Dolce and Gabbana face class action lawsuit after NFT shipping kerfuffle
A disgruntled customer has filed a class-action lawsuit against Italian fashion brand Dolce & Gabbana and digital assets platform UNXD over delays in delivering non-fungible token (NFT) products that caused its digital assets to lose 97% of their value.
According to a report from Bloomberg, a client named Luke Brown paid $6,000 for “DGFamily NFTs” for a Dolce & Gabbana product that combines digital and physical assets such as exclusive rights and experiences within the brand's ecosystem.
class action
NFTs were said to be late for more than a week, causing their price to drop by $5,800. The corresponding “clothing” set for the NFTs, intended for display in the Metaverse, was further delayed by 11 days after the initial delivery.
Brown filed a class-action lawsuit on behalf of all customers who purchased NFTs, alleging that Dolce & Gabbana and UNXD failed to fulfill promises made during the transaction.
According to the report, delivery delays occurred after Dolce & Gabbana could not obtain permission from the UNXD NFT platform for related assets. It is not immediately clear how many customers may have been affected by the delays.
An NFT industry concern
This case highlights the ongoing struggle for companies, brands and marketers as physical goods, products and assets move towards hybrid digitization.
A physical product like fashion clothing operates in a different market than a digital asset, often unrelated to each other.
Complicating matters further, Dolce & Gabbana NFTs were created on the Ethereum blockchain for the “D&G Metaverse”.
The Ethereum blockchain is the world's second most popular cryptocurrency and as Cointelegraph reports, Dolce & Gabbana NFTs were previously sold for millions of dollars. These facts may have an impact on the class action lawsuit if it moves forward.
Related: Brands including Nike, Gucci earn $260 million from NFT sales
Cointelegraph reached out to Dolce & Gabbana for comment but did not receive an immediate response.
