Illinois Attorney General, Multistate Coalition Reach Settlement With Online Retailer Over Membership Charges

CHICAGO — Illinois Attorney General Kwame Raoul and a coalition of 33 states reached a settlement with online clothing retailer TFG Holding Inc., which operates brands including JustFab, ShoeDazzle and FabKids, over deceptive marketing and billing practices for its VIP Membership Program. The settlement requires TFG Holding to provide restitution to consumers who were enrolled without proper disclosure, pay $1 million to states for investigative costs, and implement changes to clearly disclose membership terms, obtain consent before enrollment, simplify cancellation, and stop misleading time-limited offers. Consumers who enrolled prior to May 31, 2016, and meet certain criteria will receive automatic refunds, and others can file complaints within 90 days to receive restitution.