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Dolce & Gabbana Sued Over $6,000 Metaverse NFTs

Last Updated May 17, 2024 11:39 AM
Teuta Franjkovic
Last Updated May 17, 2024 11:39 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • A customer is suing Dolce & Gabbana over NFT losses.
  • The lawsuit claims the fashion company failed to deliver promised benefits, devaluing NFTs.
  • The case highlights need for transparency and trust in NFT ventures by established companies

Dolce & Gabbana is facing a lawsuit  from a customer who claims he suffered a 97% loss on his $6,000 investment in Non-Fungible Tokens (NFTs) sold by the company. The NFTs included digital outfits for use in the metaverse.

Papers filed in a New York City court allege  the Italian luxury fashion house mishandled the delivery of these NFTs. Their marketing featured promises of digital, physical, and experiential benefits on the Ethereum blockchain.

Dolce & Gabbana Sued Over Alleged Mishandling of DGFamily NFTs

According to the complaint , Dolce & Gabbana said the DGFamily NFTs offered buyers access  to rewards, products, and exclusive events.

However, the company reportedly failed to deliver the NFTs on time and the digital benefits arrived 20 days late. Additionally, the digital outfits were only usable on a metaverse platform that lacked a significant user base.

The lawsuit against Dolce & Gabbana continues to develop as Luke Brown, the plaintiff, alleges that the company mishandled the rollout of their NFTs.

Class Action Lawsuit Over Alleged NFT Value Loss

Brown says that when the digital outfits were finally released, they were unusable for an additional 11 days. This was because they had not been approved by the metaverse platform. The complaint accuses Dolce & Gabbana of routinely promising  products and community support that they fail to deliver before they abandoned the project altogether.

Brown, who claims  to have lost $5,800 on the NFTs, filed the lawsuit seeking to represent a proposed class of consumers who purchased digital assets from Dolce & Gabbana. The complaint also implicates NFT marketplace UNXD as a co-defendant.

Neither Dolce & Gabanna, nor UNXD, immediately responded to a request for comment.

Dolce & Gabbana’s NFTs Set a New Standard for Luxury Fashion

Dolce & Gabbana embraced the NFT trend early with the launch  of their “Genesis Collection” in 2021.

According to its website, the collection represented a “significant fusion of traditional Italian haute couture and cutting-edge blockchain technology”.

It featured nine unique items, and made around 1,885 ETH, worth nearly $6 million at the time, in sales.

So far in 2024, the NFT market has grown 41% , albeit at a slower pace than the explosive growth seen in earlier years.

Implications for Traditional Companies in the NFT Space

The lawsuit against Dolce & Gabbana raises questions about the accountability and dependability of traditional companies moving into NFTs. Although blockchain technology can give businesses new opportunities, they still need to keep their promises.

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