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DELILAH VINZON, Cal. Bar No. 222681

 dvinzon@ftc.gov

ROBERT J. QUIGLEY, Cal. Bar No. 302879

 rquigley@ftc.gov

Federal Trade Commission 

10990 Wilshire Blvd., Suite 400

Los Angeles, CA 90024

Tel: (310) 824-4300; Fax: (310) 824-4380

Attorneys for FEDERAL TRADE COMMISSION

UNITED STATES DISTRICT COURT

DISTRICT OF NEVADA

FEDERAL TRADE COMMISSION, 

 Plaintiff,

v.

HEY DUDE INC., a corporation,

 Defendant.

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Case No. 

COMPLAINT FOR PERMANENT 

INJUNCTION, MONETARY 

RELIEF, AND OTHER RELIEF

 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), for its 

Complaint alleges:

1. The FTC brings this action under Sections 5(a)(1), 13(b), and 19 of the 

Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a)(1), 53(b), and 57b, 

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and the FTC’s Trade Regulation Rule Concerning the Sale of Mail, Internet, or 

Telephone Order Merchandise (“MITOR” or the “Rule”), 16 C.F.R. Part 435, which 

authorize the FTC to seek, and the Court to order, permanent injunctive relief, 

monetary relief, and other relief for Defendant’s acts or practices in violation of 

Section 5(a) of the FTC Act, 15 U.S.C. §45(a), and in violation of MITOR, 16 C.F.R. 

Part 435. Defendant’s violations are in connection with (i) failing to offer consumers, 

clearly and conspicuously and without prior demand, an option to consent to a delay 

in shipment or to cancel an order and receive a prompt refund when Defendant failed 

to ship properly completed orders for merchandise within the timeframe required by 

the Rule, and failing to deem an order cancelled and make a prompt refund as 

required by the Rule, and (ii) misrepresenting that the product reviews on the Hey 

Dude Shoes website accurately reflected the views of all purchasers who submitted 

reviews of the products when, in fact, Defendant was suppressing negative reviews.

JURISDICTION AND VENUE

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 

1337(a), and 1345.

3. Venue is proper in this District under 28 U.S.C. § 1391(b)(2), (c)(2), (d),

and 15 U.S.C. § 53(b). 

PLAINTIFF

4. The FTC is an independent agency of the United States Government 

created by the FTC Act, which authorizes the FTC to commence this district court 

civil action by its own attorneys. 15 U.S.C. §§ 41–58. The FTC enforces Section 5(a) 

of the FTC Act, 15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or 

practices in or affecting commerce. The FTC also enforces MITOR, which requires 

mail-, Internet-, or telephone-based sellers to offer consumers an option to consent to 

a delay in shipping or to cancel an order and receive a prompt refund when a seller 

cannot ship as required by the Rule, and to deem an order cancelled and make a 

prompt refund to buyers under certain circumstances.

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DEFENDANT

5. Defendant Hey Dude Inc. (“Hey Dude”), formerly known as Happy One, 

LLC (“Happy One”), is a Delaware Corporation with its principal place of business 

located at 6335 North Hollywood Boulevard, Suite 100, Las Vegas, Nevada 89115. 

Hey Dude is also successor in interest to Lucky Top, Inc. (“Lucky Top”), which 

formerly operated under the d/b/a Hey Dude Shoes USA. Hey Dude, Happy One, and 

Lucky Top each at times conducted business under the name “Hey Dude Shoes USA”

and they are referred to herein, individually and collectively, as “Hey Dude Shoes.” 

6. Defendant Hey Dude transacts or has transacted business in this District 

and throughout the United States. At all times material to this Complaint, acting alone 

or in concert with others, Hey Dude has advertised, marketed, or sold merchandise to 

consumers throughout the United States. 

COMMERCE

7. At all times relevant to this Complaint, Defendant has maintained a 

substantial course of trade in or affecting commerce, as “commerce” is defined in 

Section 4 of the FTC Act, 15 U.S.C. § 44. 

DEFENDANT’S BUSINESS ACTIVITIES

8. Hey Dude Shoes is a shoe retailer that advertises, markets, and sells 

shoes to consumers throughout the United States and in other countries. 

9. Hey Dude Shoes advertises, markets, solicits orders for, and sells 

merchandise over the Internet on the website www.heydude.com, and on the 

predecessor website www.heydudeshoesusa.com. Hey Dude Shoes also advertises, 

markets, and solicits orders for merchandise via social media advertisements.

10. Hey Dude Shoes includes or has included images and descriptions of the 

merchandise it sells on the Hey Dude Shoes website. From webpages for specific 

products, consumers can select the quantity, size, and color of a product, and add it to 

their bag for purchase. Hey Dude Shoes depicts or has depicted its merchandise as 

new and free from defect.

