URGENT UPDATE: North Carolina has just secured a significant $4.8 million multistate settlement with TFG Holding, Inc., the parent company of popular online brands such as JustFab, ShoeDazzle, and FabKids. This settlement comes in response to allegations of deceptive marketing practices that misled consumers about membership charges.
Attorney General Jeff Jackson announced the news on Tuesday, detailing that the lawsuit was a collaborative effort involving 33 state attorneys general. The investigation revealed that TFG engaged in unfair practices, including misleading pricing and automatic VIP membership enrollments without customer consent. Customers were often required to log in monthly to avoid a hefty $49.95 fee, complicating the cancellation process and leading to unexpected charges.
In an immediate impact for North Carolina consumers, the state will receive $197,552 in restitution. Affected individuals will see financial relief, with 87 customers set to receive automatic refunds. Those who experienced issues with the VIP membership must file a complaint with the North Carolina Department of Justice by January 30, 2026, to qualify for refunds.
The settlement mandates that TFG take critical steps to ensure transparency in their marketing practices. This includes obtaining explicit consent from customers before enrolling them in any programs and simplifying cancellation procedures for their VIP memberships.
Jackson emphasized the importance of this settlement, stating,
“The money we won back will help refund customers who were misled by these companies. If you had a bad experience with any of these brands, please file a complaint with our office.”
This development not only restores trust but also serves as a reminder to consumers of their rights in the e-commerce landscape.
As this story develops, North Carolinians are urged to stay vigilant and informed about their rights regarding online purchases. For those affected, filing complaints can lead to potential refunds and help others avoid similar experiences. Share this update to raise awareness about consumer rights and the importance of transparency in online retail.
