Yeezy, the sneaker and clothing brand created by Ye, the rapper-artist formerly known as Kanye West, agreed to pay almost $1 million to settle a lawsuit brought by the state of California over shipping delays.
The settlement comes less than two weeks after the Los Angeles county district attorney’s office sued the La Palma, California-based company for “unlawful business conduct” dating back at least four years.
The suit was also brought by the Alameda, Sonoma and Napa county district attorneys’ offices on behalf of the people of California.
Yeezy was ordered to pay $950,000, including $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 and $25,000 in investigative costs for fees, officials said.
The settlement was reached last week, the Los Angeles DA’s office said Monday evening, adding that the company cooperated with the investigation.
Yeezy did not admit any wrongdoing in the case.
California sued the two companies behind the Yeezy brand, Yeezy Apparel LLC and Yeezy LLC, last month, saying that they failed to ship goods within 30 days and didn’t notify customers or offer a refund, as required by California state law.
The companies also offered speedier shipping on its website, YeezySupply.com, for a cost, but then failed to deliver the items in time, according to the DA’s office.
“Online consumers are entitled to protection against unwarranted fees and unreasonably long waits for purchases to arrive on their doorsteps,” the district attorney, George Gascón, said.
“We will enforce state and federal laws governing online shopping in Los Angeles county.”
Yeezy’s sells a wide range of distinctive foam sneakers and slippers with prices ranging from $200 to nearly $500. The company also sells some apparel, including sweatshirts and tee-shirts.
Under the settlement, the companies are prohibited from making “untrue or misleading representations regarding a shipping timeframe or refund,” according to the Los Angeles DA’s office.
The company also must “adhere to laws relating to the issuance of delay notices; and [are] required to refund money to consumers who, in the future, purchase products that are not shipped in a timely fashion.”