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AG Yost Secures Consumer Restitution Over Online Clothing Retailer’s Deceptive Practices

(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost and 32 other attorneys general today announced a $1 million multistate settlement with an online fashion retailer that deceptively marketed its VIP Membership Program and made it difficult for consumers to cancel memberships.

The settlement alleges that Louisiana-based TFG Holding– whose brands include JustFab, ShoeDazzle and FabKids – violated consumer protection laws.

“Bad business practices are never in style,” Yost said. “Consumers should be able to trust what they’re signing up for, not get snagged in a membership scheme.”

TFG Holding offered discounted prices to consumers enrolled in its VIP Membership Program, with members charged $49.95 a month unless they made a purchase in that month or logged into their accounts by the sixth day of the month to “skip” the monthly charge. If consumers did not make a purchase or skip, the charges accrued as store credits for future purchases. 

Some consumers were unaware that they were even enrolled in the program.

The settlement alleges that TFG Holding violated consumer protection laws by:

  • Misrepresenting on its websites the prices that consumers could expect to pay for products advertised.
  • Automatically enrolling consumers, without their consent, into the membership program, which – without consumers’ knowledge, consent or authorization – included a recurring charge.
  • Maintaining cancellation policies and practices that frustrated consumers’ ability to cancel memberships.
  • Failing to adequately disclose material facts to consumers, including the fact that a purchase automatically enrolled them into the VIP program.
Under the terms of the settlement, TFG Holding must:
  • Comply with all applicable consumer-protections laws.
  • Clearly and conspicuously disclose the material terms of its VIP program, including enrollment qualifications, the amount and frequency of all applicable recurring charges, and the consumer’s right to cancel.
  • Refrain from representing offers or sales of its products as time-sensitive unless they are.
  • Obtain a consumer’s express informed consent before enrolling that consumer in the VIP program.
  • Provide a simple online mechanism for consumers to cancel their membership, promptly accept and process any request to cancel a membership, and stop the payment billing/collecting for any recurring charge.
  • Provide all consumers the opportunity to obtain a refund of any recurring charge balance accrued in the past year.
What consumers need to know

As part of the settlement, the company must stop assessing recurring charges to any consumer who enrolled in its VIP Membership Program before May 31, 2016, unless the consumer previously skipped a payment, redeemed a credit, received a refund or made an additional purchase.  The company will also provide automatic restitution to all consumers who enrolled before that date and made only an initial purchase and never skipped a payment.

Additionally, restitution will be paid to consumers with unresolved eligible complaints and to customers who file an eligible written complaint with the company by email to TFGHoldingResolutions@jfbrands.com or the Attorney General’s Office within 90 days of the effective date of the settlement (January 30, 2026). The company will be distributing all eligible restitution payments.

If you believe you have been taken advantage of by TFG Holding – or by another unfair or deceptive business practice – contact the Ohio Attorney General’s Office at www.OhioProtects.org or 800-282-0515.

MEDIA CONTACT:
Hannah Hundley: 614-906-9113

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