SKIMS to pay 0,000 fine due to allegations of fraud in New Jersey.
Kim Kardashian’s apparel and shapewear company, Skims Body Inc., will pay a substantial civil penalty of 0,000 in order to resolve allegations of consumer fraud linked to the improper collection of sales tax from New Jersey residents. The settlement comes after investigations revealed that Skims charged sales tax on items that are exempt from such taxation under New Jersey law, specifically regarding clothing and footwear, during the period from 2019 to 2024.
New Jersey’s tax regulations distinctly exempt everyday clothing and footwear from sales tax, a fact that the state’s Attorney General, Matthew Platkin, highlighted in a joint announcement with the Division of Consumer Affairs. The AG’s office characterized Skims’ practices as “unconscionable,” noting that the company lacked adequate systems to prevent New Jersey consumers from being overcharged for sales tax when making online purchases.
The allegations indicate that these improper practices were established since Skims was founded in 2019 by Kardashian. Since its inception, the company has catered to a diverse range of customers with body-positive apparel and has gained a notable celebrity following, featuring endorsements from figures like Kim Cattrall and Anthony Hopkins.
Kardashian’s business has shown remarkable growth, with a reported valuation soaring to billion in 2023 and rising further to billion by late 2025. This meteoric rise has contributed to Kardashian’s financial status, positioning her as a billionaire multiple times over, as cited by Forbes.
Attorney General Platkin emphasized the ongoing commitment to safeguarding consumers in New Jersey, particularly during a period when prices for essential goods continue to rise. The AG stated that Skims’ conduct unjustly inflated the cost for consumers, an action that their office intends to prevent in the future.
In addition to the civil penalty, Skims has reportedly returned the incorrectly collected sales tax to the state and is actively working to refund consumers affected by the overcharges. The company has also agreed to implement changes to its sales tax practices to ensure compliance with state laws moving forward. The Division of Consumer Affairs indicated that the case will remain open for four years to facilitate additional consumer refunds and ensure that all claims are thoroughly addressed.
For more information on Skims and its offerings, interested parties can visit the company’s official website.
