Fashion brand Revolve is embroiled in a $50 million lawsuit. It stands accused of violating federal law by encouraging influencers to hide the fact that they were paid to endorse Revolve products. According to the LA Times, this deception fooled at least a million consumers.
The class action lawsuit, as quoted by the LA Times, reads: “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 lead plaintiff of the case is Ligia Negreanu. She claims that if she had known that influencers were paid to recommend Revolve items, she would have never purchased them. The items were, at the time, priced 10%-40% higher than those at competing companies.
Three influencers and Revolve’s affiliate companies were listed as co-defendants. Altogether, the suit is seeking $50 million in damages. The suit adds that, according to the FTC, disclosures should be “difficult to miss.” It cites the “paid partnership” label on Meta and the #ad hashtag as an example.
By contrast, these influencers just tagged Revolve in their posts.
Bogdan Enica, a lawyer representing Negreanu, told the outlet that “the problem comes when you don’t disclose.” He also noted that the FTC requires creators to disclose any “material connection” with their sponsoring brand.
For the FTC’s full guidance on how to disclose brand deals, click here.
