Attorney General Skrmetti Secures Settlement with Online Clothing Retailer over Deceptive Practices

Attorney General Skrmetti Secures Settlement with Online Clothing Retailer over Deceptive Practices

NASHVILLE-Attorney General Skrmetti today announced a $1 million multistate settlement with online clothing retailer TFG Holding, Inc., which operates JustFab, ShoeDazzle, and FabKids. The settlement resolves allegations that the company deceived consumers about its VIP Membership Program and made cancellations and refunds unreasonably difficult.

In addition to the $1 million settlement payment to the multistate coalition, affected Tennessee consumers together will automatically receive refunds totaling $110,781.35. Pursuant to the settlement, additional consumers who seek refunds from the company may do so by submitting a written complaint to the email address [email protected] by January 30, 2026. Consumers may also send their complaints to the Attorney General's Office.

"This settlement holds TFG Holding accountable for tricking Tennessee consumers into expensive memberships they didn't want and then making it nearly impossible to cancel," said Attorney General Skrmetti. "The automatic refunds will put money back in the pockets of Tennessee families who were deceived by these illegal practices. This case sends a clear message that companies must be transparent about recurring charges and simplify cancellation."

The 33-state investigation found that TFG Holding violated consumer protection laws by misrepresenting prices, enrolling consumers without consent into the VIP program with recurring charges, making cancellation difficult, and failing to disclose that purchases would automatically trigger membership enrollment.

Under the settlement terms, TFG Holding must clearly disclose all material terms and recurring charges before enrollment, obtain express informed consent for VIP Membership Program enrollment, provide a simple online cancellation mechanism, and discontinue deceptive marketing practices such as fake urgency countdown timers. The company must offer refunds to consumers for any recurring charges accrued within the past year and must cease billing certain consumers who enrolled prior to May 31, 2016.

Tennessee joined 29 other states in the negotiation led by the District of Columbia, Pennsylvania, Maryland, and Texas.

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