Yeezy Apparel LLC and Yeezy LLC, which are headquartered in La Palma, will pay $950,000 to settle a civil lawsuit alleging the online sneaker and clothing company engaged in unlawful business practices and false advertising by failing to ship items in a timely manner, the DA’s office said in a news release.
The judgment was entered on Nov. 3 and signed by L.A. County Superior Court Judge Randolph M. Hammock, the DA’s office said. The total payment of $950,000 will be divided as follows:
- $200,000 in civil penalties to each of the four district attorney offices involved
- $50,000 in restitution to the Consumer Protection Prosecution Trust Fund
- $25,000 in investigative costs to each of the four district attorneys’ offices
Under the settlement, Yeezy Apparel 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, according to the DA’s office.
California and federal statutes require that orders placed over the internet be shipped within 30 days. 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.
Yeezy Apparel also allegedly made untrue or misleading statements regarding its ability to ship products within a certain time frame, particularly where customers paid an additional charge for expedited shipping, the DA’s news release states.
“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” District Attorney George Gascón said in a statement. “We will enforce state and federal laws governing online shopping in Los Angeles County.”
The companies cooperated in the investigation and did not admit wrongdoing, officials said.
The District Attorney’s Consumer Protection Division led the investigation and prosecution efforts, which included Alameda, Sonoma, and Napa county district attorney’s offices.