UPDATE: North Carolina has just secured a monumental $4.8 million multistate settlement with online retailer TFG Holding, Inc., which operates brands including JustFab, ShoeDazzle, and FabKids. Attorney General Jeff Jackson announced the settlement on Tuesday, addressing deceptive marketing practices that misled consumers.
The lawsuit, initiated by 33 attorneys general nationwide, alleges that TFG utilized misleading tactics to enroll customers in its VIP membership program. Customers were enticed with discounted pricing but faced a monthly fee of $49.95 unless they actively opted out each month. The retailer is also accused of misrepresenting prices, automatically enrolling customers without consent, and complicating the cancellation process.
As part of the settlement, North Carolina will receive $197,552 in restitution for its consumers. A total of 87 customers will automatically receive refunds. Other affected individuals must file a complaint with the North Carolina Department of Justice by January 30, 2026, to be eligible for their refunds.
The settlement mandates TFG to enhance its consent processes, ensure transparency regarding VIP program terms, cease automatic recurring charges, and simplify cancellation mechanisms.
“This money will help refund customers who were misled by these companies,” Jackson stated in a press release. “If you had a bad experience with any of these brands, please file a complaint with our office.”
This urgent legal action is part of a broader effort to protect consumers from misleading marketing practices in the digital retail space. North Carolina’s proactive stance highlights the importance of accountability among online retailers and serves as a warning for others in the industry.
As developments unfold, affected customers are encouraged to stay informed and take action to claim their rightful refunds. The implications of this settlement extend beyond North Carolina, signaling a growing trend among state officials to combat deceptive marketing practices.
