Los Angeles County District Attorney George Gascón announced Monday that rapper Kanye West’s fashion line, Yeezy, settled a civil lawsuit filed by prosecutors on behalf of customers allegedly victimized by its “unlawful business practices.”
The popular streetwear brand was investigated by a joint task force consisting of attorneys with the L.A., Alameda, Sonoma, and Napa county D.A. offices.
California and federal laws dictate that online retail orders be shipped to customers within 30 days of purchase. If a retailer fails to do so, it must send the customer “equivalent or superior replacement goods,” or send a notice explaining the delay with an accompanying refund offer.
Prosecutors alleged Yeezy’s long shipping times violated consumer-protection laws, and alleged the company made “untrue or misleading statements” concerning its ability to fulfill orders within a reasonable timeframe—including instances where buyers paid additional premiums for expedited delivery.
Competition among buyers for Yeezy items is often fierce. A recent collection of sneakers reportedly sold out within 60 seconds of being available for online purchase. Demand is driven in significant part by the resale value of Yeezy goods—an average second-hand markup of more than 170%.
Last week, the company agreed to settle claims against it by paying a total of $950,00 in civil penalties, restitution, and legal costs.
“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” Gascón said. “ We will enforce state and federal laws governing online shopping in Los Angeles County.”
Yeezy cooperated with investigators, according to a statement by Gascón’s office, but did not admit any wrongdoing.
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