- A bipartisan coalition of 33 AGs secured a $4.8 million multistate settlement with TFG Holding, Inc., (TFG) an online retailer that sells shoes, clothing, and accessories through brands that include JustFab, ShoeDazzle, and FabKids. The settlement resolves allegations that the company deceptively marketed its VIP Membership Program in violation of state consumer protection laws.
- The AGs alleged that TFG engaged in misleading advertising and marketing, automatically enrolled consumers in its VIP program, charged members recurring monthly fees, and made cancellation difficult.
- Under contemporaneous agreements with each participating state, TFG agreed to provide approximately $3.8 million in automatic refunds to eligible consumers and to pay $1 million to the participating states for costs and future consumer protection efforts. As outlined in the agreements—such as the agreement reached with Pennsylvania—TFG will significantly reform its business practices, including providing clearer disclosures of membership, billing, and cancellation terms, and complying with all applicable laws.
- We have previously covered consumer protection actions involving retailer membership programs, such as a settlement between 32 AGs and online underwear retailer and a settlement between the FTC and an online children’s education company.