By Lookout Staff
November 30, 2022 -- The Santa Monica City Attorney's Office helped win a $1.2 million stipulated judgment in a case against Savage X Fenty, a lingerie brand founded by popular Barbadian singer Rihanna.
Santa Monica was one of four California cities whose attorney's offices, along with the Los Angeles County District Attorney’s office, prosecuted the case.
Filed on August 9, the lawsuit alleges the company did not clearly disclose automatic charges resulting from VIP memberships on its website.
California law requires businesses that market to consumers online to clearly and conspicuously disclose all automatic renewal charges, whether it is part of a subscription, membership or other recurring fee, the City Attorney's office said.
“Consumer protection is one of our office’s highest priorities,” City Attorney Doug Sloan said. “In protecting consumers from unlawful automatic renewal charges, this case epitomizes that priority.”
Prosecutors also alleged that the website for Lavender Lingerie, LLC. -- doing business as Savage X Fenty -- "did not get the proper consent or give proper notices for the automatic renewal charges."
In addition, the lawsuit alleged the website "falsely advertised the ability to use store credit and misled the public over the prices of its products, which include bras, underwear, sleepwear, and loungewear," according to the City Attorney's Office.
Under the stipulated judgment, Savage X Fenty will pay $1 million in civil penalties, $50,000 in investigative costs and $150,000 in restitution, the City Attorneys office said.
"The restitution will be paid to previous or present California VIP members who did not 'Skip the Month' or purchase an item after their initial membership enrollment, canceled their membership and did not receive a refund for the VIP membership charges," prosecutors said.
Notices will be sent to eligible customers by a third-party claim administrator.
"Savage X Fenty cooperated with the investigation and has made changes to its website, automatic renewal notices, and its store credit and advertising practices," the City attorneys office said.
In addition to Santa Monica and the LA County District Attorney, the lawsuit was brought by the Santa Clara, Santa Cruz and San Diego City Attorney's offices, all members of the California Auto Renewal Task Force (“CART”).
The Santa Clara District Attorney’s Office led the prosecutors in the case.