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Kim Kardashian’s style model should pay $200,000 to settle allegations that it overcharged clients over a five-year interval.
The Hollywood-based loungewear and shapewear model Skims Physique improperly charged New Jersey clients gross sales tax from 2019 by 2024 despite the fact that most garments are exempt within the state, New Jersey Atty. Gen. Matthew Platkin and the state’s Division of Shopper Affairs introduced in a assertion Tuesday.
A spokesperson for the corporate mentioned in an e-mail {that a} “technical error” in its gross sales tax assortment system was in charge. The issue has since been fastened, based on the spokesperson.
The lawyer normal’s workplace mentioned that Skims had engaged in “unconscionable enterprise practices.”
“We’re holding Skims accountable as a result of their conduct harmed New Jersey customers by requiring them to pay greater than what they owed. We gained’t tolerate conduct that unlawfully takes cash out of the pockets of hard-working New Jerseyans,” Platkin mentioned within the assertion.
Skims mentioned within the assertion that the error was inadvertent.
Skims has reached out to affected clients to offer full refunds of any “over-collected quantities,” based on its assertion.
New Jersey clients have complained about the issue on-line and to the corporate in regards to the problem as early as 2021, based on posts on Reddit about Skims.
The state’s client affairs division started investigating Skims’ practices after somebody submitted a grievance in early 2024, based on the consent order resolving the fraud allegations filed on Jan. 16.
Underneath the settlement, Skims will likely be required to, for the subsequent 4 years, “use finest efforts” to refund clients who have been overcharged gross sales taxes on their merchandise in a “moderately well timed method.”
“We stay deeply dedicated to the very best requirements of compliance and have carried out enhanced safeguards to forestall any recurrence of comparable points,” the assertion mentioned.
Skims, launched by Kardashian and Chief Government Jens Grede in 2019, started as a web based retailer however has since expanded to brick-and-mortar shops nationwide. Its Los Angeles flagship retailer opened in April 2025 in West Hollywood.
The privately held firm capitalizing on the athleisure pattern was valued at $5 billion in November.
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