These days, it’s common for people to subscribe to various memberships, whether for clothing stores, bookstores, Netflix, HBO, or any other similar platform. But there are other times when people end up with these memberships because the app itself forces them to. Shoppers are suing JustFab and ShoeDazzle primarily for deceptive marketing and billing practices, including automatic enrollment in VIP membership programs and difficulty canceling subscriptions. This is something that, incidentally, has recently happened with Amazon and some Prime users.
Customers are faced with lengthy customer service processes designed to discourage cancellation
The lawsuit was filed after numerous consumers reported difficulties canceling their subscriptions. TFG Holdings, the apparel company that owns brands like JustFab, ShoeDazzle, and FabKids, has been accused of misleading customers regarding its VIP memberships. Customers are faced with lengthy customer service processes designed to discourage cancellation, and their cancellation emails are not processed, leading to continued billing.
The plaintiffs in the case argued that TFG Holdings automatically enrolled its customers in its VIP rewards program
The issue is that information about membership and monthly cost wasn’t always presented clearly during the purchase process, which is where the confusion for consumers arose. The plaintiffs in the case argued that TFG Holdings automatically enrolled its customers in its VIP rewards program, often without their permission or knowledge. According to experts, the website’s user section design is described as having a “dark pattern” intended to deceive users. Under the settlement, this membership cost $4.65 per month unless canceled, and the cancellation process was deliberately complicated, as explained above.
A payment will be automatically sent to shoppers in 33 states as part of a $4.8 million out-of-court settlement
Under the terms of the settlement, the company has committed to issuing automatic refunds, totaling approximately $3.8 million, to eligible consumers and paying $1 million in costs to participating states. The settlement benefits U.S. shoppers who enrolled in a JustFab, ShoeDazzle, or FabKids VIP program before May 31, 2016. A payment will be automatically sent to shoppers in 33 states as part of a $4.8 million out-of-court settlement in a class-action lawsuit. However, they may still be charged even if they made subsequent purchases, skipped payments, or redeemed credits through the program.
Those who made an initial purchase and took no further action will receive an automatic refund
Each case is different, so before filing a claim, be sure to review the dates and key points of the lawsuit. Those who made an initial purchase and took no further action will receive an automatic refund under the settlement. Specifically, the settlement applies to residents of the District of Columbia, as well as those in Massachusetts, New Hampshire, Tennessee, Texas, Wisconsin, New Mexico, and other states.
It is also important for consumers to note that additional refund requests for consumers with eligible unresolved complaints must be emailed to TFGHoldingResolutions@jfbrands.com or to the attorney general’s office of a participating state by January 30, 2026. On the one hand, it is not yet known exactly how much each person will receive, and on the other hand, TFG Holdings has not admitted any wrongdoing, although it has agreed to pay to settle the claims filed against it.
Commit to consumer protection laws in all participating states
In addition to the payment, and despite or acknowledging the ‘error’, the company has committed to comply with consumer protection laws in all participating states; to obtain express consent from consumers before enrolling them in the program; end misleading sales tactics, such as false or time-sensitive offers; provide a simple online cancellation process and promptly honor all cancellation requests; clearly disclose all terms of its VIP program, including any fees, enrollment details, and cancellation rights; and issue refunds for certain recurring charge balances from the past year.
