When Rihanna launched her lingerie collection in 2018, he embarked on his new adventure with the emerging company responsible for the line of athletic clothing by Kate Hudson, Fabletics.
Unfortunately, we have filed claims for deceptive tactics of billing against both from Fabletics as the emerging company TechStyle Fashion Group, and now the line of Rihanna, Savage x Fenty, faces similar criticisms.
Many have praised the line for use in your advertising models with different body types and of various breeds. Unfortunately, the January 11, the non-profit organization, Truth in Advertising stated that Savage x Fenty “”flips” to the consumer to agree to monthly charges that in reality do not want”, through a membership plan hard to refuse. The organization noted that it had alerted the Federal Trade Commission on the commercial practices of the line, which in its opinion contravene the rules of that agency and the Law on the Restoration of the Confidence of the Online Shoppers (SCREW, for its acronym in English).
When consumers purchase items such as bras and underwear web site Savage x Fenty, according to Truth in Advertising, the registered trademark to consumers in subscriptions, with monthly payments of fifty dollars “without disclosing all the substantive provisions of the offer”. The prices shown when an item is added to the shopping cart’s digital customer, for example 19,50 dollars for a pair of leggings, require a membership. For those who are not members, the price of the same leggings increases to more than double. Truth in Advertising also said that the brand uses “tactics of deterrence and distraction” when consumers attempt to cancel their memberships.
Likewise, the group noted that the ads that some influential make of the line in the social networks can be misleading.
Savage x Fenty denied the accusations. “Are the accusations false, based on misinterpretation of our business.”he said in an email to Emma Tully, representative of the line.
“In Savage x Fenty we have a firm commitment to transparencytherefore, we include several notices on the terms and conditions applicable to our membership during the shopping experience, in our ads and through policies of collaboration with ambassadors,” he explained.
The complaint of Truth in Advertising refers to the widespread practice called “billing negative option” online, which consists of companies, which include the collection of a service to consumers, unless you reject specifically.
“Many consumers love this brand promotes the empowerment of women and inclusion, so that they do not have any problem in buying products in this web site,” he said in an interview Bonnie Patten, executive director of Truth in Advertising. “The problem is not clear that the prices you see in social networking rely on the acquisition of a membership and, due to the way in which it operates the payment process, end up enrolled in a subscription model without knowing it”.
When customers add items from the site to your shopping cart, it immediately adds a charge for “monthly Membership Savage”. At the time of pay, clients must explicitly delete the concept, which usually increase very much the price of the items.
TechStyle has collected funds in excess of five hundred million dollars and is valued at around a billion dollars, according to data provider Pitchbook. The emerging company, which used to be called JustFab, and its founders have specialized in this type of subscriptions for years.
In 2014, the name of Adam Goldenberg, co-founder of the company, was included in a suit promoted against Sensa, a company that was leading the object of which was the sale of a powder miraculous to lose weight, which turned out false. The Federal Trade Commission imposed a Sensa a fine of nearly fifty million dollars, one of the largest implemented by the unit in cases of misleading advertising.
TechStyle paid for 1,88 billion dollars in the same year to resolve a judgment in the matter of consumer protection in the accusing to their brands, including Fabletics, not to explain in a way that “clearly and unequivocally” that their discounts require the automatic payment of monthly subscription fees.
In any way, in Silicon Valley has been considered to TechStyle a success and is expected to organize an initial public offering.
Although it is possible that consumers are aware of the business model of the Savage x Fenty, Patten said that Truth in Advertising has detected hundreds of complaints filed in relation to the billing of the company and its practices cancellation.
c. 2020 The New York Times Company