SKIMS to pay 0,000 fine in New Jersey over fraud allegations.
Kim Kardashian’s Skims Body Inc. has agreed to pay a civil penalty of 0,000 to resolve allegations of consumer fraud related to the improper collection of sales tax from New Jersey customers. The New Jersey Attorney General’s office announced this settlement, which addresses the company’s practice of charging sales tax on clothing items that are exempt under state law.
According to New Jersey regulations, everyday clothing and footwear purchases are not subject to sales tax. However, it has been revealed that Skims collected sales tax on items that fall under this exemption from 2019 to 2024. This conduct is a violation of New Jersey’s Consumer Fraud Act, a situation highlighted by Attorney General Matthew Platkin and the state’s Division of Consumer Affairs.
The Attorney General’s office criticized Skims for its lack of proper systems to prevent New Jersey consumers from being overcharged. This mismanagement of tax practices reportedly led to consumers being subjected to unjust charges, a situation the AG’s office described as “unconscionable business practices.”
Founded in 2019, Skims is a body-positive clothing brand that has gained significant attention for its innovative shapewear products and extensive marketing efforts featuring various celebrities. Notables from Kim Cattrall to Anthony Hopkins have endorsed the brand, signaling its influence in the fashion industry. The company’s growth trajectory has been substantial, rising to an estimated worth of billion by 2023 and reaching billion by late 2025. Kardashian, the founder, has been recognized as a billionaire by Forbes, showcasing the brand’s considerable financial success.
In a statement, Attorney General Platkin emphasized the commitment to safeguarding consumers from unlawful business practices, particularly during a time of rising prices across various sectors, including clothing and groceries. He noted that Skims’ actions resulted in unnecessary financial burdens for New Jersey residents and affirmed that the state will hold companies accountable for harming consumers.
In conjunction with the financial penalty, Skims has initiated the process of refunding any erroneously collected sales tax to the New Jersey Division of Taxation. The company is actively working to identify affected customers to provide reimbursements. Furthermore, Skims has pledged to implement revised procedures to prevent similar issues in the future. The settlement allows for a four-year period to ensure all consumer refund requests are duly addressed.
As of now, Skims has not responded to requests for comment regarding the settlement and its future plans. The ongoing case represents a significant moment for consumer rights and business accountability in the e-commerce landscape.
