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Scandals in Hollywood: Inside The Kardashian Kard Flop

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Photo by Ant Rozetsky on Unsplash

Kim, Khloe, and Kourtney Kardashian once ventured into finance and became the inspiration for the Kardashian Kard franchise. However, the business did not flourish.

The 2010s were quite memorable in the lives of the Kardashians. This is so because of the recorded successes and sometimes the business fails. One chaotic time during this period was when the famous family ventured into finance.

The Kardashians collaborated with a finance company that licensed a prepaid credit card named the Kardashian Kard. However, the credit card business crumpled as soon as it took off. Here’s a look back at all that went down. 

image: YouTube

The Kardashian Kard Fail

In 2011, Kim and her sisters made a deal with a company to produce the Kardashian Kard. The prepaid credit card had Kim, Kourtney, and Khloe’s faces stamped on the body.

The trio was also to promote the card on their social media pages and attend events that had to do with promoting the brand. The credit card’s target customers were teenagers and low-income earners.

However, things pretty much went south in a short while. Kim and her sisters made headlines as they abruptly pulled out of the deal and stopped promoting the Kardashian Kard. 

Revenue ResourceGroup LLC was the company that marketed the cards and it ended up suing the Kardashians for $75 million in damages. The lawsuit also included their mom, Kris Jenner, and their company Dash Dolls LLC in the filing. 

The documents obtained amid the lawsuit shared that RRG sued the three sisters, claiming that they lost $75 million after they pulled out of the collaboration.

It was also reported that the famous trio improperly terminated their two-year contract. The “KUWTK” stars ended their partnership after the credit card business took off.

Why They Ended The Kardashian Kard Contract

A few weeks after the Kardashian Kard got into the market system, experts noticed some discrepancies. In essence, there was a widespread complaint about the number of service charges that came with the card usage.

Attorney General Richard Blumenthal from Connecticut describes the card as “predatory” due to the fees attached to it. Blumenthal outlined that the card was filled with many charges.

These fees include annual fees of $99.95 and monthly fees of $7.95. Other added charges included bay bill feed, withdrawal fees, a card cancellation fee, loading fees, and a charge for speaking with a live operator at the service center. 

The clampdown and criticism prompted the Kardashians to get their lawyer who sent a notice of termination to RRG. It was also relayed that none of the Kardashians knew of the hidden charges. 

The Kardashians Won the Lawsuit.

Kourtney, Kim, and Khloe were represented by Michael Kump and Jeremiah Reynolds who quickly brought an anti-SLAPP motion. This is a tactic often used in California and it focuses on protecting freedom of expression.

This was brought in because the Kardashians raised awareness on the heavy charges that came with using the Kardashian Kard. RRG in turn accused the sisters of not saying positive things about the credit card. 

At this point, the judgment was left with two options; that the Kardashian’s action was a standard breach of contract or that they were free to express their First Amendment free speech rights. 

The judge opted for the latter, noting that the Kardashians were accused of a breach of contract and also accused of the other losses of the company. The judge granted the anti-SLAPP motion adding that the credit card features became clearer to the public, hence the losses.