NC to receive nearly $200K after settlement with JustFab, other online retailers

RALEIGH, N.C. (WNCN) — North Carolina has reached a $4.8 million multistate settlement with an online clothing retailer over deceptive marketing practices, Attorney General Jeff Jackson said Tuesday.

According to the Office of the North Carolina Attorney General, the lawsuit was filed by 33 attorneys general, including Jackson, against TFG Holding, Inc., which includes the brands JustFab, ShoeDazzle, and FabKids.

The lawsuit alleges the retailer offered customers discounted pricing to enroll in the VIP membership program, but required customers to log in regularly each month to opt out of a monthly $49.95 charge. TFG is also accused of misrepresenting prices on its website, automatically enrolling people into the VIP program without consent, and making it difficult to cancel the VIP membership, according to the attorney general’s office.

The attorney general’s office said consumers in North Carolina will receive $197,552 in restitution.

According to the attorney general’s office, 87 customers will receive automatic refunds. Other customers who seek refunds must file a complaint with the North Carolina Department of Justice by Jan. 30, 2026.

The settlement also requires TFG to take more action to get consent from customers, make sure customers are aware of the terms of the VIP program, no longer bill recurring charges, and provide easier cancellations to customers.

“The money we won back will help refund customers who were misled by these companies,” Jackson said in a statement. “If you had a bad experience with any of these brands, please file a complaint with our office.”