UPDATE: North Carolina has just announced a groundbreaking $4.8 million settlement with online clothing retailer TFG Holding, Inc., which operates brands including JustFab, ShoeDazzle, and FabKids. This urgent development follows allegations of deceptive marketing practices that misled consumers into costly memberships.
Attorney General Jeff Jackson revealed the settlement on Tuesday, detailing that North Carolina will receive $197,552 in restitution for its residents. The lawsuit, spearheaded by 33 attorneys general, accused TFG of employing tactics that included misleading discounts and automatic enrollment into their VIP membership program without proper consent. Customers faced significant hurdles when attempting to cancel their memberships, which came with a recurring charge of $49.95 each month.
The settlement mandates TFG to improve customer consent procedures and transparency regarding the VIP program’s terms. Consumers will now find it easier to cancel memberships, a vital change aimed at protecting their rights. 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.”
Moving forward, 87 customers will automatically receive refunds, while others who believe they are owed money must submit a complaint to the North Carolina Department of Justice by January 30, 2026. This settlement not only provides financial relief but also reinforces consumer protection against deceptive practices in the online retail market.
As this situation develops, North Carolinians are encouraged to stay vigilant and aware of their rights as consumers. The Attorney General’s office is actively seeking to ensure that similar incidents do not occur in the future. This case underscores the significance of consumer advocacy and the power of collective action in holding corporations accountable.