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Defendant’s Shipping and Fulfillment Practices

11. To purchase merchandise in their bag, consumers must select a shipping 

option, provide a shipping address, and submit payment information. Hey Dude 

Shoes has accepted and consumers have tendered payment for merchandise and any 

shipping costs in the form of credit or debit cards, PayPal, Amazon Pay, and ZIP.

12. Hey Dude Shoes has made representations about the speed of its 

shipping in solicitations, including on the Hey Dude Shoes website. For example, 

Hey Dude Shoes has stated in a banner at the top of the Hey Dude Shoes website, 

which has been visible from multiple webpages, “Free 2 Day Shipping on Select 

Styles.” 

13. Hey Dude Shoes has also made statements about the speed of its

shipping on other pages of the Hey Dude Shoes website. For example, at times, Hey 

Dude Shoes has represented on the Shipping & Delivery page that the “Hey Dude 

Shoes Shipping & Delivery Policies” are that: “All orders placed Monday-Thursday 

are processed and shipped within 1 business day. Orders placed Friday afternoon –

Sunday will be processed the following Monday.” At times, Hey Dude Shoes has

represented that “[a]ll orders placed Monday-Thursday are processed in 1-2 business 

days.”

14. Numerous consumers throughout the United States have visited and 

purchased merchandise from the Hey Dude Shoes website. 

15. In numerous instances after consumers have submitted orders for 

merchandise on Hey Dude Shoes’s website, Hey Dude Shoes has not shipped one or 

more items of ordered merchandise to consumers. In numerous instances, such items 

were out of stock or Hey Dude Shoes shipped merchandise that was materially 

different from what consumers ordered.

16. In numerous instances when Hey Dude Shoes has not shipped one or 

more items of ordered merchandise, Hey Dude Shoes has not cancelled the order and 

provided consumers a prompt refund. In numerous instances when a refund has been 

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provided for unshipped merchandise, Hey Dude Shoes has not refunded the full price 

paid for the merchandise.

17. In numerous instances, when Hey Dude Shoes has not shipped one or 

more items of ordered merchandise, per company policy, Hey Dude Shoes has

cancelled the order and instead of a refund to the consumers’ form of payment, Hey 

Dude Shoes has issued consumers a gift card that could only be used on Hey Dude 

Shoes’s website in the amount charged for the unshipped merchandise.

18. In numerous instances after consumers submitted orders for merchandise 

on Hey Dude Shoes’s website, Hey Dude Shoes has not physically placed ordered 

merchandise in the possession of a carrier in the time represented. 

19. In numerous instances when Hey Dude Shoes has not physically placed 

ordered merchandise in the possession of a carrier in the time represented, Hey Dude 

Shoes has not offered the buyer, without prior demand, an option either to consent to 

a delay in the shipment or to cancel the order and receive a prompt refund. 

20. In numerous instances when Hey Dude Shoes has not offered the buyer

the option to cancel the order or consent to a delay in shipment, Hey Dude Shoes has 

not canceled the order and have not provided consumers with a prompt refund. 

21. Numerous consumers have complained directly to Hey Dude Shoes

about late shipping, undelivered, or incomplete orders, including by phone, email, 

and Hey Dude Shoes’s social media accounts. Many consumers have reported that it 

was difficult to reach Hey Dude Shoes and obtain information about the status of

their orders. Many consumers have filed complaints against Hey Dude Shoes, 

including with the Better Business Bureau.

22. Hey Dude Shoes has not maintained records or documentary proof 

establishing its use of systems and procedures which assure compliance with the Rule 

in the ordinary course of business, including such systems and procedures to provide 

buyers offers and prompt refunds referenced in Paragraphs 19 and 20 above. 

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Defendant’s Review Suppression Practices

23. Each product on Hey Dude Shoes’s website provides consumers with the 

opportunity to review the product and rate it on a five-star scale. At the bottom of 

each product page is a section entitled “Real, unedited reviews from HEYDUDE 

fans.” The section contains buttons labeled “Write A Review” and “Ask a Question.”

Consumers who click the button are invited to give the product a star rating from one 

to five, write a review, rate the comfort, size and width of the shoe, and click a button 

to “POST” it. If there are no customer reviews for a particular product, consumers are 

encouraged to “BE THE FIRST TO WRITE A REVIEW.” 

24. The average star rating for each product with existing reviews is featured 

multiple times on Hey Dude Shoes’s website. The average star rating and number of 

reviews are displayed with the photo, product name, and price in the gallery of 

products that link to each product’s page. 

25. Each product page with existing reviews displays the product’s average 

star rating at the top right of the page together with the product name and price, and 

buttons to select a size and “ADD TO CART.” 

