Settlement Secured Requiring Online Retailer to End Deceptive Practices

Concord, NH - Attorney General John M. Formella announces that New Hampshire has joined a multistate settlement with TFG Holding, Inc., the parent company of online fashion retailers JustFab, ShoeDazzle, and FabKids, requiring sweeping reforms to the company's marketing and billing practices after widespread complaints of deceptive and unfair conduct.

The settlement resolves allegations that TFG enrolled consumers in a paid VIP Membership Program without clear consent, obscured recurring monthly charges, and made cancellation unnecessarily difficult.

"This settlement sends a clear message that companies doing business in New Hampshire must be upfront with consumers and honor their right to make informed choices," said Attorney General Formella. "This agreement not only stops deceptive practices but puts enforceable safeguards in place to ensure fair treatment moving forward."

Under the terms of the settlement, TFG must implement strict injunctive measures designed to protect consumers and prevent future harm, including:
• Clear and conspicuous disclosures about the terms of its VIP Membership Program, including pricing, enrollment, and recurring charges;
• Eliminating deceptive advertising tactics, such as false countdown timers and misleading claims of time-limited offers;
• Securing express, informed consent from consumers before enrolling them in any recurring payment program;
• Providing a simple and accessible online cancellation mechanism, and honoring all cancellation requests promptly;
• Ceasing all recurring charges to legacy accounts that have been inactive since May 31, 2016;
• Offering refunds to consumers charged within the past year who request reimbursement;
• Automatically issuing restitution to certain long-inactive consumers enrolled in the program before May 2016.

Consumers who believe they were improperly charged may also be eligible to file a complaint and request restitution within 90 days of the settlement's effective date. Consumer restitution falls into two categories:
• Consumers in the settling states who enrolled in a JustFab membership before May 31, 2016, will automatically receive refunds. The total amount for New Hampshire residents is still being determined.
• JustFab will also provide restitution to consumers who file complaints related to the conduct described in the Assurance within 90 days of its effective date.

Although the focus of the settlement is on correcting deceptive practices and protecting consumers moving forward, TFG will pay $1 million to the 33 participating jurisdictions to cover investigative costs and support future consumer protection efforts. New Hampshire will receive $15,000 of this amount.