The Dash Dolls, AKA Kim Kardashian, Khloe Kardashian-Odom, Kourtney Kardashian, and represented by mother Kris Kardashian (aka Kris Jenner), recently pulled out of there deal to market a MasterCard prepaid debit card under their name. The company they had an agreement with on this card is none too happy and has sued the sisters and their company for big bucks.
The suit says that the card was going to be issued through University National Bank in Minneapolis, Minnesota. Mobe, Inc was going to be running the technology show behind the scenes.
Here is where the problem really explodes. In June of 2010 the Kardashian sisters entered into a agreement that allowed the card distributor to use their names, likenesses, signatures, photographs, and endoresement to market the card.
The marketing company was going to pay the sisters $3 per card activated and $7.95 per month and 25% of usage fees. On signing the agreement the sisters got $37,500 with an additional $37,500 due in six months.
The sisters bailed because of the fees the card was charging but this seems to have only become an issue after the card was launched. In documents made available it appears the fees associated with the card were addressed and in fact one document addresses fees and talks about how the Kardashian card is more favorable than tat promoted by Russell Simons.
It appears the Kardashians’ angst was created when shortly after the launch of the Kardashian Kard the Connecticut Attorney General opened an investigation into the fees charged by the card and if those fees violated state law. The Attorney General said:
This card — or kard — appears to specifically target young adults in evoking the name and image of the Kardashian family who showcase lives of luxury and extravagance. Known for their reality show — Keeping up with the Kardashians — the family is marketing a dangerous financial fantasy.
Ironically, the Kardashian Kard will distance consumers from the financial abundance key to the Kardashian’s lifestyle. Consumers lose money before they can use it with this card. – Source
AG Blumenthal wrote to the issuing bank and expressed concern over the fee schedule on November 26, 2010. – Source
As part of the arrangement the Kardashian sisters were to make some public appearances and tweet about it as well as talk it up on Facebook, blogs, QVC, reality television programs. television shows, radio programs, radio appearances, and the like.
According to the lawsuit, problems began as soon as the launch party for the Kardashian Kard. Apparently while the sisters were supposed to make a three hour public appearance at PACHA in New York, they instead left after 55 minutes and had to be “demanded” back to the club where they spent another 40 minutes and then split. The launch part can be seen in the small video above.
The launch party on November 9, 2010 is said to have cost the Revenue Resource Group about $65,000 and because of the negative publicity about the launch party and that the Kardashians’ behavior was “widely and negatively reported,” the party was said to be a flop. It is said the ensuing spoofing and ridicule of the the entire situation resulted in the following video from Saturday Night Live.
On November 29, 2010 the Kardashian’s pulled out of the deal by sending a termination letter to the Revenue Resource Group at the same time the Kardashian’s notified the media outlets. The Revenue Resource Group says they found out about the termination from the media first.
As the result of all of this, the Revenue Resource Group wants $75,000,000 in damages. They also say that to launch this card they spent no less than $500,000 in expenses, only to have the deal fall apart just weeks after the launch.
All in all the Revenue Resource Group would be most appreciative if the Dash Dolls would pay them $75,000,000, $65,000 for the launch party, the $500,000 in operating expenses, and the $37,500 deposit back.