Revolve faces $50M lawsuit over undisclosed influencer marketing

Fashion retailer Revolve is facing a $50 million class-action lawsuit alleging the company misled consumers by disguising paid influencer endorsements as organic content.

Filed in California Central District Court, the lawsuit accuses the company of operating a deceptive advertising scheme in violation of federal trade law and multiple state consumer protection statutes. The plaintiffs argue the campaign misled at least a million consumers.

The lawsuit, led by California resident Ligia Negreanu, states Revolve used payments and free merchandise to encourage influencers to promote its products while failing to ensure proper disclosure of those material relationships. “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 complaint states.

Negreanu claims she would not have purchased products from Revolve — often priced 10% to 40% higher than competitors — if she had known influencers endorsing them were being compensated.

The plaintiffs are seeking $50 million in damages, alleging violations of the Florida Deceptive Trade Practices Act, the Consumers Legal Remedy Act, the Unlawful Business Practices Act, and consumer protection laws in more than 20 states.

The complaint argues influencers involved in Revolve’s marketing strategy failed to meet Federal Trade Commission disclosure standards.

FTC guidelines require influencers to disclose any “material connection” to a brand in a manner that is “difficult to miss,” such as using the “paid partnership” label or hashtags. The guidelines apply to all forms of compensation – including payments, free products, or travel perks. Instead, influencers often only tagged the brand’s Instagram handle, which does not meet the disclosure threshold, according to the lawsuit.

“The problem comes when you don’t disclose,” Bogdan Enica, one of Negreanu’s attorneys, said. Enica emphasized FTC guidelines are clear in requiring transparent disclosures of paid relationships to protect consumers from being misled.

The lawsuit also references regulatory pressure the brand has previously acknowledged. In its 2023 annual report, Revolve warned of potential litigation risks if its influencers failed to comply with FTC standards.

Earlier this year, the National Advertising Division of the Better Business Bureau recommended Revolve “modify influencer posts to clearly and conspicuously disclose the material connections between Revolve and influencers in its product gifting program”.

Founded in 2003, Revolve has built its brand through a model centered on influencer partnerships, many of whom have large followings on platforms like Instagram and TikTok. By positioning influencers as tastemakers, Revolve has managed to maintain a distinct cultural presence among millennial and Gen Z consumers.

Its high-visibility campaigns - such as the #RevolveAroundTheWorld series - send influencers to luxury destinations to create promotional content featuring Revolve’s fashion lines. These trips – including visits to Mykonos, Paris, and the Hamptons – have helped establish the brand as a leader in aspirational digital marketing.

The company also runs a formal ambassador program where influencers are incentivized through affiliate commissions and early product access. Participants are required to post regularly about the brand and follow Revolve’s promotional guidelines. However, the lawsuit questions how rigorously these policies are enforced, especially given the volume of influencer-generated content associated with the brand.