to seek judicial review or otherwise to challenge or contest the validity ofthe 

Decision and Order issued pursuant to this Consent Agreement. 

4. This Consent Agreement will not become part ofthe public record ofthe proceeding unless 

and until it is accepted by the Commission. Ifthe Commission accepts this Consent Agreement, 

it, together with the draft Complaint, will be placed on the public record for 30 days and 

information about them publicly released. Acceptance does not constitute final approval, but it 

serves as the basis for further actions leading to final disposition ofthe matter. Thereafter, the 

Commission may either withdraw its acceptance ofthis Consent Agreement and so notify 

Proposed Respondent, in which event the Commission will take such action as it may consider 

appropriate, or issue and serve its Complaint (in such fonn as the circumstances may require) 

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and decision in disposition ofthe proceeding, which may include an Order. See Section 2.34 of 

the Commission's Rules, 16 C.F.R. § 2.34 ("Rule 2.34"). 

5. Ifthls agreement is accepted by the Commission, and ifsuch acceptance is not subsequently 

withdrawn by the Commission pursuant to Rule 2.34, the Commission may, without further 

notice to Proposed Respondent: (1) issue its Complaint corresponding in form and substance 

with the attached draft Complaint and its Decision and Order; and (2) make information about 

them public. Proposed Respondent agrees that service ofthe Order may be effected by its 

publication on the Commission's website (fie.gov), at which time the Order will become final. 

See Rule 2.32(d). Proposed Respondent waives any rights it may have to any other manner of 

service. See Rule 4.4. 

6. When final, the Decision and Order will have the same force and effect and may be altered, 

modified, or set aside in the same maimer and within the same time provided by statute for other 

Commission orders. 

7. The Complaint may be used in construing the terms ofthe Decision and Order. No 

agreement, understanding, representation, or interpretation not contained in the Decision and 

Order or in this Consent Agreement may be used to vary or contradict the terms ofthe Decision 

and Order. 

8. Proposed Respondent agrees to comply with the terms ofthe proposed Decision and Order 

from the date that Proposed Respondent signs this Consent Agreement. Proposed Respondent 

understands that it may be liable for civil penalties and other relief for each violation ofthe 

Decision and Order after it becomes final. 

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____________________________ ____________________________________ 

FASHION NOVA, LLC FEDERAL TRADE COMMISSION 

By:_____________________________ By: ________________________________ 

Erica Meierhans Amber Lee 

General Counsel and Michael Ostheimer 

Chief Compliance Officer Attorneys 

Bureau of Consumer Protection 

Date:_____________________________ 

 APPROVED: 

Timothy J. Muris, Esq. Serena Viswanathan 

Chad S. Hummel, Esq. Associate Director 

Sidley Austin LLP Division of Advertising Practices 

Attorneys for Proposed Respondent 

Date: _____________________________ ____________________________________ 

 Samuel Levine

 Director

 Bureau of Consumer Protection 

Date: _______________________________ 

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192-3138 

UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 

COMMISSIONERS: Lina M. Khan, Chair 

Noah Joshua Phillips 

Rebecca Kelly Slaughter 

Christine S. Wilson 

In the Matter of DECISION AND ORDER 

FASHION NOVA, LLC, DOCKET NO. C- a limited liability company. 

DECISION 

The Federal Trade Commission ("Commission") initiated an investigation of certain acts and 

practices ofthe Respondent named in the caption. The Commission's Bureau ofConsumer 

Protection ("BCP") prepared and furnished to Respondent a draft Complaint. BCP proposed to 

present the draft Complaint to the Commission for its consideration. Ifissued by the 

Commission, the draft Complaint would charge the Respondent with violations ofthe Federal 

Trade Com.mjssion Act. 

Respondent and BCP thereafter executed an Agreement Containing Consent Order ("Consent 

Agreement"). The Consent Agreement includes: 1) statements by Respondent that it neither 

admit nor deny any ofthe allegations in the Complaint, except as specifically stated in this 

Decision and Order, and that only for purposes ofthis action, it admits the facts necessary to 

establish jurisdiction; and 2) waivers and other provisions as required by the Commission's 

Rules. 

The Commission considered the matter and determined that it had reason to believe that 

Respondent has violated the Federal Trade Commission Act, and that a Complaint should issue 

stating its charges in that respect. The Commission accepted the executed Consent Agreement 

and placed it on the public record for a period of3 0 days for the receipt and consideration of 

public comments. The Commission duly considered any comments received from interested 

persons pursuant to Section 2.34 ofits Rules, 16 C.F.R. § 2.34. Now, in further conformity with 

the procedure prescribed in Rule 2.34, the Commission issues its Complaint, makes the 

following Findings, and issues the following Order: 

Findings 

1. The Respondent is Fashion Nova, LLC, a California limited liability company with its 

principal office or place ofbusiness at 2801 E. 46th Street, Vernon, California 90058. 

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2. The Commission has jurisdiction over the subject matter ofthis proceeding and over the 

Respondent, and the proceecling is in the public interest. 

