Los Angeles County District Attorney George Gascón announced Monday that rapper Kanye West's fashion line, Yeezy, settled a civil lawsuit filed by prosecutors throughout the state on behalf of customers allegedly victimized by its "unlawful business practices."
The popular streetwear brand was investigated by a joint task force consisting of prosecutors from LA, Alameda, Sonoma and Napa counties.
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.
"No one wants to wait a long time for their online order to arrive," Alameda County District Attorney Nancy O'Malley said in a release on Monday. "The law requires sellers to deliver consumer products within a reasonable period of time, which is, by default, no more than 30 days, or take additional steps to keep the customer informed and make him or her whole. When companies fail to follow the law, my office will take steps to ensure they do."
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 secondhand 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 shoppers should not have to pay first, then wait an indefinite amount of time for their purchase to be shipped," Napa County Deputy District Attorney Patrick Collins said Monday in a release. "If a company cannot ship products when it promises to do so, they need to clearly inform the customer of the delay and, in some cases, offer a refund. We will work to ensure that online retailers comply with California laws."
Yeezy cooperated with investigators, according to a statement from Gascón's office, but did not admit any wrongdoing.
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