Less than three weeks after the state of California filed a consumer protection lawsuit against Yeezy founder, Kanye West, the rapper-turned-fashion designer has agreed to fork over nearly $1 million to settle the mess.
According to court documents obtained Monday by Radar, Los Angeles County District Attorney George Gascón has reached a deal with Yeezy Apparel LLC and Yeezy LLC. The companies will pay $950,000 to settle a civil lawsuit alleging that Ye's online clothing and sneaker company engaged in unlawful business practices and false advertising.
Following an investigation into the allegations, Gascón determined that West and his team had failed to ship purchased items to consumers in a timely manner, and also made untrue or misleading statements regarding their ability to send items within a certain timeframe, even in instances where customers paid extra for expedited shipping.
"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."
The investigation and prosecution efforts were led by the District Attorney's Consumer Protection Division, which included the DA offices of Alameda, Sonoma and Napa County.
The judgment was entered last Wednesday and signed by L.A. Superior Court Judge Randolph M. Hammock.
The La Palma-based company must now pay $200,000 in civil penalties to each of the four DA offices involved, $50,000 in restitution to the Consumer Protection Prosecution Trust Fund, and $25,000 in investigative costs to each of the four DA offices.
Under the terms of the settlement, Yeezy is prohibited from making untrue or misleading statements regarding a shipping timeframe or refund, must adhere to state and federal laws regarding the issuance of delay notices, and is required to refund money to all future consumers who purchase products that are not shipped in a timely matter.
Per California and federal statutes, online orders must be sent out within 30 days of purchase. If the company fails to do so, it must either provide the consumer with a written notice explaining the delay and offer a refund, or send them equivalent or superior replacement goods.
Per court documents, Yeezy Apparel LLC and Yeezy LLC cooperated in the investigation but did not admit to any wrongdoing.