Great Lakes Wire

Michigan Attorney General Dana Nessel has announced a $1 million multistate settlement with TFG Holding, Inc., an online retailer operating brands such as JustFab, ShoeDazzle, and FabKids. The agreement addresses allegations that the company used deceptive marketing tactics for its VIP Membership Program and made it difficult for consumers to cancel their memberships.

“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,” said Nessel. “My office remains committed to working with attorneys general across the country to protect residents from deceptive business practices.”

The VIP Membership Program offered by TFG Holding, Inc. provides discounted pricing in exchange for a monthly charge of $49.95 unless members make a purchase or log in to skip the fee before the sixth day of each month. These charges are accumulated as store credits for future use.

The settlement resolves claims that TFG Holding, Inc. misrepresented product prices on its websites, automatically enrolled customers into recurring membership charges without proper consent, maintained cancellation policies that hindered members’ ability to end their subscriptions, and did not fully disclose key details about membership enrollment when products were purchased.

Under the settlement terms, TFG Holding, Inc. must comply with relevant laws and clearly disclose all material terms of its VIP Membership Program—including enrollment details, recurring charges, and cancellation rights. The company is also prohibited from advertising offers as time-sensitive unless they genuinely are and must obtain explicit consent from consumers before enrolling them in any membership program.

Additionally, TFG Holding is required to offer a straightforward online process for cancelling memberships and promptly process such requests. Customers can also request refunds on recurring charges accrued within the previous year. For those who joined the program before May 31, 2016—and have not skipped payments or made further purchases—the company will cease billing unless specific actions were previously taken by those customers.

Restitution will be provided automatically to eligible early enrollees who only made an initial purchase without additional transactions or skipped payments. Consumers with unresolved complaints against the company—or who file new written complaints within 90 days of the settlement’s effective date—may also qualify for restitution.

The $1 million payment by TFG Holding will go toward covering investigative costs or future consumer protection efforts in participating jurisdictions.

Negotiations involved attorneys general from several states including the District of Columbia, Pennsylvania, Maryland, Texas, Michigan, Alabama, Arkansas, Colorado, Connecticut, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, North Carolina, North Dakota, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Vermont, Washington and Wisconsin.