What's Happening?
TFG Holding, a Louisiana-based company operating brands such as JustFab, ShoeDazzle, and FabKids, has been ordered to pay a $1 million settlement following allegations of deceptive marketing practices.
The settlement was announced by 33 attorneys general, including Ohio Attorney General Dave Yost. The company was accused of misleading consumers about the terms of its VIP Membership Program, which offered discounted prices but charged members $49.95 monthly unless they made a purchase or logged in to skip the charge by the sixth day of the month. Many consumers were reportedly unaware of their enrollment in this program. The settlement mandates that TFG Holding comply with consumer protection laws, clearly disclose the terms of its VIP program, and provide a straightforward online mechanism for membership cancellation. Consumers who enrolled before May 31, 2016, and meet specific criteria will receive automatic restitution.
Why It's Important?
This settlement highlights the importance of transparency in consumer marketing practices, particularly in subscription-based models. The case underscores the need for companies to clearly communicate terms and conditions to avoid misleading consumers. The outcome serves as a warning to other businesses employing similar practices, emphasizing the legal and financial repercussions of violating consumer protection laws. For consumers, this settlement provides a pathway to restitution and reinforces their rights to clear and honest information when engaging in membership programs. The involvement of multiple state attorneys general indicates a broad concern over consumer rights and the enforcement of fair business practices across the U.S.
What's Next?
Affected consumers are encouraged to contact the Ohio Attorney General’s Office for assistance. Those with unresolved complaints can file an eligible written complaint with TFG Holding or the Attorney General’s Office within 90 days of the settlement’s effective date, January 30, 2026, to receive restitution. The settlement also requires TFG Holding to implement changes to its business practices, which may lead to increased scrutiny and potential adjustments in how similar companies operate their membership programs.
