Skims Body, Inc., an online apparel retailer founded by Kim Kardashian, has agreed to pay a $200,000 civil penalty following allegations that it violated New Jersey’s consumer protection laws. The company was accused of improperly collecting sales tax on clothing purchases that should have been exempt under state law.
According to the New Jersey Division of Consumer Affairs, Skims collected sales tax from customers in New Jersey between 2019 and 2024 on items such as everyday clothing and footwear, which are not subject to sales tax in the state. The Division alleges this practice violated the Consumer Fraud Act.
“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,” said Attorney General Matthew J. Platkin. “We’re holding Skims accountable because their conduct harmed New Jersey consumers by requiring them to pay more than what they owed. We won’t tolerate conduct that unlawfully takes money out of the pockets of hard-working New Jerseyans.”
The settlement requires Skims to pay a civil penalty and take steps to prevent future violations. The company has already returned the improperly collected taxes to the state’s Division of Taxation and begun identifying and reimbursing affected consumers.
Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs, stated: “The Division takes seriously unlawful practices that negatively impact purchases of essential items for consumers. This settlement holds Skims accountable for the harms it caused New Jersey customers and helps protect consumers from future harm.”
Under a Consent Order filed with the Division, Skims must immediately pay $200,000 and comply with all relevant laws and regulations. The company is also required to maintain systems ensuring no sales tax is charged on exempt merchandise sold in New Jersey and must continue processing refund requests for four years.
The investigation was conducted by Investigator Aziza Salikhova under Gregory Turner’s supervision at the Office of Consumer Protection. Deputy Attorneys General Mehnaz Rahim, Monisha Kumar, and Jesse J. Sierant represented the state in this matter.
The New Jersey Attorney General’s Office oversees legal enforcement across multiple areas in the state, including consumer protection efforts like those involved in this case.
