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Online clothing company ordered to pay $1M settlement; Who’s eligible for payment

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OHIO — 33 attorneys general recently announced a $1 million settlement with an online clothing company over alleged deceptive marketing practices.

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The settlement claims that TFG Holding, based in Louisiana and operating brands such as JustFab, ShoeDazzle, and FabKids, violated consumer protection laws.

A spokesperson with Ohio Attorney General Dave Yost’s office said the company misled consumers about membership terms and made it difficult to cancel memberships.

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“Bad business practices are never in style,” Yost said. “Consumers should be able to trust what they’re signing up for, not get snagged in a membership scheme.”

TFG Holding’s VIP Membership Program offered discounted prices but charged members $49.95 monthly unless they made a purchase or logged in to skip the charge by the sixth day of the month, the spokesperson said.

Many consumers were unaware they were enrolled in this program.

The settlement requires the company to comply with consumer protection laws, clearly disclose the terms of its VIP program, and provide a simple online mechanism for membership cancellation.

Consumers who enrolled before May 31, 2016, and meet certain criteria, will receive automatic restitution, according to the spokesperson.

Shoppers with unresolved complaints can file an eligible written complaint with TFG Holding or the Attorney General’s Office within 90 days of the settlement’s effective date, Jan. 30, 2026, to receive restitution.

Those affected are encouraged to contact the Ohio Attorney General’s Office for assistance.

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