Rent the Runway sued by competitor FashionPass

Fashion rental service Rent the Runway is being sued by smaller competitor FashionPass, according to WWD. FashionPass claims Rent the Runway has “embarked upon a wrongful, anticompetitive scheme” by “coercing” top suppliers to sign agreements which prevent them from selling merchandise to other clothing rental companies.

FashionPass says it lost 20 suppliers, including three of its top five revenue-generating brands, after those companies entered an exclusivity agreement with Rent the Runway. As a result, the smaller company claims to have lost more than 200,000 US dollars. FashionPass is seeking damages in excess of 6 million US dollars.

Founded in 2009 by Jennifer Fleiss and Jennifer Hyman, Rent the Runway is the leading US platform to rent designer apparel, accessories and home decor in the United States, with a portfolio of over 600 brands. The company received 125 million US dollars in its largest funding round to date last week, which has increased its valuation to 1 billion US dollars.

FashionPass was founded in 2016 by Brittany Johnson, who started the company from her Los Angeles apartment.

FashionUnited has contacted FashionPass and Rent the Runway for comment. This article shall be updated once any of the companies respond to our request.