Shoe retailer Hey Dude has agreed to pay a $1.95 million settlement following a Federal Trade Commission (FTC) lawsuit alleging violations of refund policies and suppression of reviews. The settlement will be distributed among 36,757 customers. The FTC’s complaint against Hey Dude includes allegations of failing to notify customers of shipping delays, not canceling orders or issuing refunds, and giving gift cards instead of refunds. The company also allegedly manipulated online reviews by only posting five-star reviews. Hey Dude, acquired by Crocs, Inc. in February 2022, paid the settlement to the FTC, who will use the funds to provide refunds to affected consumers. Eligible customers will receive a PayPal payment and will be notified via email. The settlement aims to rectify the harm caused by Hey Dude’s unlawful conduct.
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