How (not) to Keep Up With the Kardashians (New Year’s update)

Hair and make-up: $12,000. Car service: $1,900. Bottle service: $6,360. Breach of contract: Priceless … or $75 million.


The drama continues in the life of reality TV stars Kourtney (31), Kim (30), and Khloe (26) Kardashian, and this time mom, Kris (55), is along for the ride, too. According to, all four have been named in a $75 million law suit filed by Revenue Resource Group (RRG), the Fresno, California-based sales and marketing firm that created the now-defunct prepaid Kardashian Kard (read my initial post about the Kardashian Kard here).

“The issue in the suit is whether or not the Kardashians breached their contract, as the lawsuit claims,” reports moneywatch. “If so, there’s a bigger lesson here than to avoid fee-ridden financial products; it’s read before you sign.”

Not bad advice for issuers AND users of alternative financial products.

Credit unions might be interested in reading about RRG’s characterization of prepaid debit cards in its lawsuit:

  • “Prepaid debit cards have become an increasingly popular way for consumers to pay for items rather than carrying cash or using traditional credit cards … Prepaid consumer debit cards have various convenience and safety features that may make them a superior alternative to using cash or traditional credit cards for many consumers.” (General Allegations No. 17)
  • “Consumers using prepaid debit cards are typically charged a series of different types of fees for using those cards. RRG is informed and believes and thereupon alleges those fees are set by the issuing bank, and may include transaction fees. RRG is informed and believes and thereupon alleges the fees for prepaid debit cards are disclosed to the consumer prior to the consumer's purchase of the prepaid debit card.” (General Allegations No. 18)
  • “The KARDASHIANS negotiated with RRG for the creation and promotion of the KARDASHIAN KARD. RRG disclosed all pricing and fees associated with the KARDASHIAN KARD.” (General Allegations No. 53)

For those of you interested in more of the financial fine print, according to the lawsuit:

  •  RRG agreed to pay the Kardashians $3 for each card activated or sold, 25% of the usage or transaction fees, and a $75,000 royalty advance ($37,500 paid upon the signing of the agreement and $37,500 paid six months later).
  • RRG paid $65,000 for a Kardashian Kard launch party held at the New York night club Pacha.
  • And according to CNN Money, RRG expected to make $75 million from the card during the two years the sisters were under contract.

Jan. 11, 2011

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  • Great post, Rebecca. Lessons learned all the way around -- at the Kardashian's expense. Interested to see how this turns out. Perhaps we'll be seeing a new reality series from the Kardashians: "How Kardashians Handle Riches to Rags." Now that would be must see TV!

    Keep up the good work.

    mike lawson
  • Maybe they can just continue posing in the flesh to keep up with their lifestyle?
    Patricia Cubas