Federal Judge Orders Revolve Influencer Ad Case to Arbitration

What's Happening?

A California federal judge has ordered the proposed class action lawsuit against Revolve, brought by customer Ligia Negreanu, into private arbitration. The lawsuit alleges that Revolve and its affiliates paid influencers with cash and free merchandise to promote products without disclosing their ties to the brand, misleading consumers and inflating prices. Revolve's Terms of Service, which mandate individual arbitration and bar jury trials and class actions, were cited in the decision. The court found that Negreanu's claims fell within the arbitration clause she agreed to when making purchases on Revolve's website.

Why It's Important?

This decision is significant as it reinforces the enforceability of online arbitration clauses in e-commerce transactions, even in cases involving undisclosed influencer marketing. For Revolve, the ruling represents a victory in channeling disputes into private arbitration, which is less visible and costly than public court proceedings. For consumers, it highlights the limitations of pursuing class actions against retailers when agreeing to their Terms of Service. The case also underscores the challenges consumers face in litigating against influencers, including procedural hurdles like enforceable arbitration clauses and strict service requirements.

What's Next?

While Revolve successfully moved the case to arbitration, the claims against individual influencers remain unresolved. Negreanu's attempts to serve influencers via social media were denied by the court, emphasizing the need for more reliable methods like email. The case will proceed in arbitration, with Negreanu pursuing her dispute individually rather than as part of a class action.