Music star Rihanna's lingerie company Savage X Fenty is under attack for allegedly doing misleading marketing.
Truth in Advertising, a nonprofit surveillance group, said in a complaint to the Federal Trade Commission and the District Attorney of Santa Cruz, Calif., That the online company is promoting discounts that start after paying $ 50 a month for a VIP subscription are available.
"It is deceptively promoting price reductions and product prices that are only available to consumers who are bound by the company's membership program without clearly and conspicuously disclosing this fact in the marketing materials," the complaint claims.
Rihanna, a pop and style icon with the full name Robyn Rihanna Fenty, launched Savage X Fenty in May 2018.
A visit to the company's online shop shows that prices that are only available to VIP members are automatically displayed. When a consumer adds an item to their shopping cart, Savage X Fenty automatically adds a VIP membership without specifying the $ 49.95 monthly fee or including these costs in the total price, according to Truth in Advertising.
Only the small print at checkout informs the buyer of the $ 49.95 monthly fee. In order to access regular prices and avoid the membership fee, buyers need to know that they need to delete it from their shopping cart.
"By default, the company registers consumers for a negative option offer known as an Xtra VIP membership, without disclosing all of the essential terms and conditions clearly and conspicuously, e.g.
Neither Savage X Fenty nor TechStyle responded immediately to CBS MoneyWatch's comment requests.
The truth in advertising also states that Savage X Fenty incorrectly states that monthly fees can be used as credit at any time if buyers are actually required to spend at least $ 49.95 to redeem them. This condition is not revealed in marketing materials, the group said. In addition, the company uses social media influencers to advertise its product without disclosing company loyalty in accordance with the complaint.
This is not the first time that Savage X Fenty's parent company, TechStyle (formerly JustFab), is in hot water due to allegedly misleading marketing practices. In 2014, a misleading $ 1.8 million advertising lawsuit was settled. The ruling prohibited the company from making so-called "negative option" offers.
Rihanna – who is he– in 2019 for allegedly violating their brand when he founded a company called Fenty Entertainment.