Rihanna and her intimates company Savage X Fenty have settled on a lawsuit that was filed this past August. Around that time, customers who had purchased lingerie or undergarments from Savage X Fenty claimed the company used deceptive marketing tactics and automatically enrolled them in a VIP subscription tier, against their knowledge. A suit was later filed in Santa Clara County Superior Court by Santa Clara, Santa Cruz, Los Angeles and San Diego counties, and the city of Santa Monica.
Earlier this week, news broke that Rihanna and Savage X Fenty have settled the lawsuit for $1.2 million.
“Consumers have a right to know up front what they are paying for and how often,” Deputy District Attorney Jennifer Deng said in a release issued by Santa Clara County upon the news of the settlement. “Businesses have a duty to be transparent about their automatic renewal charges.”
According to the terms of the settlement, Savage X Fenty will pay $1 million in civil penalties, $50,000 in investigative costs, and $150,000 in restitution. The restitution will be paid to Savage X Fenty customers who did not opt to “Skip the Month” or purchase an item after their initial membership enrollment, those who canceled their membership and did not receive a refund for the VIP membership charge. Eligible customers will receive a third-party claim administrator.
Neither Rihanna nor Savage X Fenty have commented on the reported suit.