LOS ANGELES – Los Angeles County District Attorney George Gascón announced today that Yeezy Apparel LLC and Yeezy LLC will pay $950,000 to settle a civil lawsuit alleging the online sneaker and clothing company engaged in unlawful business practices and false advertising by failing to ship items in a timely manner.
“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” District Attorney Gascón said. “We will enforce state and federal laws governing online shopping in Los Angeles County.”
The District Attorney’s Consumer Protection Division led the investigation and prosecution efforts, which included Alameda, Sonoma, and Napa county district attorney’s offices.
The judgment was entered on Nov. 3 and signed by Los Angeles County Superior Court Judge Randolph M. Hammock. The La Palma-headquartered company founded by entertainer Ye, formerly Kanye West, was ordered to pay a total of $950,000:
- $200,000 in civil penalties to each of the four district attorney offices involved
- $50,000 in restitution to the Consumer Protection Prosecution Trust Fund
- $25,000 in investigative costs to each of the four district attorneys’ offices
Under the settlement, Yeezy is prohibited from making untrue or misleading representations regarding a shipping timeframe or refund; adhere to laws relating to the issuance of delay notices; and is required to refund money to consumers who, in the future, purchase products that are not shipped in a timely fashion.
California and federal statutes require that orders placed over the internet be shipped within 30 days, and if not, the company must send the consumer equivalent or superior replacement goods, or give the buyer a written notice explaining the delay and offer a refund upon request.
The company also allegedly made untrue or misleading statements regarding its ability to ship products within a certain timeframe, particularly where customers paid an additional charge for expedited shipping.
The companies cooperated in the investigation and did not admit wrongdoing.