Rihanna’s Savage x Fenty venture is in the hot seat.
On Monday, the lingerie, loungewear and sportswear brand agreed to pay $1.2 million to settle a consumer protection lawsuit for misleading consumers.
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The lawsuit — originally filed in August at three California prosecutor’s offices, in addition to the Santa Monica city attorney’s office — claimed the megastar-co-founded brand failed to notify VIP members of the recurring charges of its subscription program. The brand has also not received the proper consent for the auto-renewal fee. Additionally, the lawsuit alleges that the retailer incorrectly advertised prices and how to use store credit to purchase merchandise.
“Consumers have the right to know in advance what they are paying for and how often,” Assistant District Attorney Jennifer Deng said in court documents issued by the Santa Clara City District Attorney’s Office. . “Companies have a duty to be transparent about their auto-renewal fees.”
Under California law, consumer-facing internet companies must disclose all automatic renewal fees “clearly and prominently,” according to documents from the district attorney’s office. The lawsuit claimed that VIP members were charged after their initial sign-up fee, even if they did not purchase additional products. Buyers who later canceled their memberships did not receive a full refund, according to the lawsuit.
Representatives for Savage x Fenty did not respond to requests for comment on the settlement. But according to court documents, the company cooperated with the investigation and made changes to its website, automatic renewal notices, store credit and advertising methods.
In addition, the company agreed to pay $1 million in civil penalties, $50,000 in investigation costs, and $150,000 in restitution to previous or current California VIP members.
Savage x Fenty has grown rapidly since 2018 – when Rihanna launched the brand online (with the help of TechStyles Fashion Group) as a women’s intimates brand – thanks to a mix of inclusive offerings, funds of investors and the star of Rihanna.
Last month, the company expanded into activewear under the creative direction of designer Adam Selman. There are also loungewear and loungewear for men. Earlier this year, the brand, which has since split from TechStyles, expanded into physical retail.
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