Summary of Action
A TINA.org investigation into the web-based lingerie company Savage X Fenty, which is a joint venture between TechStyle, Inc. (f/k/a Just Fabulous, Inc.) and music icon Robyn Rihanna Fenty (aka Rihanna), revealed that the company is engaged in deceptive marketing and illegal business practices. Specifically, TINA.org’s investigation revealed, among other things, that Savage X Fenty:
- deceptively promotes product prices that are only available to consumers who are bound to the company’s membership program without clearly and conspicuously disclosing this fact in its marketing materials;
- by default, enrolls consumers into a negative option offer known as the Xtra VIP Membership without clearly and conspicuously disclosing all the material terms and conditions, such as needing to take affirmative action every month to avoid recurring monthly charges;
- falsely tells consumers that monthly charges can be used as store credit “whenever” they want when, in reality, the company prohibits consumers from using store credit unless they spend $49.95 or more – a fact not disclosed in any of its marketing materials; and
- employs dissuasion and diversion tactics so that consumers encounter unnecessary difficulty when trying to cancel their Savage X Fenty Xtra VIP Memberships.
In addition, the company uses social media influencer advertisements that fail to adequately disclose the influencers’ material connections to the company.
TINA.org determined that such actions not only violate federal law, including the Restore Online Shoppers’ Confidence Act (ROSCA), but also a 2014 California Stipulated Judgment against JustFabulous, Inc., now TechStyle, Inc.
As a result, TINA.org filed complaint letters with the Federal Trade Commission, as well as California District Attorneys, urging them to take enforcement action.