Kanye West’s company — Yeezy — was just ordered to pay a million dollars, following allegations it engaged in unlawful business practices and false advertising by not shipping their products in a “timely manner.”
According to a press release sent out by the Los Angeles District Attorney, Yeezy is paying $950,000 in a consumer protection lawsuit, which was preceded by an investigation in four different counties in California. In the statement, it notes “YE” formerly known as “Kanye West” founded the La Palma-based company, and it cooperated in the investigation which led to the settlement.
In the settlement, Yeezy is “prohibited from making untrue or misleading representations regarding a shipping timeframe or refund; adhere to laws relating to the issuance of delay notices; and is required to refund money to consumers who, in the future, purchase products that are not shipped in a timely fashion.”
Kanye’s ‘Yeezy’ Brand Accused Of Not Shipping Products On Time
Prosecutors claim the popular shoe and fashion company allegedly made “untrue or misleading statements regarding its ability to ship products within a certain timeframe, particularly where customers paid an additional charge for expedited shipping. At the time, the L.A. District Attorney’s Consumer Protection Division led the investigation and prosecution efforts that included Alameda, Sonoma, and Napa County’s District Attorney’s Offices.
The settlement breakdown is as follows: $200,000 in civil penalties to each of the four district attorney offices involved, $50,000 in restitution to the Consumer Protection Trust Fund, and $25,000 in investigative costs to each of the four district attorney’s offices.
“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” L.A. District Attorney Gascón said.
He continued, “We will enforce state and federal laws governing online shopping in Los Angeles County.”
Kanye West’s Company Reportedly Cooperated With The Investigation
The press release notes that California — and Federal law — requires that orders placed over the internet be shipped within 30 days, and if not, the company must send the consumer equivalent or superior replacement goods or give the buyer a written notice explaining the delay and offer a refund upon request.
According to prosecutors, the judgment was entered on November 3, 2021, and signed by a Los Angeles County Judge. It should be noted, the settlement says the company cooperated in the investigation and did not admit to any wrongdoing.
‘Yeezy’ Founder Is Worth Almost 2 Billion Dollars
Kanye West has made a fortune with his fashion and shoe brand. Earlier this year, Forbes put his net worth around $1.8 billion — which primarily comes from his ‘Yeezy’ deal with Adidas and the worth of the brand and company. As you know, Kanye began dabbling in the footwear industry back in the 2000s after collaborating with companies like Louis Vuitton and Nike. Currently, Kanye has a deal with Gap for his clothing line, to design adult and kid’s clothing for the apparel giant.
So, why the issues? Well, Yeezy sneakers have been a hugely popular item online for many years. Sneaker aficionados will often purchase the incoming models and sell them on a secondary market for a huge profit. In some cases, the shoes sell for thousands of dollars. Of course, this can make it difficult to keep up with demand.