Since its launch in May 2018, the lingerie company Savage X Fenty has quickly gained popularity, reporting nearly $150 million in annual revenues. Savage X Fenty – a joint venture between Rihanna and TechStyle, Inc. – sells lingerie, bras, underwear, and sleepwear online. However, according to the non-profit organization Truth In Advertising, it appears that Savage X Fenty’s revenues may in part arise out of deceptive marketing and unlawful business practices designed to take advantage of unsuspecting consumers.
Specifically, Truth In Advertising alleges that its investigation into the lingerie company revealed numerous unlawful practices:
- “It deceptively promotes discounts and product prices that are only available to consumers who are bound to the company’s membership program without clearly and conspicuously disclosing this fact in its marketing materials;
- By default, the company enrolls consumers into a negative option offer known as the Xtra VIP Membership without clearly and conspicuously disclosing all the material terms and conditions, such as needing to take affirmative action every month to avoid recurring monthly charges;
- Savage X Fenty falsely tells consumers that monthly charges can be used as store credit ‘whenever’ they want when, in reality, the company prohibits consumers from using store credit unless they spend $49.95 or more – a fact not disclosed in any of its marketing materials; and
- It employs dissuasion and diversion tactics so that consumers encounter unnecessary difficulty when trying to cancel their Savage X Fenty Xtra VIP Memberships.”
Marketing and online retail are highly regulated by the Restore Online Shoppers Confidence Act and the Federal Trade Commission, as well as countless state laws. The applicable laws prohibit any misleading, fraudulent, or deceptive marketing tactics.
Attorneys at Finkelstein, Blankinship, Frei-Pearson & Garber, LLP have successfully recovered millions of dollars on behalf of consumers. We are currently investigating this matter, as well as other consumer protection violations. If you or someone you know enrolled in Savage X Fenty’s Membership program as a result of deceptive marketing, please contact us to discuss your legal options.