Dolce & Gabbana, the renowned Italian fashion brand, and UNXD, a digital assets platform, are facing a class action lawsuit from a dissatisfied customer. The lawsuit stems from alleged delays in delivering non-fungible token (NFT) products, resulting in a massive 97% loss in their value.
According to a Bloomberg report, the customer, identified as Luke Brown, paid $6,000 for “DGFamily NFTs,” a unique Dolce & Gabbana product that combines digital and physical assets, offering exclusive privileges and experiences within the brand’s wider ecosystem.
The NFTs were reportedly delivered more than a week later than expected, causing their value to plummet by $5,800. Furthermore, a set of accompanying “outfits” for the NFTs, intended for display in the metaverse, were delayed by an additional 11 days.
Brown has taken legal action on behalf of all customers who purchased the NFTs, claiming that Dolce & Gabbana and UNXD failed to fulfill their promises made during the transaction.
According to the report, the delivery delays occurred because Dolce & Gabbana failed to obtain approval for the accompanying assets from the UNXD NFT platform. The exact number of affected customers remains uncertain at this time.
This case sheds light on the ongoing challenges faced by companies, brands, and marketers as they navigate the transition from physical goods to hybridized digital assets. Physical products, such as fashionable clothing items, operate in a vastly different market compared to digital assets, often with minimal correlation between the two.
Complicating matters further, the Dolce & Gabbana NFTs were created on the Ethereum blockchain for the “D&G Metaverse.” Ethereum powers the world’s second most popular cryptocurrency and has previously seen Dolce & Gabbana NFTs sell for millions of dollars. These factors could potentially impact the outcome of the class action lawsuit, should it proceed.
Cointelegraph reached out to Dolce & Gabbana for comment but did not receive an immediate response.