ORDER 

Definitions 

For purposes ofthis Order, the following definition applies: 

"Respondent" means Fashion Nova, LLC, a limited liability company, and its successors 

and assigns. 

Provisions 

I. Prohibited Misrepresentations 

IT IS ORDERED that Respondent, and Respondent's officers, agents, employees; and 

attorneys, and all other persons in active concert or participation with any ofthem, who receive 

actual notice ofthis Order, whether acting directly or indirectly, in connection with the 

advertising, promotion, offering for sale, or sale of any product must not make any 

misrepresentation, expressly or by implication, about product reviews or endorsements ofthe 

product, including any misrepresentation: 

A. That product reviews on Respondent's website accurately reflect the views ofall 

purchasers who submitted reviews ofRespondent's products on the website; 

B. That product reviews or endorsements of any products are unedited; 

C. That product reviews or endorsements of any products are presented regardless ofthe 

endorser's opinion or rating; or 

D. About bow product reviews factor into any composite or overall rating ofa product. 

II. Product Review Display 

IT IS FURTHER ORDERED that Respondent must display, on each ofits websites 

disp1aying product reviews, all reviews for products currently offered for sale that are or were 

submitted by consumers to such website, including all reviews that Respondent or its agents 

previously withheld from public view. Provided that Respondent: (a) is not required to display 

reviews that are unrelated to Respondent's products and unrelated to Respondent's customer 

service, delivery, returns, or exchanges; (b) 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 to such website; and (c) is not required to 

offer the opportunity to submit reviews for any or every product offered for sale on such website. 

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III. Monetary Relief 

IT IS FURTHER ORDERED that: 

A. Respondent must pay to the Commission $4,200,000 as monetary relief. 

B. Such payment must be made within 8 days ofthe effective date ofthis Order by 

electronic fund transfer in accordance with instructions provided by a representative of 

the Commission. 

IV. Additional Monetary Provisions 

IT IS FURTHER ORDERED that: 

A. Respondent relinquishes dominion and all legal and equitable right, title, and interest in 

all assets transferred pw-suant to this Order and may not seek the return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in any 

subsequent civil litigation by or on behalfofthe Commission to enforce its rights to any 

payment pursuant to this Order, such as a nondischargeability complaint in any 

bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to sustain an action by 

or on behalfofthe Commission pursuant to Section 523(a)(2)(A) ofthe Bankruptcy 

Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for 

such purposes. 

D. All money paid to the Commission pursuant to this Order may be deposited into a fund 

administered by the Commission or its designee to be used for relief, including consumer 

redress and any attendant expenses for the administration of any redress fund. If a 

representative ofthe Commission decides that direct redress to consumers is wholly or 

partially impracticable or money remains after redress is completed, the Commission may 

apply any remaining money for such other relief (including consumer information 

remedies) as it determines to be reasonably related to Respondent's practices alleged in 

the Complaint. Any money not used is to be deposited to the U.S. Treasury. Respondent 

has no right to challenge any activities pursuant to this Provision. 

E. In the event of default on any obligation to make payment under this Order, interest, 

computed as ifpursuant to 28 U .S.C. § 1961(a), shall accrue .from the date of default to 

the date ofpayment. In the event such default continues for 10 days beyond the date that 

payment is due, the entire amount will immediately become due and payable. 

F. Each day ofnonpayment is a violation through continuing failure to obey or neglect to 

obey a final order ofthe Commission and thus will be deemed a separate offense and 

violation for which a civil penalty shall accrue. 

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G. Respondent acknowledges that its Taxpayer Identification Number (Employer 

Identification Number), which Respondent has previously submitted to the Commission, 

may be used for collecting and reporting on any delinquent amount arising out ofthis 

Order, in accordance with 31 U.S.C. § 7701. 

V. Acknowledgments of the Order 

IT IS FURTHER ORDERED that Respondent obtain acknowledgments ofreceipt ofthis 

Order: 

A. Respondent, within 10 days after the effective date ofthis Order, must submit to the 

Commission an acknowledgment ofreceipt ofthis Order sworn under penalty ofperjury. 

B. Respondent must deliver a copy ofthis Order to: (1) all principals, officers, directors, 

and LLC managers and members; (2) all employees having managerial responsibilities 

for conduct related to the subject matter ofthe Order and all agents and representatives 

who participate in conduct related to the subject matter ofthe Order; and (3) any business 

entity resulting from any change in structure as set forth in the Provision titled 

Compliance Reports and Notices. Delivery must occur within 10 days after the effective 

date ofthis Order for current personnel. For all others, delivery must occur before they 

assume their responsibilities. 

C. From each individual or entity to which Respondent delivered a copy ofthis Order, 

Respondent must obtain, within 30 days, a signed and dated acknowledgment ofreceipt 

ofthis Order. 

