SAN JOSE – A lingerie company with ties to singer Rihanna has agreed to pay $1.2 million to settle a consumer protection lawsuit brought on by four California counties over VIP memberships and pricing, attorneys announced Monday.
Lavender Lingerie LLC dba Savage X Fenty reached the settlement three months after district attorneys in Santa Clara, Santa Cruz, Los Angeles, and San Diego counties, along with the Santa Monica City Attorney's Office filed suit.
The lawsuit alleged the company did not "clearly" disclose automatic charges to customers who purchased VIP memberships and did not give proper consent or proper notices for automatic renewal charges.
"Consumers have a right to know up front what they are paying for and how often," Santa Clara County Deputy District Attorney Jennifer Deng said in a statement Monday. "Businesses have a duty to be transparent about their automatic renewal charges."
Lavender Lingerie LLC was also accused of falsely advertising the ability to use store credit and misled over product pricing.
A joint venture between musician Rihanna and TechStyle Fashion Group, Savage X Fenty's product line includes bras, underwear, sleepwear and loungewear. Prosecutors said the company cooperated with the investigation and made changes to its website, automatic renewal notices, along with its store credit and advertising policies.
As part of the $1.2 million settlement, prosecutors said the company will pay $1 million in civil penalties, along with $50,000 in investigative costs. Restitution totaling $150,000 will also be paid to California VIP customers who did not "Skip the Month" or purchased an item after initially enrolling in the membership or who have canceled their membership and did not receive a refund.
Prosecutors said a third-party claim administrator would contact customers eligible for restitution.