Dolce & Gabbana, the renowned Italian fashion brand, along with digital assets platform UNXD, is facing a class-action lawsuit from an unhappy customer. The lawsuit stems from alleged delays in delivering nonfungible token (NFT) products, which resulted in a massive 97% loss in their value.
The customer in question, Luke Brown, reportedly paid $6,000 for the “DGFamily NFTs,” a unique Dolce & Gabbana product that combines digital and physical assets, offering exclusive privileges and experiences within the brand’s larger ecosystem.
According to Bloomberg, the NFTs were delivered more than a week later than promised, during which time their value plummeted by $5,800. Furthermore, a set of accompanying “outfits” for the NFTs, intended for display in the metaverse, was delayed by an additional 11 days after the initial delivery.
Brown has taken legal action on behalf of all customers who purchased the NFTs, claiming that both Dolce & Gabbana and UNXD failed to fulfill their promises made at the time of the transaction.
The report suggests that the delivery delays occurred because Dolce & Gabbana did not obtain approval for the accompanying assets from the UNXD NFT platform. The exact number of affected customers remains unclear.
This case sheds light on the ongoing challenges faced by companies, brands, and marketers as they navigate the transition from physical goods and assets to a hybridized digital landscape. The market dynamics for physical products, such as fashionable clothing items, differ significantly from those of digital assets, often showing little correlation with each other.
Adding to the complexity, the 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. As previously reported by Cointelegraph, Dolce & Gabbana NFTs have fetched millions of dollars in previous sales. These factors could potentially impact the outcome of the class-action lawsuit if it proceeds.
Cointelegraph reached out to Dolce & Gabbana for a comment but did not receive an immediate response.