VI. Compliance Reports and Notices 

IT IS FURTHER ORDERED that Respondent make timely submissions to the 

Commission: 

A. Ninety days after the issuance date ofthis Order, Respondent must submit a compliance 

report, sworn under penalty ofperjury, in which Respondent must: 

1. Identify the primary physical, postal, and email address and telephone number, as 

designated points of contact, which representatives ofthe Commission may use to 

communicate with Respondent; 

2. Identify all of Respondent's businesses by all oftheir names, telephone numbers, and 

physical, postal, email, and Internet addresses; 

3. Describe the activities of each business, including the goods and services offered, the 

means ofadvertising, marketing, and sales; 

4. Describe in detail whether and how tlie Respondent is in compliance with each 

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Provision ofthis Order, including a discussion of all ofthe changes the Respondent 

made to comply with the Order; and 

5. Provide a copy of each Acknowledgment ofthe Order obtained pursuant to this 

Order, unless previously submitted to the Commission. 

B. Respondent must submit a compliance notice, sworn under penalty ofperjury, within 14 

days of any change in the following: 

1. Any designated point of contact; or 

2. The structure ofRespondent or any entity that Respondent has any ownership interest 

in or controls directly or indirectly that may affect compliance obligations arising 

under this Order, including: creation, merger, sale, or dissolution ofthe entity or any 

subsidiary, parent, or affiliate that engages in any acts or practices subject to this 

Order. 

C. Respondent must submit notice ofthe filing ofany bankruptcy petition, insolvency 

proceeding, or similar proceeding by or against Respondent within 14 days ofits filing. 

D. Any submission to the Commission required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: "I declare under penalty ofperjury under the laws ofthe United States of 

America that the foregoing is true and correct. Executed on: __" and supplying the 

date, signatory's full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, al] submissions to 

the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by 

overnight coUiier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau ofConsumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue 

NW, Washington, DC 20580. The subject line must begin: In re Fashion Nova, LLC. 

VII. Recordkeeping 

IT IS FURTHER ORDERED that Respondent must create certain records for 10 years after 

the issuance date ofthe Order, and retain each such record for 5 years, unless otherwise specified 

below. Specifically, Respondent must create and retain the following records: 

A. Accounting records showing the revenues from all goods or services sold, the costs 

incurred in generating those revenues, and resulting net profit or loss; 

B. Personnel records showing, for each person providing services in relation to any aspect of 

the Order, whether as an employee or otherwise, that person's: name; addresses; 

telephone numbers; job title or position; dates ofservice; and (ifapplicable) the reason 

for termination; 

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C. Copies or records ofall consumer or other complaints relating to customer reviews, 

whether received directly or indirectly, such as through a third party, and any response; 

D. All records necessary to demonstrate full compliance with each provision ofthis Order, 

including all submissions to the Commission; 

E. A copy ofeach unique advertisement or other marketing material making a representation 

subject to this Order and a copy of each product review submitted to Respondent; and 

F. For 5 years from the date created or received, all records, whether prepared by or on 

behalfofRespondent, that tend to show any lack ofcompliance by Respondent with this 

Order. 

VITI. Compliance Monitoring 

IT IS FURTHER ORDERED that, for the purpose ofmonitoring Respondent's compliance 

with this Order: 

A. Within 10 days ofreceipt ofa written request from a representative ofthe Commission, 

Respondent must: submit additional compliance reports or other requested information, 

which must be sworn under penalty ofperjury, and produce records for inspection and 

copymg. 

B. For matters concerning this Order, representatives ofthe Commission are authorized to 

communicate directly with Respondent. Respondent must pe1mit representatives ofthe 

Commission to interview anyone affiliated with Respondent who has agreed to such an 

interview. The interviewee may have counsel present. 

C. The Commission may use all other lawful means, including posing through its 

representatives as consumers, suppliers, or other individuals or entities, to Respondent or 

any individual or entity affiliated with Respondent, without the necessity ofidentification 

or prior notice. Nothing in this Order limits the Commission's lawful use of compulsory 

process, pursuant to Sections 9 and 20 ofthe FTC Act, 15 U.S.C. §§ 49, 57b-l. 

IX. Order Effective Dates 

IT IS FURTHER ORDERED that this Order is final and effective upon the date ofits 

publication on the Commission's website (fie.gov) as a final order. This Order will terminate 20 

years from the date ofits issuance (which date may be stated at the end ofthis Order, near the 

Commission's seal), or 20 years from the most recent date that the United States or the 

Commission files a complaint (with or without an accompanying settlement) in federal court 

alleging any violation ofthis Order, whichever comes later;provided, however, that the filing of 

such a complaint will not affect the duration of: 

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A. Any Provision in this Order that terminates in less than 20 years; 

B. This Order ifsuch complaint is filed after the Order has terminated pursuant to this 

Provision. 

Provided, further, that ifsuch complaint is dismissed or a federal court rules that Respondent did 

not violate any provision ofthe Order, and the dismissal or ruling is either not appealed or 

upheld on appeal, then the Order will terminate according to this Provision as though the 

complaint had never been filed, except that the Order will not terminate between the date such 

complaint is filed and the later ofthe deadline for appealing such dismissal or ruling and the date 

such disrrussal or ruling is upheld on appeal. 

By the Commission. 

April J. Tabor 

Secretary 

SEAL: 

ISSUED: 

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