Attorney General Matthew J. Platkin and the Division of Consumer Affairs (“Division”) announced today that Skims Body, Inc. (“Skims”), an online apparel company, has agreed to pay a $200,000 civil penalty to resolve allegations the company violated New Jersey’s consumer protection laws by collecting sales tax on tax-exempt clothing sold to New Jersey consumers.
Under New Jersey’s tax laws, everyday clothing and footwear are exempt from sales tax. A Division investigation found that Skims, which was founded by celebrity Kim Kardashian, improperly collected sales tax from New Jersey customers from 2019 through 2024. The Division’s investigation alleged that this practice violated New Jersey’s Consumer Fraud Act (“CFA”).
“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 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 Division alleges that from 2019 through 2024, Skims engaged in unconscionable business practices by collecting sales tax on tax-exempt items and failing to ensure that New Jersey consumers were not charged sales tax on tax-exempt merchandise. To resolve the allegations, Skims—which has already remitted the improperly collected sales tax to the New Jersey Division of Taxation and taken steps to identify and reimburse impacted consumers—agreed to pay a civil penalty and implement reforms to prevent future violations of the CFA.
“The Division takes seriously unlawful practices that negatively impact purchases of essential items for consumers,” said Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs. “This settlement holds Skims accountable for the harms it caused New Jersey customers and helps protect consumers from future harm.”
In a Consent Order filed with the Division, Skims agreed to immediately pay a $200,000 civil penalty and comply with all applicable state and federal laws, rules, and regulations, including the CFA. Additionally, under the terms of the Consent Order, Skims will continue to implement and maintain systems and procedures to ensure that New Jersey consumers are not charged sales tax on tax-exempt merchandise in accordance with the New Jersey Sales and Use Tax Act. And for the next four years, Skims will use its best efforts to facilitate and complete any additional consumer requests for refunds in a reasonably timely manner.
The investigation was conducted by Investigator Aziza Salikhova, under the supervision of Gregory Turner, Assistant Deputy of Enforcement within the Division’s Office of Consumer Protection. The State was represented in the matter by Deputy Attorney General Mehnaz Rahim, Deputy Attorney General/Assistant Section Chief Monisha Kumar, and Deputy Attorney General/Section Chief Jesse J. Sierant of the Consumer Fraud Prosecution Section within the Division of Law.