Yes, but I think the “walking down he street and getting papped with Dior” phenomenon came later.
Liz Hurley doesn’t own those famous Versace dresses though. Those were just loaned for red carpet events.
Re: merching. Actors and musicians have been receiving freebies since at least 2000, if not earlier. Li’l Kim once rapped, “Y’all rock Versace and y’all went out and bought it // I rock Versace and y’all know I ain’t paid for it” — pretty sure freebies were handed out for red carpet events in the 90s (Liz Hurley’s Versace dress anyone?). Xtina Aguilera was given A&F orange trousers in her 1999 music video, “Genie in a Bottle”. But as far as pap-merch goes it is an online shopping auxiliary
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