New Jersey consumers will soon see relief after a major shapewear and apparel company co-founded by Kim Kardashian agreed to pay $200,000 to resolve allegations of charging sales tax on clothing that is legally tax-exempt in the state. The settlement, announced January 20, addresses claims that the Los Angeles-based brand improperly collected taxes from New Jersey shoppers over a five-year period.
Outgoing New Jersey Attorney General Matthew Platkin stated that the investigation, conducted by the state Division of Consumer Affairs, found that Skims failed to ensure customers were not charged sales tax on qualifying merchandise between 2019 and 2024. The oversight meant that shoppers were paying more than legally required for items that should have been tax-free, prompting the state to intervene.
Under the terms of a consent order, Skims has agreed to implement a series of internal reforms designed to prevent similar violations in the future. These reforms include enhanced training for staff, improved point-of-sale systems to correctly flag tax-exempt items, and a comprehensive auditing process to ensure compliance with the New Jersey Consumer Fraud Act.
The company has already remitted the improperly collected funds to the New Jersey Division of Taxation. In addition, Skims has begun identifying and reimbursing affected customers, though state officials have not disclosed the total number of shoppers impacted. According to Platkin, the company is also committed to facilitating consumer refund requests over the next four years and has pledged to respond to such claims in a timely manner.
“We are holding Skims accountable because their conduct harmed New Jersey consumers by requiring them to pay more than what they legally owed,” Platkin said. “We will not tolerate actions that unlawfully take money from the pockets of hardworking New Jerseyans.”
Elizabeth Harris, who serves as acting director of the Division of Consumer Affairs, emphasized the importance of protecting consumers from unlawful practices. “The Division takes seriously any actions that negatively affect the purchase of essential items,” Harris said. “This settlement holds Skims accountable and ensures that consumers are protected from future violations.”
The settlement comes at a time of leadership transition within New Jersey’s legal offices. Jennifer Davenport is currently serving as acting attorney general following the swearing-in of Governor Mikie Sherrill, while Harris continues in her acting role until the state Senate confirms permanent appointments.
Although Skims has not publicly commented on the settlement, the agreement signals a broader commitment to regulatory compliance and consumer protection. For New Jersey shoppers, the resolution offers reassurance that businesses are being monitored and held responsible for misapplied taxes. Moving forward, the case serves as a reminder for both companies and consumers to remain vigilant about tax-exempt purchases and ensure proper procedures are followed at the point of sale.
This case also underscores the role of the Division of Consumer Affairs in overseeing corporate practices and enforcing compliance under the state’s law and order framework, reinforcing public confidence in New Jersey’s regulatory oversight and consumer protections.
