FTC Sends Nearly $1.9 Million in Refunds to Customers Harmed by Hey Dude’s Violations of the Mail Order Rule

The Federal Trade Commission is sending nearly $1.9 million in refunds to consumers harmed by online shoe seller Hey Dude, Inc.’s refund and shipping practices.

In September 2023, the company settled allegations that it repeatedly violated the FTC’s Mail, Internet, and Telephone Order Merchandise Rule (Mail Order Rule) and suppressed negative online reviews in violation of the FTC Act. The FTC’s complaint against Hey Dude charged that the company failed to notify customers about shipping delays, did not provide cancellations or refunds for delayed orders, and used gift cards in place of monetary compensation to refund customers who never received their orders in violation of the Mail Order Rule. The FTC also alleged that Hey Dude violated the FTC Act by only publishing the highest ratings to its website from a third-party online management review interface and suppressed more than 80% of online reviews that did not give four or more stars out of a possible five.

The FTC is sending PayPal payments to 36,757 consumers who experienced unexpected cancellations and shipping delays or received gift cards from the company instead of refunds for out-of-stock items. Consumers should redeem their PayPal payment within 30 days.

Consumers who have questions about their payment should contact the refund administrator, JND Legal Administration, at 877-495-1096 or visit the FTC’s website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $324 million in refunds to consumers across the country.