A customer has sued luxury brand Dolce and Gabbana for making him endure a loss of $5,800 on the NFTs he purchased. Luke Brown, the filer of the complaint, shelled out $6,000 to buy an Ethereum-based NFT from the brand’s DGFamily collection.
The brand had allegedly promised buyers that they would be bestowed with exclusive drops, collaborations, physical products, and a slate of events. According to the official filing submitted to the Manhattan federal court, the NFTs were not delivered on time.
Likewise, even other special benefits were deferred. The NFTs were essentially outfits. According to the complaint, these outfits could only be used in a metaverse platform with “barely any users.”
Customers have come together to file a class action lawsuit, and Brown is representing the case on behalf of users who bought the NFTs. The outfits were delivered twenty days late, and buyers couldn’t use them for another eleven days because the company allegedly failed to secure approval from the metaverse platform in prior.
The filing further noted,
“Their standard operating procedure has been to promise products they fail to deliver, before abandoning a project and community they promised to support.”
The plaintiffs are now pointing fingers at the luxury brand for fumbling the delivery that eventually led to the 97% price crash of their NFT holdings.
In 2022, Dolce and Gabbana unveiled DGFamily, their own in-house NFT community. This was done in partnership with the UNXD marketplace. Now, UNXD has also been named in the case as a defendant.
Back in the day, when the NFT-Metaverse hype was at its peak, several luxury brands including Lacoste, Budweiser, Adidas, Nike, Gucci, Tiffany, and McLaren, had stepped in and launched their own collections. In fact, these brands - including D&G - were in the news for generating revenue via NFT sales worth millions.
At the moment, there are around 1.57k holders of DGFamily. The floor price of this collection has been hovering around 0.0236 ETH of late. Barring a couple of exceptions, the volume has mostly remained null and void this year, indicating that the hype and interest associated with this collection has fizzled out.