26. The section on each product page entitled “Real, unedited reviews from 

HEYDUDE fans” displays the average star rating depicted as a number and shaded 

stars, a summary bar graph of the number of reviews with each star rating, and 

images to reflect the spectrum of how customers viewed the size (“Runs Small” to 

“Runs Large”), width (“Feels too narrow” to “Feels too wide”), and comfort (“Poor”

to “Great”) of the product.

27. The review section also displays the individual ratings and the text of the 

reviews. The page offers the option for consumers to search reviews through a query 

box and the option to select from a variety of search buttons such as “look,” “fit,” 

“size,” “weight,” “color,” etc.

28. Hey Dude Shoes uses a third-party online product review management 

interface. The interface allows website operators to choose to have certain reviews 

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automatically post based upon their star ratings and hold lower-starred reviews for 

approval prior to posting.

29. From at least January 2020 through June 2022, Hey Dude Shoes chose to 

have five-star reviews post to the website with little scrutiny, and held lower-starred 

reviews for more individualized review. Hey Dude Shoes held, rejected, and did not 

publish more than 80% of their one-, two-, and three- star reviews. 

30. Prior to June 2022, Hey Dude Shoes had written policies and procedures 

instructing its staff to publish certain types of reviews only if they were positive in 

nature. 

31. Based on the facts and violations of law alleged in this Complaint, the 

FTC has reason to believe that Defendant is violating or is about to violate laws 

enforced by the Commission, because, among other things, Defendant continued its 

unlawful acts or practices despite knowledge of numerous complaints, and Defendant 

altered its unlawful policies or practices only after receiving a Civil Investigative 

Demand from the FTC.

VIOLATIONS OF THE FTC ACT

32. Section 5 of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or 

deceptive acts or practices in or affecting commerce.”

33. Misrepresentations or deceptive omissions of material fact constitute 

deceptive acts or practices prohibited by Section 5(a) of the FTC Act.

Count I – Deceptive Customer Review Practices

34. In connection with the advertising, promotion, offering for sale, or sale 

of Hey Dude Shoes products, Hey Dude Shoes has, through means described in 

Paragraphs 23–30, represented, directly or indirectly, expressly or by implication, that 

the product reviews on the Hey Dude Shoes website accurately reflect the views of all 

purchasers who submitted reviews of Hey Dude Shoes products to the website.

35. In truth and in fact, the product reviews on the Hey Dude Shoes website 

did not accurately reflect the views of all purchasers who submitted reviews of the 

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products because in numerous instances Hey Dude Shoes suppressed product reviews 

with ratings lower than four stars.

36. Therefore, Hey Dude Shoes’s representations as set forth in Paragraph 

34 are false or misleading and constitutes a deceptive act or practice in violation of 

Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).

VIOLATIONS OF THE MAIL, INTERNET, 

OR TELEPHONE ORDER MERCHANDISE RULE 

37. The Rule prohibits sellers from soliciting any order for the sale of 

merchandise ordered through the mail, via the Internet, or by telephone or facsimile 

transmission “unless, at the time of the solicitation, the seller has a reasonable basis to 

expect that it will be able to ship any ordered merchandise to the buyer” either 

“[w]ithin that time clearly and conspicuously stated in any such solicitation; or [i]f no 

time is clearly and conspicuously stated, within thirty (30) days after receipt of a 

properly completed order from the buyer.” 16 C.F.R. § 435.2(a)(1). 

38. “Receipt of a properly completed order” means the time at which a seller 

receives full or partial payment tendered in the proper amount and form, including 

authorization to charge an existing charge account, and an order “containing all of the 

information needed . . . to process and ship the order.” 16 C.F.R. § 435.1(c). 

39. “Shipment” means the act of physically placing the merchandise in the 

possession of a carrier. 16 C.F.R. § 435.1(e).

40. Where a seller is unable to ship merchandise within the time stated in the 

solicitation or within 30 days, if no time is given, the seller must offer to the buyer 

“clearly and conspicuously and without prior demand, an option either to consent to a 

delay in shipping or to cancel the buyer’s order and receive a prompt refund.” 16 

C.F.R. § 435.2(b)(1).

a. Any such offer “shall be made within a reasonable time after the seller 

first becomes aware of its inability to ship,” but in no event later than the 

time stated or within 30 days if no time is stated. 16 C.F.R. 

§ 435.2(b)(1). 

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b. The offer must “fully inform the buyer regarding the buyer’s right to 

cancel the order and to obtain a prompt refund” and provide either a 

definite revised shipping date or, “where the seller lacks a reasonable 

basis for providing a definite revised shipping date[,] . . . inform the 

buyer that the seller is unable to make any representation regarding the 

length of delay.” 16 C.F.R. § 435.2(b)(1)(i).

