By Keyanna Harper
- Savage X Fenty will pay $1.2M to settle a consumer protection lawsuit for allegedly misleading consumers about its renewal practices and pricing
- Rihanna reportedly owns a 30% stake in the Savage x Fenty brand
The true savage-try of Rihanna’s successful lingerie line is in question when it comes to marketing its membership. Savage X Fenty has been sued for deceptive marketing practices with customers who have complained they were charged $49.95, without realizing they had signed up for a monthly membership. The company was hit with a $1.2 million lawsuit all while there’s a potential $3 billion IPO looming.
Why This Matters: Prosecutors allege the company did not provide proper notice of automatic renewal charges and misled customers about store credit. “Several complaints” were made about being charged this amount without their knowledge, according to CNBC. The Santa Clara County District Attorney’s Office alleges the company didn’t give proper notice for its automatic renewal charges, which resulted in customers being overcharged. Additionally, prosecutors claimed that Savage X Fenty falsely advertised store credit and misled customers about how the credit could be redeemed.
This isn’t the first time a celebrity-owned clothing company has been targeted for such behavior. Last year, Ye’s high-end clothing companies Yeezy and Yeezy Apparel and settled a $950,000 lawsuit for slow product shipping.
Major companies like Savage X Fenty engaging in deceptive marketing practices hurt customers who feel tricked into spending more money than they intended. It can also damage a company’s reputation and future business prospects. Consumers often rely on brands to be transparent and honest about their products.
What’s Next: Rihanna reportedly owns a 30% stake in the brand. Back in February, Savage X Fenty raised a $115 million Series B funding round, at a $1 billion valuation. Private equity firm L Catterton, in which LVMH has a stake in, helped the brand secure this bag for its upcoming retail expansion, and to funnel it into a line of athletic wear. The company plans to open 10 physical stores by the end of 2022.
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