Kim Kardashian’s fashion brand SKIMS has been hit with a hefty civil penalty for allegedly violating New Jersey’s consumer protection laws. The online retailer was accused of collecting sales tax on tax-exempt clothing items sold to customers in the state.
An investigation found that from 2019 to 2024, SKIMS improperly collected sales tax on items that should have been exempt. This violation of New Jersey’s Consumer Fraud Act was described as ‘unconscionable.’
Former state Attorney General Matthew J. Platkin announced the news just before his successor, Acting Attorney General Jennifer Davenport, took office. The settlement against SKIMS sends a strong message that businesses cannot get away with overcharging consumers.
“As prices on everything from clothing to groceries soar, our office is committed to protecting our residents from unlawful practices that drive up the prices they pay at the register,” Platkin stated. “We’re holding SKIMS accountable because their conduct harmed New Jersey consumers by requiring them to pay more than what they owed.”
SKIMS has agreed to a $200,000 civil penalty and is working to identify affected consumers in order to provide refunds. The brand is also making efforts to prevent similar violations in the future.
In the world of fashion, SKIMS’ misstep is a reminder of the importance of ethical business practices and transparency in the industry. As consumers become increasingly conscious of the brands they support, maintaining trust and integrity is crucial for success.
This recent incident underscores the need for continued vigilance and compliance with regulations to protect consumers and uphold ethical standards in the fashion industry. As SKIMS works to rectify its mistake, the brand serves as a cautionary tale for others in the industry to prioritize integrity and honesty in their business practices.
Peace Nero is a writer and blogger who loves to explore different topics of self-development. She shares her personal experiences in order to help people discover their true purpose in life.