MARYLAND (WBFF) — Attorney General Anthony Brown has announced a multistate settlement with TFG Holding, Inc., an online clothing retailer accused of deceptive advertising and billing practices.
The settlement addresses claims that TFG used negative option marketing to enroll consumers into its VIP Membership Program without their informed consent, making it difficult for them to cancel. TFG allegedly offered discounts on its brands' websites, including JustFab, ShoeDazzle, and FabKids, without clearly informing consumers that accepting the discount would enroll them in a $49.95 monthly membership.
"Marylanders deserve to know exactly what they’re paying for when they make a purchase online – not to be trapped paying costly monthly charges they never agreed to," said Attorney General Brown, via a press release. The settlement provides refunds to affected consumers and establishes standards to prevent future deceptive practices.
TFG is required to comply with all relevant laws, clearly disclose membership terms, obtain informed consent before enrollment, and provide a simple cancellation mechanism. The company will also offer refunds for charges accrued within the past year and cease billing for memberships enrolled before May 31, 2016, unless used.
TFG has agreed to pay $1 million to the attorneys general involved in the settlement, which includes representatives from 34 states and the District of Columbia.
Consumers with existing complaints can contact TFG via email at TFGHoldingResolutions@jfbrands.com or call the Consumer Protection Division at 410-528-8662 for questions about the restitution program.