Rihanna’s Savage X Fenty brand has been ordered to pay $1.2 million for allegedly defrauding customers. According to the East Bay Times, the counties of Santa Clara, Santa Cruz, Los Angeles and San Diego brought the accusations against the fashion brand, saying customers were automatically enrolled in a VIP program after making online purchases.
Savage X Fenty allegedly took monthly recurring charges from customers until their membership was canceled.
“Consumers have a right to know up front what they are paying for and how often,” Santa Clara County deputy District Attorney Jennifer Deng said on Monday while announcing the settlement. “Businesses have a duty to be transparent about their automatic renewal charges.”
According to the complaint, the company’s actions “were likely to deceive members of the public and were performed with that intent.”
Adding to the accusations, the company allegedly deceived customers by stating that store credit earned from VIP membership could be used at any time. The store credit, according to the complaint, could only be used for purchases costing more than the value of the credit.
Investigators said the company has now agreed to become more transparent, modifying its website and presenting automatic renewal alerts to inform customers about upcoming charges.
As part of the agreement in the lawsuit, the company will pay a $1 million fine, $50,000 to pay back investigative costs and $150,000 in restitution to previous or current VIP members in California.
A new California law that went into effect in July states that companies must make automatic subscriptions easily cancellable and clearly explain the length of free trial periods. The law also requires online companies to disclose all automatic-renewal fees clearly.
Rihanna launched her lingerie company in 2018, offering lingerie of various sizes to customers.
