A customer sued Dolce & Gabbana USA on Thursday, claiming the NFTs they purchased lost 97% in value due to the company’s failed delivery.
Bloomberg reported on Friday that the Italian fashion house was selling the NFTs on Ethereum, promising “a range of digital, physical and experiential benefits.” It reportedly told consumers that purchasing its DGFamily NFTs would provide access to various digital rewards, physical products and exclusive events.
The lawsuit further alleges that Dolce & Gabbana failed to deliver the NFTs and promise benefits on time. The digital outfits, which arrived 20 days late, “could only be used on a metaverse platform with hardly any users.”
Dolce & Gabbana allegedly deceived NFT buyers with unusable digital fashion
Even after the delayed arrival, token holders still had to wait eleven days before they could use them. According to the complaint, Dolce & Gabbana had not received prior approval from the metaverse platform.
“Their standard operating procedure is to promise products they don’t deliver on before abandoning a project and community they promised to support,” the complaint said.
Luke Brown, the plaintiff, claims he lost $5,800 on the NFTs he purchased. Brown said he is filing a lawsuit on behalf of others who purchased digital assets from this NFT project. His lawsuit is also against NFT marketplace UNXD, making it a party to the legal action.
The NFT market growth will slow down in 2024
The NFT market is showing signs of growth so far in 2024. Estimates point to a 41% increase in market value from 2023. However, this is a significant slowdown compared to the explosive growth of previous years.
Some high-profile sales, such as CryptoPunk 3100, raised $16 million in March. But the overall trend points toward a decline in value for many NFTs.