Alameda County District Attorney Nancy O’Malley said her office and three other California counties’ district attorneys have settled a consumer protection lawsuit against two companies owned by the artist formerly known as Kanye West.
According to a complaint filed Oct. 22 in Los Angeles County Superior Court, the Orange County-based Yeezy Apparel LLC and Yeezy LLC , which sell clothing and sneakers under the Yeezy brand in partnership with Adidas, engaged in unlawful business practices by failing to ship items to customers in a timely fashion. Adidas was not named in the original suit or in the settlement.
Los Angeles County Superior Court Judge Randolph M. Hammock signed the settlement judgment Nov. 3 against the companies owned by Ye, the entertainer who successfully petitioned a judge to change his legal name from Kanye West last month. The companies will pay $200,000 in civil penalties and $25,000 in investigative costs to the Alameda, Los Angeles, Napa and Sonoma district attorneys’ offices, as well as $50,000 restitution to the state’s Consumer Protection Prosecution Trust Fund.
The settlement also prohibits Yeezy from making untrue or misleading statements around shipping timeframes or refunds, and must follow delay notice laws and refund money to buyers whose products are not shipped in a timely fashion. Both companies cooperated in the investigation, and did not admit to any wrongdoing.
In statements, O’Malley joined other district attorneys in decrying the sales’ effects on consumers, noting that if online orders are not shipped within 30 days, companies must send consumers notices advising of the delay and offering refund opportunities.
“No one wants to wait a long time for their online order to arrive. The law requires sellers to deliver consumer products within a reasonable period of time, which is, by default, no more than 30 days, or take additional steps to keep the customer informed and make him or her whole,” O’Malley said. “When companies fail to follow the law, my office will take steps to ensure they do.”
“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” Los Angeles District Attorney George Gascón said in part.
“Online shoppers should not have to pay first, then wait an indefinite amount of time for their purchase to be shipped,” Napa County Deputy District Attorney Patrick Collins said. “If a company cannot ship products when it promises to do so, they need to clearly inform the customer of the delay and, in some cases, offer a refund. We will work to ensure that online retailers comply with California laws.”
Contact George Kelly at 408-859-5180.
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