Nfts
Dolce & Gabbana faces class action lawsuit after NFT delivery boondoggle
A disgruntled customer has filed a class action lawsuit against Italian fashion brand Dolce & Gabbana and digital asset platform UNXD after alleged delays in the delivery of non-fungible token (NFT) products caused digital assets to lose 97%. of their value.
According to a Bloomberg report, a customer identified as Luke Brown paid $6,000 for “DGFamily NFT,” a Dolce & Gabbana product combining digital and physical assets as privileges and experiences within the brand’s larger ecosystem.
Class action
The NFTs were reportedly delivered more than a week late, causing their value to drop by $5,800. A set of accompanying “outfits” for the NFTs, which were supposed to be displayed in the metaverse, were further delayed by 11 days after initial delivery.
Brown filed a class action lawsuit on behalf of all customers who purchased the NFTs, alleging that Dolce & Gabbana and UNXD failed to fulfill promises made at the time of the transaction.
According to the report, the delivery delays occurred after Dolce & Gabbana failed to gain approval for associated assets from the UNXD NFT platform. It is not yet clear how many customers may have been affected by the alleged delays.
A concern of the NFT industry
This case highlights the ongoing struggle of businesses, brands, and marketers as the realm of physical goods, products, and assets transitions to hybrid digitalization.
A physical product, such as a fashionable piece of clothing, operates in a dynamically different market than a digital asset, often with little correlation between them.
To further complicate matters, Dolce & Gabbana NFTs were created on the Ethereum blockchain for the “D&G Metaverse”.
The Ethereum blockchain powers the world’s second most popular cryptocurrency and, as Cointelegraph reported, Dolce & Gabbana NFTs sold for millions of dollars in the past. These facts could impact the class action if it moves forward.
Related: Iconic brands including Nike and Gucci made $260 million off NFT sales
Cointelegraph reached out to Dolce & Gabbana for comment but did not receive an immediate response.