A customer has sued Dolce & Gabbana USA Inc., alleging that the luxury fashion brand mishandled the delivery of its non-fungible tokens (NFTs), resulting in a loss in value.
According to a Bloomberg report, the plaintiff, Luke Brown, claims that D&G's NFTs, which he spent $6,000 on, lost 97% of their value due to the company's failures.
The lawsuit was filed on behalf of a proposed class of individuals who purchased digital assets from Dolce & Gabbana's NFT project.
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Marketed under the DGFamily brand, these tokens were sold on the Ethereum blockchain, promising buyers exclusive digital rewards, physical products, and special event access.
Brown's attorneys argued that the company frequently promises products it fails to deliver and then abandons the project and community it pledged to support.
The complaint highlights significant delays in the delivery of these NFTs, causing customer frustration. The digital outfits, a key feature, were released 20 days late.
Moreover, even after the digital outfits were released, they were unusable for another 11 days, as D&G had not got approval from the NFT marketplace, UNXD. The marketplace is also named as a defendant in the lawsuit.
Neither Dolce & Gabbana nor UNXD has commented on the situation.
From a broader perspective, the lawsuit underscores the concerns and challenges in the NFT market, particularly regarding the fulfillment of promises made by issuers.
In other news, in April, Adidas collaborated with Stepn to launch a collection of NFT sneakers.
