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A $1 million multistate settlement has been reached with TFG Holding, owner of online fashion brands JustFab, ShoeDazzle and FabKids.
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The company was accused of misleading consumers and making it difficult to cancel memberships to its “VIP” program.
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The settlement requires TFG to improve transparency, simplify cancellations and provide refunds to affected consumers.
A coalition of 33 attorneys general has reached a $1 million settlement with Louisiana-based TFG Holding, the parent company of popular online fashion brands JustFab, ShoeDazzle and FabKids.
The settlement resolves allegations that the company misled consumers and violated state consumer protection laws through its marketing of a “VIP Membership Program.”
“Bad business practices are never in style,” said Ohio Attorney General Dave Yost. “Consumers should be able to trust what they’re signing up for, not get snagged in a membership scheme.”
The allegations
The states alleged that TFG Holding’s VIP Membership Program offered discounted prices, but came with a costly catch: members were charged $49.95 each month unless they made a purchase or logged in to “skip” the monthly charge by the sixth day of each month. Unused charges accumulated as store credits, often without customers realizing they were even enrolled in the program.
Investigators said they found that many consumers were automatically enrolled without consent after making a purchase, and that cancellation was intentionally complicated. The company also allegedly misrepresented prices on its websites and failed to clearly disclose that purchases would trigger recurring charges.
Terms of the settlement
Under the settlement, TFG Holding must now:
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Fully comply with consumer-protection laws across all participating states.
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Clearly disclose all VIP program terms, including fees, enrollment rules, and cancellation rights.
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Obtain express consent before enrolling any consumer.
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Stop using misleading sales tactics, such as fake time-sensitive offers.
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Offer a simple online cancellation process and honor all cancellation requests promptly.
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Provide refunds for certain recurring charge balances from the past year.
Refunds and restitution
Consumers who enrolled in the VIP program before May 31, 2016 will automatically stop being charged unless they’ve made later purchases, skipped payments, or redeemed credits. These consumers are also eligible for automatic restitution if they made only an initial purchase and never took further action in the program.
Additional refunds will be available for consumers who:
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Have unresolved eligible complaints, or
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File a written complaint within 90 days of the settlement’s effective date (January 30, 2026).
Eligible complaints may be submitted by email to TFGHoldingResolutions@jfbrands.com or to a participating state attorneys general’s office. TFG will distribute all restitution payments directly to affected customers.
The settlement underscores a growing push by state attorneys general to rein in “dark pattern” marketing practices, where companies design confusing or deceptive systems to trap consumers in recurring charges.
For shoppers enticed by flashy online deals, Yost’s message is simple: “Always read the fine print — and if a discount sounds too good to be true, it probably comes with strings attached.”
