HARRISBURG, PA — Attorney General Dave Sunday announced a $4.8 million multistate settlement with TFG Holding, Inc., the parent company behind online fashion brands JustFab, ShoeDazzle, and FabKids. The agreement resolves allegations that the retailer used deceptive marketing tactics to enroll customers in recurring membership programs and made cancellation unnecessarily difficult.
Under the terms of the settlement, TFG Holding will provide $3.8 million in automatic refunds to consumers nationwide and pay $1 million in investigative costs to participating states. Pennsylvania will receive $141,250 of that amount, with more than $300,000 in refunds designated for affected state residents. Consumers who believe they were improperly charged have until January 21, 2026, to file a complaint with the Attorney General’s Bureau of Consumer Protection to be considered for restitution.
“Companies cannot enroll consumers into costly subscription programs without their plain and clear consent,” Attorney General Sunday said. “This settlement will enable hundreds of Pennsylvanians who were misled into these seemingly never-ending subscription charges to be free of those financial obligations and recover their payments.”
The case centered on TFG Holding’s VIP Membership Program, which offered discounted pricing on apparel and footwear in exchange for a monthly subscription fee. Consumers were charged unless they made a purchase, canceled before the sixth of the month, or logged in to skip a payment. Unused fees accumulated as store credits, but many consumers said they were unaware of the recurring charges or struggled to cancel.
Investigators alleged that TFG Holding violated consumer protection laws by automatically enrolling shoppers without explicit consent, misrepresenting product prices, using misleading countdown timers to create false urgency, and employing cancellation processes that were intentionally burdensome.
As part of the agreement, TFG Holding must clearly disclose all membership terms, obtain express consent before enrolling customers, provide an easy online cancellation option, and promptly process all refund requests. The company is also prohibited from implying that sales are time-limited unless they truly are.
Automatic refunds will be issued to consumers who joined the VIP program before May 31, 2016, made only an initial purchase, and never skipped a payment or redeemed credits. Consumers with unresolved complaints—or those filing new claims within 90 days of the settlement’s effective date—will also be eligible for restitution.
The settlement was led by Pennsylvania in coordination with attorneys general from Maryland, Texas, and the District of Columbia, with additional participation from more than 30 other states, including New Jersey, Ohio, and Massachusetts. Senior Deputy Attorney General Amy L. Shulman filed the agreement in the Court of Common Pleas of Allegheny County.
Consumers who believe they were affected can contact the Bureau of Consumer Protection at 717-787-3391, email scams@attorneygeneral.gov, or file a complaint online at attorneygeneral.gov.
The settlement does not constitute an admission of wrongdoing by TFG Holding.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.