Michigan Attorney General Dana Nessel announced a $1 million settlement with TFG Holding, Inc., the parent company of JustFab, ShoeDazzle, and FabKids, over allegations of deceptive advertising and billing practices in their VIP Membership Program. The program promised discounts but automatically enrolled consumers in a $49.95 monthly subscription, often triggered without clear consent and difficult to cancel, according to the Department of Attorney General.
The settlement addresses violations of consumer protection laws, including inadequate disclosure of automatic enrollment and obstacles to cancellation. Nessel emphasized, "Consumers deserve clear information about the memberships they sign up for, and they should be able to cancel and stop paying for ones they didn’t mean to buy or just don’t want anymore," as reported by the Department of Attorney General.
TFG Holding must change its business practices under the settlement. The company must clearly explain the VIP Membership Program terms and get consumers’ consent before enrollment. It must allow online cancellations, honor all cancellation requests without extra charges, issue refunds to some consumers, and stop charges for those enrolled before a certain date. Consumers who believe they were wrongly charged can file complaints within 90 days. The settlement involves Michigan and requires TFG Holding to pay $1 million for investigative costs and future consumer protections, as stated by the Department of Attorney General.
