Court
Class action filed against luxury brand for delayed NFT delivery
A class action lawsuit has been filed against luxury fashion brand Dolce & Gabbana and digital assets platform UNXD over delays in delivering non-fungible tokens (NFTs), leading to a significant loss in value for buyers.
The lawsuit, initiated by customer Luke Brown, claims that delays in delivering “DGFamily NFTs” caused the digital assets to lose 97% of their value.
Brown alleges that he paid $6,000 for the NFTs, which combine digital and physical assets, but the delays led to a $5,800 drop in their value.
Additionally, related digital “outfits” for the metaverse were delayed by 11 days.
According to the complaint, Dolce & Gabbana and UNXD failed to meet the delivery timelines promised at the point of sale.
The delays reportedly stemmed from Dolce & Gabbana’s inability to secure approval from the UNXD platform for the NFTs. It remains unclear how many customers were affected by these delays.
This lawsuit underscores the challenges brands face in integrating physical and digital products. NFTs, unlike traditional goods, operate in a market where value can be highly volatile and influenced by timely delivery.
The Dolce & Gabbana NFTs, minted on the Ethereum blockchain, exemplify the potential pitfalls in this new digital economy.
Dolce & Gabbana’s past success with NFTs, including multimillion-dollar sales, adds a layer of complexity to the case.
If the class action proceeds, it could set a precedent for how companies manage and deliver NFT products.