Pop superstar Rihanna’s Savage X Fenty lingerie company will pay $1.2 million to settle a lawsuit brought by Santa Clara County and four other California local governments alleging the company defrauded customers.
Governments have accused Savage X Fenty of tricking consumers into automatically enrolling them in a “VIP” program with automatic recurring credit card charges. According to the lawsuit filed in August in Santa Clara County Superior Court by Santa Clara, Santa Cruz, Los Angeles and San Diego counties and the city of Santa Monica, the scheme allegedly violated California’s automatic renewal law.
When people purchased products on the Savage X Fenty website, they were automatically — and fraudulently — enrolled in a recurring paid VIP membership, the lawsuit claims, resulting in credit card charges that would be repeated until that the customer cancels the subscription.
“Consumers have the right to know in advance what they are paying and how often,” Santa Clara County Assistant District Attorney Jennifer Deng said Monday in announcing the settlement. “Companies have a duty to be transparent about their auto-renewal fees.”
Savage X Fenty’s actions “were likely to mislead members of the public and were performed with that intent,” the lawsuit said. The company did not visibly disclose the terms of its auto-renewal program, obtain “express and affirmative informed consent” from buyers, and provide a simple online mechanism to stop charges. according to the lawsuit.
Savage X Fenty also told customers that store credit accumulated through VIP membership can be used at any time, while it can only be used for purchases that cost more than the value of the credit, according to the pursuit.
As part of the settlement with the governments, Savage X Fenty will pay a $1 million fine, plus $50,000 to reimburse investigation costs and $150,000 in restitution to previous or current VIP members in California. Eligible Customers must receive notification from a Third Party Claims Administrator.
The company did not immediately respond to a request for comment. A quote from Rihanna on her lingerie company’s website includes the following comment: “Savage X means making your own rules.”
Savage X Fenty has cooperated with the government investigation and changed its website, auto-renewal notices, and in-store credit and advertising practices, the Santa Clara County District Attorney’s Office said in a press release. .
Under state law, online businesses that market to consumers must clearly and prominently disclose all auto-renewal fees. A new state law requiring automatic subscriptions to be easily cancellable and e-commerce companies to clearly communicate when free trial periods end went into effect in July.
Barbadian singer Rihanna launched her lingerie company in 2018, with a wide range of sizes that promote a “body positive message”, according to Vogue magazine. “You can be cute and playful one week and black widow the next,” Rihanna told Vogue. “You can take risks with lingerie.”
Pop superstar Rihanna’s Savage X Fenty lingerie company will pay $1.2 million to settle a lawsuit brought by Santa Clara County and four other California local governments alleging the company defrauded customers.
Governments have accused Savage X Fenty of tricking consumers into automatically enrolling them in a “VIP” program with automatic recurring credit card charges. According to the lawsuit filed in August in Santa Clara County Superior Court by Santa Clara, Santa Cruz, Los Angeles and San Diego counties and the city of Santa Monica, the scheme allegedly violated California’s automatic renewal law.
When people purchased products on the Savage X Fenty website, they were automatically — and fraudulently — enrolled in a recurring paid VIP membership, the lawsuit claims, resulting in credit card charges that would be repeated until that the customer cancels the subscription.
“Consumers have the right to know in advance what they are paying and how often,” Santa Clara County Assistant District Attorney Jennifer Deng said Monday in announcing the settlement. “Companies have a duty to be transparent about their auto-renewal fees.”
Savage X Fenty’s actions “were likely to mislead members of the public and were performed with that intent,” the lawsuit said. The company did not visibly disclose the terms of its auto-renewal program, obtain “express and affirmative informed consent” from buyers, and provide a simple online mechanism to stop charges. according to the lawsuit.
Savage X Fenty also told customers that store credit accumulated through VIP membership can be used at any time, while it can only be used for purchases that cost more than the value of the credit, according to the pursuit.
As part of the settlement with the governments, Savage X Fenty will pay a $1 million fine, plus $50,000 to reimburse investigation costs and $150,000 in restitution to previous or current VIP members in California. Eligible Customers must receive notification from a Third Party Claims Administrator.
The company did not immediately respond to a request for comment. A quote from Rihanna on her lingerie company’s website includes the following comment: “Savage X means making your own rules.”
Savage X Fenty has cooperated with the government investigation and changed its website, auto-renewal notices, and in-store credit and advertising practices, the Santa Clara County District Attorney’s Office said in a press release. .
Under state law, online businesses that market to consumers must clearly and prominently disclose all auto-renewal fees. A new state law requiring automatic subscriptions to be easily cancellable and e-commerce companies to clearly communicate when free trial periods end went into effect in July.
Barbadian singer Rihanna launched her lingerie company in 2018, with a wide range of sizes that promote a “body positive message”, according to Vogue magazine. “You can be cute and playful one week and black widow the next,” Rihanna told Vogue. “You can take risks with lingerie.”