URGENT UPDATE: North Carolina has just announced a groundbreaking $4.8 million settlement with online clothing retailer TFG Holding, Inc., which operates brands like JustFab, ShoeDazzle, and FabKids. This settlement addresses serious allegations of deceptive marketing practices that misled consumers across the state.
Attorney General Jeff Jackson revealed earlier today that the lawsuit, filed by 33 attorneys general, accused TFG of employing misleading tactics to promote its VIP membership program. Customers were drawn in by enticing discounts but faced surprise monthly charges of $49.95 unless they actively opted out each month.
The lawsuit also highlighted that TFG misrepresented prices on its website and automatically enrolled customers into the VIP program without their consent, complicating the cancellation process. This has raised significant concerns about consumer rights and transparency in online retail.
As part of this settlement, North Carolina consumers will receive nearly $197,552 in restitution. According to the Attorney General’s office, 87 customers will automatically receive refunds, while others who believe they were affected must file complaints with the North Carolina Department of Justice by January 30, 2026, to seek reimbursement.
Jeff Jackson emphasized the importance of this settlement, stating,
“The money we won back will help refund customers who were misled by these companies. If you had a bad experience with any of these brands, please file a complaint with our office.”
This statement underscores the ongoing commitment to protecting consumer rights and holding companies accountable for their marketing practices.
The settlement not only provides financial relief for those impacted but also mandates that TFG improve its practices. The company is now required to obtain clear consent from customers, ensure transparency regarding the VIP program terms, halt unauthorized recurring charges, and simplify the cancellation process.
This case spotlights the growing scrutiny on online retailers and their advertising practices, particularly as more consumers shift to digital shopping. The developments in this settlement signal a crucial step towards enhancing consumer protection and promoting ethical marketing standards in the e-commerce sector.
As the situation continues to unfold, it is vital for consumers to stay informed and proactive. For those who have engaged with JustFab, ShoeDazzle, or FabKids, now is the time to review your transactions and consider filing a complaint if you feel misled.
Stay tuned for further updates on this developing story as North Carolina takes significant strides in consumer protection.
