Aussie company sued in $100m Kim Kardashian Instagram ‘scam’ lawsuit

An Australian social media influencer company has been named in a class-action lawsuit against Kim Kardashian and Scott Disick over an alleged fake lottery in the United States.

Exclusive: A Sydney-based company has been sued alongside Kim Kardashian and Scott Disick for at least $A100 million over running an alleged illegal lottery in the United States.

Curated Businesses, registered in Collaroy in Sydney’s Northern Beaches, promoted Instagram giveaways in 2020 with the promise of prizes worth $US100,000 ($A150,000), including two first-class tickets and a three-night hotel stay in Los Angeles to “shop like Kim Kardashian”, according to the lawsuit, obtained by News Corp Australia.

Kim Kardashian and Curated Businesses promoted the giveaway on Instagram. Picture: Supplied

The class action by those who did not win the contest, led by Florida resident Alin Pop, claims the contests were used to sell personal information to advertisers that have since “invaded” them with “potentially offensive and unwanted content”.

“Kim K. and Disick are not giving away anything. As part of this transaction, they are cashing in indecent amounts of money. They are teaming up and, together with an Australian company (Curated), they are selling the personal information of their followers,” the lawsuit claims.

While Curated Businesses could not be reached for comment, the company’s founder, Schye Fox, told Sydney Confidential in 2020 that each Instagram giveaway was registered with NSW Fair Trading.

Curated Businesses founder, Schye Fox. Picture: Supplied

That included submissions of details including the closing date and time for receipt of entries, place, date and time of the lottery draw, how prizes will be awarded, a method for claiming prizes, how prize winners will be notified, and how the results of the lottery will be published, the promoter’s name, address and telephone number and details of the prizes and their value.

“We always obtain the necessary government-issued lottery permits for our campaigns and the final draw is conducted by an independent third party and overseen by a certified scrutineer,” the company adds on its website under the FAQ, “is this real”?

But it is those giveaways from 2020, run by Kendal Jenner, Kris Jenner, Kylie Jenner, Khloe Kardashian, Kourtney Kardashian, Sofia Richie, and Gretchen Christine Rossi, that are being targeted in the class action lawsuit filed in California on September 15.

Kylie Jenner running a designer giveaway through Curated Businesses. Picture: Supplied

Bec Judd and Nadia Bartel running a designer giveaway through Curated Businesses. Picture: Supplied

“The license that Curated has in Australia does not cover organising lotteries outside Australian territory, in the United States, or specifically in Florida and California,” the lawsuit said.

“Even if the Defendants claim that lotteries are organised by the promoter in Australia, often, the participants must enter through on an Instagram account belonging to Disick, a person residing in California.”

The lawsuit argues that Mr Pop, based in Florida, entered the lottery promoted by Kardashian, a Californian resident, through the US company, Instagram, and the account of American citizen, Mr Disick. Representatives for Mr Disick, Ms Kardashian, and Mr Pop did not immediately respond to requests for comment.

Kim Kardashian, Kourtney Kardashian and Scott Disick attend the Jill Stuart Spring 2011 fashion show in New York. Picture: Getty Images

The lawsuit is seeking at least $US66.7 million ($A100 million) across all defendants and counts: $US20 million from each of the three named defendants for “operation of illegal Florida lotteries”, another $US5 million for “unjust enrichment”, and $US1.7 million for “negligent misrepresentation”, plus fees and costs.

According to the Curated Businesses website, the company in 2020 gave away prizes valued up to $US645,646, plus another $A92,900 to 38 winners and runners-up from the US (including California and Florida), Australia, the UK, Canada, Germany, Japan, Peru, Venezuela, Mexico, South Africa, Jamaica, Puerto Rico, Ireland, Denmark, India, and Ecuador.

The winner of the largest, “Khloe Kardashian Campaign”, a prize valued at $US94,916.33, posted the results on Instagram.

“Dreams really do come true,” wrote Instagram user @AdrienneGrover1, of Minnesota, surrounded by Louis Vuitton bags.

“Honoured, humbled, and had to have a little fun with this whole experience!!! @curatedbusinesses – I’ve said it once, but I will definitely say it again … you have blessed me beyond measure!!!”