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(NEXSTAR) – The Federal Trade Commission (FTC) is sending payments to thousands of customers of the popular online shoe retailer Hey Dude as part of a deal to settle allegations that included refund violations and the suppression of user reviews.
All told, the FTC will distribute nearly $1.9 million to customers “who experienced unexpected cancellations and shipping delays or received gift cards from the company instead of refunds for out-of-stock items.”
The FTC says 36,757 people will receive PayPal payments, which should be redeemed within 30 days. Before it sends funds via PayPal, the FTC sends an email, which will come from an address ending in .gov.
The FTC said Hey Dude suppressed 80% of reviews that provided three or fewer stars on a five-star scale. Instead, between January 2020 and June 2022, the Commission alleges Hey Dude showed only all five-star reviews on its website.
Additionally, the FTC said Hey Dude violated its Mail, Internet, or Telephone Order Merchandise Rule on multiple fronts. That includes failing to notify buyers when there were shipping delays, failing to cancel orders and “issue prompt refunds” after failing to notify of delays, and giving consumers gift cards rather than refunds for orders that were not shipped.
If you have any questions about a potential settlement payment, call JND Legal, the refund administrator, at (877)-495-1096. The FTC site also has the answers to frequently asked questions about settlement payments.