If you’re a big spender who also loves reality TV, you were probably bummed when Kim Kardashian and her sisters abruptly backed out of their much-hyped deal to promote a controversial new prepaid debit card featuring their stylish, smiling images.
Now, the Kardashian sisters are the ones feeling the pain. Kim, Kourtney and Khloe, as well as their mother, Kris Jenner, are all being sued to the tune of $75 million by Revenue Resource Group for breach of contract.
The lawsuit claims the famous trio signed a two-year agreement, and the company wants them to pay for bailing on their promise to endorse the shady card. A lawyer for RRG told E! that the terminated deal, plus the negative publicity that ensued, has “effectively put this company out of business.”
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Kardashian Sisters Sued for $75 Million | Kim Kardashian
Published on January 9, 2011 by admin ·
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If you’re a big spender who also loves reality TV, you were probably bummed when Kim Kardashian and her sisters abruptly backed out of their much-hyped deal to promote a controversial new prepaid debit card featuring their stylish, smiling images.
Now, the Kardashian sisters are the ones feeling the pain. Kim, Kourtney and Khloe, as well as their mother, Kris Jenner, are all being sued to the tune of $75 million by Revenue Resource Group for breach of contract.
The lawsuit claims the famous trio signed a two-year agreement, and the company wants them to pay for bailing on their promise to endorse the shady card. A lawyer for RRG told E! that the terminated deal, plus the negative publicity that ensued, has “effectively put this company out of business.”
In RadarOnline’s report, Pamela Banks of the Consumers Union explains the backlash about the debit card and the Kardashians’ implicit endorsement of shopping beyond one’s means. “Tying a card to someone who is famous or wealthy can get more consumers to say, ‘I want to be more like the rich and famous.’ … But prepaid debit cards do not have the same protections that traditional debit cards have, and often have hidden fees that eat away at their value.”
Indeed, once the government launched an aggressive investigation in November into the plan’s “draconian” fees (the card reportedly cost up to $99.95 to purchase, $7.95 per month to use after the first year, $6 for customer service calls and up to $500 in penalties for lost cards) the Kardashians cut ties with the company.
Many fans who look up to the Kardashians aspire to their glam lifestyle, but the sisters seemed to realize too late that associating themselves in this struggling economy — or any, for that matter — with a punishing debit card was a pretty daft decision.
The new lawsuit seeks whopping damages, and it’s not as if Kim, Khloe and Kourtney needed more bad news. Their fledgling fashion empire was on very shaky ground at the end of 2010 with Bebe hinting at ending its partnership with the reality TV stars. A New York Times columnist slammed the sisters’ Manhattan boutique, Dash, in December. “Dash is a fashion desert,” wrote columnist Jon Caramanica. “As in most theme parks, there wasn’t anything worth carrying away but memories.”