41. A seller must “deem an order cancelled and . . . make a prompt refund 

to the buyer whenever [t]he seller has notified the buyer of its inability to make 

shipment and has indicated its decision not to ship the merchandise” or “[t]he seller 

fails to offer the option [to consent to a delay in shipping or cancel the order] and has 

not shipped the merchandise” within the time stated or within 30 days, if no time is 

given. 16 C.F.R. § 435.2(c)(4), (5).

42. Where there is a third-party credit sale, a “refund” requires a seller to 

send either (a) a credit memorandum to the creditor to remove the charge from the 

buyer’s account and a copy of the memorandum to the buyer with the date it sent the 

memorandum to the creditor and the charge amount to be removed; or (b) a statement 

to the buyer acknowledging cancellation of the order and representing that the seller 

has not taken any action which will result in a charge to the buyer’s account. 16 

C.F.R. § 435.1(d)(2).

43. Where the buyer tenders payment by means other than cash, check, 

money order, or a credit sale, the seller must either (a) send instructions to the entity 

that transferred payment to the seller instructing the entity to return to the buyer the 

amount tendered in the form tendered, along with a statement to the buyer setting 

forth the instructions, the date of the instructions, and the amount to be returned; (b) 

return the amount tendered in the form of cash, check, or money order to the buyer; 

or (c) send the buyer a statement acknowledging the order was cancelled and 

representing that the seller has not taken any action regarding the order which will 

access any of the buyer’s funds. 16 C.F.R. § 435.1(d)(3).

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44. The Rule requires that a refund be sent by any means as fast and reliable 

as first class mail within seven working days of the date on which the buyer’s right to 

a refund vests under the Rule. 16 C.F.R. § 435.1(b)(1).

45. Pursuant to Section 18(d)(3) of the FTC Act, 15 U.S.C. § 57a(d)(3), and 

16 C.F.R. Part 435.2, a violation of the Rule constitutes an unfair or deceptive act or 

practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

Count II – Failure to Offer Buyer Options 

46. As described in paragraphs 11–22 above, in numerous instances, in 

connection with mail, Internet, or telephone order sales, Hey Dude Shoes failed to 

ship properly completed orders for merchandise within the timeframe required by the 

Rule, and failed to clearly and conspicuously offer buyers, without prior demand, an 

option either to consent to a delay in shipping or to cancel an order and receive a 

prompt refund.

47. Therefore, Hey Dude Shoes’s acts and practices, as set forth in 

Paragraph 46, violate Section 435.2(b) of the Rule, 16 C.F.R. § 435.2(b), and 

therefore are unfair or deceptive acts or practices in violation of Section 5(a) of the 

FTC Act, 15 U.S.C. § 45(a).

Count III – Failure to Make Prompt Refunds

48. As described in paragraphs 11–22 above, in numerous instances, in 

connection with mail, Internet, or telephone order sales, when Hey Dude Shoes failed 

to ship properly completed orders for merchandise within the timeframe required by 

the Rule and failed to offer buyers the opportunity to consent to a delay in shipping or 

to cancel their order, Hey Dude Shoes did not cancel those orders and make prompt 

refunds to buyers. In addition, when Hey Dude Shoes notified buyers that it was 

unable to make shipment and indicated its decision not to ship merchandise, Hey 

Dude Shoes did not cancel those orders and make prompt refunds to buyers.

49. Therefore, Hey Dude Shoes’s acts or practices, as set forth in Paragraph

48, violate Section 435.2(c) of the Rule, 16 C.F.R. § 435.2(c), and therefore are unfair 

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or deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. 

§ 45(a). 

CONSUMER INJURY 

50. Consumers are suffering, have suffered, and will continue to suffer 

substantial injury as a result of Hey Dude Shoes’s violations of the FTC Act and 

MITOR. Absent injunctive relief by this Court, Defendant is likely to continue to 

injure consumers and harm the public interest. 

PRAYER FOR RELIEF

Wherefore, Plaintiff requests that this Court: 

A. Enter a permanent injunction to prevent future violations of the FTC Act 

and the Rule by Defendant;

B. Award monetary and other relief within the Court’s power to grant; and

 C. Award any additional relief as the Court determines to be just and 

proper. 

 Respectfully submitted,

 

 

Dated: _____________________ ____________________________

 DELILAH VINZON, Cal. Bar No. 222681

 dvinzon@ftc.gov

ROBERT J. QUIGLEY, Cal. Bar No. 302879

 rquigley@ftc.gov

Federal Trade Commission 

10990 Wilshire Blvd., Suite 400

Los Angeles, CA 90024

Tel: (310) 824-4300; Fax: (310) 824-4380

Attorneys for Federal Trade Commission

09/11/2023

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