Over the years, the Kardashians have built a phenomenal brand around beauty and media influence. The famous ladies' brand has since expanded into an empire that has them becoming the trendsetters for the standard of beauty. The Kardashians also spread their influence to other aspects of businesses that extend to fashion designing, lifestyle, and technology.
As of 2010, Kim, Khloe, and Kourtney ventured into the spheres of finance. The influential trio collaborated with Revenue Resource Group (RRG) LLC in a pre-paid credit card promotion targeted at youngsters. The contract signed included some designs centered on the sisters and how their social media platforms served as the major marketplace for the credit card. This, however, did not go far as the collaboration fell apart and led to legal drama. Here's a look through that era.
8 The Prepaid Card Was Said To Be Predatory
Kourtney and her sisters had their faces printed on the credit card called the Kardashian Kard. The finance project took off, and in less than a month, things went south. The Kardashian Kard went under scrutiny as experts claimed that it was predatory. Connecticut attorney Richard Blumenthal relayed that the card was ladened with charge fees, including ATM withdrawals, monthly and annual fees, bill pay fees, cancellation fees, and loading fees.
7 The Sisters Pulled Out Of The Deal
The Kardashians became fodder for tabloids and made news headlines. Many criticized the Kardashian Kards and the fact that it targeted young people and low-income earners. In essence, Kourtney, Kim, and Khloe decided they would not be associated with such. Their attorneys sent a document for contract termination to RRG, and the girls followed up with disassociating themselves. The Kardashian sisters were said to have not been aware of the hidden fees. The Kardashian Kard website became a site to inform fans of the issues surrounding the failed finance project as well as warn them against improper research on products.
6 There Were Scores of Criticisms
Blumenthal made it known that the card was designed according to the luxurious and "extravagant" lifestyle of the reality stars. He noted that it was not realistic towards the target customers and the fees that came with using the prepaid card were outrageous.
5 There Were Also Resolutions
At the time, the University National Bank made it known that the 250 customers who were already using the cards could continue for 30 days. The company added that it reviewed its agreement with Dash Doll LLC on the assurance that customers will get the excess charge fees back. Celent analyst Zilvinas Bareisis regarded the card as an entity that "made no sense." Bareisis shared that the business strategy was askew because it was based on younger people, but the charges were not at par. Bareisis added that if there was a thing such as "a luxury prepaid market," teenagers should not be the consumers.
4 The Effect On The Kardashians' Image
Their attorney shared a statement with Blumenthal's office noting that the Kardashians worked for many years on their image that has been positive all through. The report further read that the Kardashian Kard issue threatened the reality icons' outstanding image and negatively impacted them. Pamela Banks, who was the senior policy counsel for Consumers Union in Washington D.C, gave her take. She mentioned that tying celebrities to cards could generate more consumers who look forward to becoming wealthy and famous. However, prepaid cards usually do more harm than debit cards. This, according to Banks, was because of the hidden charges.
3 The Termination Resulted In A Lawsuit
Following the decision to discontinue promoting RRG and the Kardashian Kard, the girls incurred a $75 million lawsuit. RRG claimed that Kim and her sisters' failure to meet the end of the bargain and also abruptly pull out made them lose at least $75 million. The girls' mom Kris Jenner and their company Dash Dolls LLC, were also mentioned in the lawsuit. The TV stars were also accused of violating their sponsorship deal and the RRG joint business venture.
2 Inside The Legal Tussle
After RRG filed the lawsuit, the KUWTK stars were represented by attorneys Jeremiah Reynolds and Michael Kump, who immediately came up with an anti-SAPP remedy. The anti-SLAPP is considered a tactic in California legal jurisprudence where a person could counter a lawsuit based on their freedom of speech. In the Kardashians' case, the ladies spoke up about the Kardashian Kard, and RRG accused them of not saying positive things about the brand.
1 The Kardashians Won By Anti-SLAPP
With anti-SLAPP in the mix, the judge presiding the case was left to either certify that the case was a standard breach of contract which is not bound by anti-SLAPP or otherwise. This means that the Kardashians could rely on their exercise of the First Amendment freedom of speech, and in essence, the judge could dismiss the case. Ultimately Judge Jeffrey Hamilton decided that there was no breach of contract, adding that: "Instead, we have an attempt to also charge the defendants with loss of all other business unrelated to them, specifically tied to defendants' exercise of free speech."
