JustFab, ShoeDazzle Parent Company Settles Deceptive Pricing Lawsuit in Minnesota

(KNSI) — Minnesota’s Attorney General’s Office announced a settlement with the company behind JustFab, ShoeDazzle, and FabKids over deceptive business practices involving hidden fees and a problematic membership program.

Court papers say TFG Holding, Inc. allegedly advertised one price in Minnesota stores but added a 3.75% to 5.25% “tariff” surcharge at checkout. The company’s VIP Membership Program charged $49.95 monthly unless customers made a purchase or logged in to skip the charge by the sixth of each month. TFG also auto-enrolled people without proper consent, misrepresented prices, made cancellation difficult, and didn’t clearly disclose that buying products meant joining the membership.

Under the settlement, TFG must clearly disclose membership terms, get express consent before enrollment, provide easy online cancellation, and offer refunds for charges from the past year. The company will automatically refund certain early members who only made one purchase and will handle unresolved complaints. TFG is paying $1 million to 33 investigating states and jurisdictions, including $15,000 to Minnesota.

While TFG can’t refund individual customers for the tariff fees, the company is paying $331,933.72 into the Consumer Protection Restitution Account, a new state fund designed to help fraud victims when companies can’t make them whole.

Starting in 2025, Minnesota law requires retailers to include all mandatory fees in advertised prices, though TFG’s conduct predated this specific law.

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