When Rihanna started collecting lingerie in 2018, she teamed up with Kate Hudson’s startup behind Athlezure Line Flybatics.
However, face-to-face accusations about fabletics and start-ups, textile fashion groups, fraudulent billing strategies, and now Rihanna’s line, Savage X Fonti, which has been praised for using different body types and ethnic models in its marketing, are facing similar criticisms.
Tuesday, a non-profit organization, Truth Advertising, Said The Savage X Fonti “tricked consumers into unwanted monthly charges” by the subscription plan that was difficult to get out of. It said it alerted the Federal Trade Commission to the business practices of the line, which it believes violates the agency’s rules and the online shopper restitution law.
When consumers buy items like bras and lingerie from the Savage X Finty website, the brand lists consumers as “true in advertising” 50 monthly subscriptions, without disclosing all of the ingredients and conditions of the offer, when prices are added to an item in a shopper’s online cart. Attends – say, $ 19.50 for a pair of leggings – membership is required For leggings, the price can be more than twice as high as the fact that advertising has been added that the brand also uses “discontinuation and deviation strategies” when trying to cancel a subscription.
The group also said that ads for the line from social media Influencer Can be deceiving.
Savage X Fenty denied the claim. “These allegations are false and based on a misconception of our business,” the line’s representative, Emma Tully, said in an email.
“At Savage X Finty, we strongly believe in transparency, which is why we publish multiple terms of membership throughout the entire shopping experience, both in advertising and through our ambassador engagement policies,” he said.
The alleged allegation of trust in advertising involves so-called prevalence Negative-option billing Online, which refers to the practice of companies charging consumers for services if they are not specifically denied.
“A lot of consumers like the fact that this brand is championing women’s empowerment and inclusion, and so they are very interested in purchasing products from this website,” Bonnie Patten, executive director of Truth in Advertising, said in an interview. “What they may not realize is that the prices they see on social media are unknowingly being used as a subscription model in how the pricing and checkout process works for joining a membership.”
When customers add items from a site to a shopping cart, a “Save x Monthly Subscription” is automatically added. In order to check out, customers have to actively remove it, which will cause the item prices to rise faster.
According to data provider PitchBook, Textile has raised more than $ 500 million in funding and is worth about $ 1 billion. Based in the Los Angeles area and formerly known as JustFab and its founder is The This type of subscription is special For the year.
At 27, Adam Goldenberg, the company’s co-founder, was named in a lawsuit against Censor, a leadership company that sold bogus miracle weight loss powders. FTC Sensa has been fined about $ 50 million, making it one of the biggest paid ads for disguise.
TechStyle paid $ 1.5 million the same year To settle customer protection lawsuits That alleged that its brands, including Folbiotics, failed to explain “clearly and clearly” that its discount required an automatic monthly subscription fee.
Still, textile is seen as one Success in Silicon Valley And is ultimately expected to handle the initial public offering.
Customers may be aware of the Savage X Fontey business model, but Mrs Patten said that Travel in Advertising has tracked hundreds of complaints against the company’s billing and cancellation practices.
Erin Griffith contributed reporting.