Big Win for Consumers: Hey Dude Settles with FTC for $1.9 Million

Original article: https://www.heydude.com/
FTC statement: https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-sends-nearly-19-million-refunds-customers-harmed-hey-dudes-violations-mail-order-rule
Previous FTC allegations: https://www.ftc.gov/news-events/news/press-releases/2023/09/online-shoe-seller-hey-dude-inc-pay-195-million-violating-ftcs-mail-internet-telephone-order-rule
FTC press statement: https://www.ftc.gov/news-events/news/press-releases/2024/08/ftc-sends-nearly-19-million-refunds-customers-harmed-hey-dudes-violations-mail-order-rule
FTC FAQ page: https://www.ftc.gov/enforcement/cases-proceedings/refunds/refund-programs-frequently-asked-questions

In a major victory for consumers, the U.S. Federal Trade Commission (FTC) has secured a $1.9 million settlement from Hey Dude, holding the company accountable for deceptive practices and delayed shipping. This settlement sends a strong message to corporations that attempts to deceive and manipulate consumers will not be tolerated.

Hey Dude, now owned by Crocs, Inc., was accused of failing to notify customers of shipping delays, denying cancellation/refund requests for delayed orders, and issuing gift cards instead of cash refunds. This is a blatant violation of the Mail Order Rule, which protects consumers from such exploitative practices.

Adding to their list of deceptive tactics, Hey Dude was also caught suppressing negative reviews. The FTC revealed that the company only posted positive reviews on its website, hiding the true sentiments of its customers. This misleading curation of reviews is a violation of the FTC Act, as it paints a false picture of the consumer experience.

Samuel Levine, Director of the FTC's Bureau of Consumer Protection, stated:

"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. 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."

As a result of the settlement, more than 30,000 affected customers will receive direct payments. The FTC will distribute the payout to 36,757 consumers who faced unexpected cancellations, shipping delays, or received gift cards instead of refunds. Eligibility for the payout will be communicated via email, with payments sent through PayPal.

This settlement serves as a reminder that corporations cannot act with impunity and disregard the rights and trust of their customers. The FTC's action ensures that Hey Dude is held accountable, and consumers are rightfully compensated for the company's deceptive practices. Stay woke, folks!