Crocs-owned brand Hey Dude has agreed to pay $1.95 million to settle allegations by the US Federal Trade Commission (FTC) that it misled consumers by suppressing negative reviews, including more than 80 percent of those that did not award four or more stars. The FTC accuses the company of violating its rules in multiple ways between 2020 and 2022, such as failing to provide notice of shipping delays, canceling consumer orders and promptly issuing refunds, and issuing gift cards in lieu of refunds of the original payment.
The agency said it expects the company to use the fine to issue refunds to consumers harmed by its conduct. The FTC also banned the brand from misrepresenting reviews in the future and required it to disclose all reviews it receives.
