Revolve, a popular Gen Z retailer, is confronted with a $50 million class-action lawsuit alleging deceptive marketing practices. Filed in California, the suit claims that the brand violated federal trade law by having influencers disguise paid endorsements as authentic recommendations, misleading consumers. The lead plaintiff asserts that she paid significantly higher prices for products due to these misleading tactics. The lawsuit highlights a lack of required disclosures about the material connections between influencers and the brand. Revolve's annual report had already indicated risks related to such legal challenges due to influencer partnerships.
"For many years, Revolve used its position, payments and free merchandise to entice influencers to endorse and promote its products while failing to disclose any material relationship with the brand."
"The problem comes when you don't disclose," said Bogdan Enica, one of Negreanu's attorneys. He added that guidelines established by the Federal Trade Commission require influencers endorsing a product on social media to disclose any "material connection" with the brand.
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