UPDATE: North Carolina has just secured a staggering $4.8 million multistate settlement with TFG Holding, Inc., the parent company of popular online retailers JustFab, ShoeDazzle, and FabKids, amid allegations of deceptive marketing practices. Attorney General Jeff Jackson announced the settlement earlier today, emphasizing the urgent need for consumer protection.
The lawsuit, involving a coalition of 33 attorneys general, contends that TFG misled customers by promoting discounted prices while mandating enrollment in a VIP membership program. Customers were required to log in monthly to avoid a $49.95 charge, which many found difficult to cancel. The accusations also include misrepresentation of prices and automatic enrollment without consent, raising significant concerns over consumer rights.
As a result of this settlement, North Carolina will receive $197,552 in restitution for affected consumers. Notably, 87 customers will receive automatic refunds, while others must file complaints with the North Carolina Department of Justice by January 30, 2026, to seek their refunds.
In his statement, Jackson highlighted the importance of the settlement, declaring, “The money we won back will help refund customers who were misled by these companies.” He urged consumers who had negative experiences with these brands to take action by filing complaints with his office.
The settlement mandates TFG to implement stricter measures for obtaining customer consent, ensuring transparency regarding the VIP program’s terms, ceasing recurring billing practices, and streamlining cancellation processes for consumers. This move aims to protect future customers from similar misleading practices.
This urgent development underscores the ongoing battle against deceptive marketing in the online retail space and showcases the power of collective action by state attorneys general. North Carolina residents who believe they have been affected by TFG’s practices are encouraged to act quickly to secure their refunds and hold these companies accountable.
Stay tuned for further updates as this situation develops. The implications of this settlement could resonate widely among consumers navigating online retail landscapes.
