MADISON, CONN., Dec. 01, 2022 (GLOBE NEWSWIRE) -- Acting on a complaint filed by ad watchdog, truthinadvertising.org (TINA.org), California regulators have reached a settlement with lingerie company Savage X Fenty, originally a joint venture between music icon Rihanna and e-commerce company TechStyle, Inc., for the deceptive marketing of its "Xtra VIP" subscription membership program.
The action by a group of California regulators, which quietly commenced in August when it filed its complaint in state court against the celebrity’s brand, comes more than two years after TINA.org alerted them (and the FTC) that Savage X Fenty was violating state and federal laws with its deceptive negative option offer. TINA.org’s investigation found that Savage X Fenty was misleadingly promoting discounts and product prices that were only available to Xtra VIP members; enrolled consumers into a negative option offer without disclosing all the material terms and conditions of the offer; falsely told consumers that store credits could be used “whenever they want”; and employed dissuasion and diversion tactics when consumers tried to cancel their Savage X Fenty membership.
"Our call for action against Savage X Fenty and subsequent regulatory enforcement by California should serve as a warning for companies attempting to use deceptive marketing to enroll consumers in negative option offers," said TINA.org Executive Director Bonnie Patten.
Pursuant to the Stipulated Judgment entered in the Superior Court of California in Santa Clara County, Savage X Fenty must pay $1 million in civil penalties, provide $150,000 in restitution for California consumers, and permanently stop engaging in false, deceptive, and misleading marketing tactics.
Deceptive marketing in the subscription economy is an area of focus for the ad watchdog. Other investigations include meal kit retailer HelloFresh, kids clothing and shoe marketer FabKids and lingerie e-tailer Adore Me.
To read more about TINA.org’s investigation of Savage X Fenty, see: https://truthinadvertising.org/brands/savage-x-fenty/
About TINA.org (truthinadvertising.org)
TINA.org is a non-profit organization that uses investigative journalism, education, and advocacy to empower consumers to protect themselves against false advertising and deceptive marketing.
