Nfts
Dolce & Gabbana hit by lawsuit over Metaverse outfit NFT
Last updated: May 17, 2024 01:09 EDT | 1 minute reading
A customer sued Dolce & Gabbana USA on Thursday, claiming the NFTs he purchased lost 97% of value due to a botched delivery from the company.
Bloomberg reported The Italian fashion house sold the NFTs on Ethereum on Friday, promising “a series of digital, physical and experiential benefits.” It reportedly told consumers that purchasing its DGFamily NFTs would unlock access to various digital rewards, physical products, and exclusive events.
The lawsuit further alleges that Dolce & Gabbana failed to deliver the NFTs and promised benefits on time. The digital outfits, which arrived 20 days late, “could only be used on a metaverse platform with virtually no users.”
Dolce & Gabbana allegedly misled NFT buyers with unusable digital fashion
Even after the delayed arrival, token holders would have had to wait another 11 days before being able to use them. According to the complaint, Dolce & Gabbana did not obtain prior approval from the Metaverse platform.
“Their standard operating procedure is to promise products they fail to deliver, before abandoning a project and community they promised to support,” the complaint states.
Luke Brown, the plaintiff, claims he lost $5,800 on the NFTs he purchased. Brown said he is suing on behalf of others who purchased digital assets from this NFT project. His lawsuit also targets the NFT market UNXDmaking him a party to the lawsuit.
NFT Market Growth Slows in 2024
The NFT market has shown signs of growth so far in 2024. Estimates suggest a 41% increase in market value compared to 2023. This is, however, a significant slowdown compared to the explosive growth of previous years.
Some high-profile sales like CryptoPunk 3100 collected $16 million in March. But the general trend points to a decline in value for many NFTs.