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AMERICANS are eligible for a one-time payment from a $1.9 million pot after a popular online shoe company reportedly failed its customers.
Individuals who were impacted between 2020 and 2022 are eligible to claim part of the hefty settlement.
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The Federal Trade Commission is sending one-time payments to thousands of customers who’ve shopped at shoe retailer Hey Dude.
The earnings come after Hey Dude allegedly suppressed user reviews and violated refund policies.
Additionally, Hey Dude was said to conceal 80 percent of reviews that had three or fewer stars out of five.
Between January 2020 and June 2022, the FTC alleged that Hey Dude only showcased five-star reviews on its website.
Part of the settlement, which was finalized in September 2023, claimed that the footwear brand violated the Commision’s Mail, Internet, and Telephone Order Merchandise Rule.
Hey Dude reportedly failed to notify buyers of any delays or canceled orders.
When they did notify their customers, the retailer failed to “issue prompt refunds.”
After the case was settled, Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, released a statement.
“As this case makes clear, when retailers publish consumer reviews online, they cannot suppress negative reviews to paint a deceptive picture of the consumer experience,” said Levine.
“And when retailers don’t ship merchandise on time, they must give buyers the option to cancel their orders and promptly get their money back.
“We will continue to hold online retailers accountable for violations of the FTC Act and other laws we enforce,” he concluded.
A company spokesperson also released a statement following the settlement.
“Since our acquisition of the company, we have worked diligently with the FTC to come to a quick and satisfactory resolution, and we are pleased to put this behind us and move forward with the excellent customer experience, transparency and accountability for which Crocs’ brands are known,” they said in an email.
WHO IS AFFECTED?
According to the FTC, the $1.9 million will be distributed to those “who experienced unexpected cancellations and shipping delays or received gift cards from the company instead of refunds for out-of-stock items.”
The FTC will be sending a fraction of the $1.9 million pot to 36,757 people who bought shoes from Hey Dude.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
The affected customers will receive an email ending in .gov stating that they will receive a payment via PayPal.
After they’ve received their initial email, customers will get an email from PayPal.
Once the payment has gone through, customers have 30 days to accept it.
Should buyers need further information, they can contact the refund administrator at 1-877-495-1096.
They can also visit the FTC’s frequently asked questions section on their website.
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