Dolce & Gabbana, an Italian fashion brand, and UNXD, a digital assets platform, are facing a class action lawsuit from an unhappy customer. The lawsuit claims that delays in delivering non-fungible token (NFT) products resulted in a 97% loss in their value.
According to Bloomberg, the customer, known as Luke Brown, purchased “DGFamily NFTs” from Dolce & Gabbana for $6,000. These NFTs combine digital and physical assets, offering privileges and experiences within the brand’s ecosystem.
Unfortunately, the NFTs were delivered over a week later than expected, causing their value to drop by $5,800. Furthermore, the 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 bought the NFTs, alleging that Dolce & Gabbana and UNXD failed to fulfill their promises made during the transaction.
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 is unknown at this time.
This case highlights the challenges faced by companies, brands, and marketers as physical goods and assets transition into a hybrid digital format. Physical products operate in a different market than digital assets and often have little correlation with each other.
Adding complexity to the matter, the Dolce & Gabbana NFTs were created on the Ethereum blockchain for the “D&G Metaverse.” Ethereum is the second most popular cryptocurrency globally and Dolce & Gabbana NFTs have previously sold for millions of dollars. These factors may impact the outcome of the class action lawsuit, should it proceed.
Cointelegraph reached out to Dolce & Gabbana for comment but has not yet received a response.