REVOLVE FACES $50M LAWSUIT OVER HIDDEN INFLUENCER PARTNERSHIPS

LATEST DEVELOPMENT

Fashion retailer Revolve faces a $50 million class-action lawsuit alleging the company orchestrated a deceptive marketing scheme where influencers failed to disclose paid partnerships, violating federal trade law.

INDUSTRY TALK

BY THE NUMBERS

Case details include:

• $50M in damages sought by plaintiffs

• 10-40% price premium allegedly charged compared to competitors

• $1.1B in net sales reported by Revolve in 2024 (up 6%)

• $48.8M in profits (up 73% from previous year)

• 38% stock price decline year-to-date despite recent 4% rise

LEGAL ALLEGATIONS

Key claims include:

• Violation of Florida Deceptive Trade Practices Act

• Breach of Consumers Legal Remedy Act

• Infringement of Unlawful Business Practices Act

• Non-compliance with consumer protection laws in 20+ states

• Failure to implement "difficult to miss" disclosures like #ad or "paid partnership" tags

REGULATORY CONTEXT

Background factors include:

• FTC requirement for "material connection" disclosure

• BBB National Programs' recommendation to modify influencer disclosures

• Revolve's own 2023 annual report acknowledging litigation risk

• Thousands of influencer partners potentially affected

• Lead plaintiff citing she wouldn't have paid premium prices with proper disclosure

THE BOTTOM LINE

As influencer marketing faces increasing regulatory scrutiny, Revolve's case highlights the potential legal and financial consequences fashion brands may face when failing to ensure transparent disclosure of paid partnerships in social media marketing campaigns.