SANTA CLARA, Calif. – Rihanna’s billion dollar lingerie company will pay out $1.2 million to settle claims it defrauded customers that were automatically enrolled in a VIP program without their consent.
The lawsuit claimed Savage X Fenty customers would be enrolled in the program through payment of a recurring monthly fee.
According to The East Bay Times, Lavender Lingerie LLC, doing business as Savage X Fenty, was accused by the counties of Santa Clara, Santa Cruz, Los Angeles and San Diego, plus the city of Santa Monica, of violating California law and misleading customers by automatically enlisting them in the program.
The lawsuit said customers were also misled into believing that shop credit earned through VIP membership could be used at will, but in reality, customers could only apply it toward purchases that exceeded the credit’s value.
“Consumers have a right to know up front what they are paying for and how often,” said Jennifer Deng, Santa Clara County deputy district attorney, according to The Times. “Businesses have a duty to be transparent about their automatic renewal charges.”
In addition to the $1 million fine, Savage X Fenty will pay $150,000 in restitution to former or present VIP members in California and $50,000 in state investigative fees as part of the settlement.
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