Maryland Attorney General Secures Multistate Settlement with Online Retailer Behind ‘JustFab’ and ‘ShoeDazzle’

Maryland Attorney General Anthony G. Brown has announced a multistate settlement with TFG Holding, Inc. (TFG), an online clothing retailer operating under brands such as JustFab, ShoeDazzle, and FabKids. The settlement addresses allegations that the company engaged in deceptive advertising and billing practices by enrolling consumers into a VIP Membership Program without their full understanding and making it difficult to cancel.

According to the Maryland Attorney General’s office, TFG Holding, Inc. is accused of misleading consumers by offering discounts that automatically enrolled them into a VIP Membership Program. This program involved a recurring monthly charge of $49.95, which could only be used for future purchases on the company’s websites. The company allegedly failed to adequately disclose these terms, leading consumers to incur unexpected charges. These practices are alleged to have violated the Maryland Consumer Protection Act, with specific accusations including misrepresenting product prices, automatically enrolling consumers into recurring payment programs without consent, and implementing cancellation policies that hindered consumers’ ability to end their memberships.

Under the terms of the agreement, TFG Holding, Inc. is mandated to adhere to all relevant consumer protection laws and regulations. The company must now clearly and conspicuously present the material terms of its VIP Membership Program to consumers. This includes explicit disclosure of enrollment into the program, the exact amount and frequency of all recurring charges, and consumers’ rights to cancel. TFG is also prohibited from using deceptive marketing tactics, such as misleading countdown timers, to pressure consumers into purchases. To protect consumers moving forward, the company must obtain explicit, informed consent from customers before enrolling them in any VIP Membership Program.

Furthermore, TFG Holding, Inc. is required to provide a straightforward online process for consumers to cancel their VIP Memberships. The company must promptly honor all cancellation requests and cease further billing upon cancellation. Consumers who were enrolled in the VIP Membership Program prior to May 31, 2016, and have not utilized their membership, will no longer be billed for recurring charges. Additionally, all consumers will have the opportunity to request and receive a refund for any recurring charges accrued within the past year. The company will also address and resolve existing consumer complaints.

TFG Holdings has committed to paying $1 million to the Attorneys General’s offices that participated in the settlement. This resolution follows investigations and actions taken by attorneys general from numerous states, including Alabama, Arkansas, Connecticut, the District of Columbia, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Washington, and Wisconsin, in addition to Maryland. Consumers who have existing complaints with TFG can contact the company directly via email at TFGHoldingResolutions@jfbrands.com. For inquiries regarding the restitution program, consumers can contact the Consumer Protection Division at 410-528-8662.

Article by Mel Anara, based upon information from the Maryland Attorney General.

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