Revolve, a well-known Gen Z shop, is facing a$ 50 million complaint from the company, alleging that at least one million people were deceived by its social media marketing strategies.
The Cerritos-based online store is accused of violating federal trade rules by operating an marketing “scheme” in which influencers veiled paid product endorsements as true recommendations in order to increase Revolve’s sales in a class-action lawsuit filed on Friday in California Central District Court.
Revolve has relied on its position, payments, and free merchandise to persuade influential people to accept and promote its goods without disclosing any substantive associations with the brand, according to the lawsuit.
Revolve members did not respond to a request for comment right away.
Lead plaintiff Ligia Negreanu claimed in the lawsuit that if she had known that the influencers ‘ posts were sponsored, she would not have made the purchase of Revolve’s products at the prices she had paid, which were occasionally 10 % to 40 % higher than those of other retailers selling the same items.
The lawsuit seeks damages of$ 50 million. Three celebrities as well as Revolve’s affiliates were named as co-defendants.
According to the petition, FTC-mandated disclosures may be “difficult to miss,” similar to the “paid partnership” brand advised by Meta or the #ad tweet. Revolve’s paid influencers frequently only tagged the trend brand’s Instagram accounts in their articles, according to the problem.
” The issue arises when you don’t disclose,” said Bogdan Enica, one of Negreanu’s counsel. He added that celebrities endorsing a product on social media must disclose any “material link” with the company in accordance with Federal Trade Commission guidelines.
Revolve warned about the potential for legal action if its dozens of social internet influencer-partners didn’t adhere to FTC rules in its 2023 monthly statement.
Revolve should be modified to clearly and conspicuously publish the materials links between Revolve and celebrities in its item gifting program, according to the National Advertising Division of BBB National Programs, a nonprofit that oversees business self-regulation programs.
Revolve is accused of violating consumer protection legislation in more than 20 state, including the Florida Deceptive Trade Practices Act, the Buyers Legal Remedy Act, and the Immoral Business Practices Act.
The Revolve Group company has grown exponentially. Net sales for the business increased by 6 % to$ 1.1 billion in 2024. During the same time, profits increased by a 7 % to$ 48.8 million.
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