Kim Kardashian's SKIMS to pay $200,000 fine over fraud allegations

"Skims' unconscionable business practices meant that the company did not have a system in place to shield New Jersey consumers buying online from being charged sales tax, the AG's office said. Kardashian founded the body-positive apparel and skin care company in 2019, so those practices were in place from the get-go, according to authorities. Celebs from Kim Cattrall to Anthony Hopkins have swanned or snickered in the reality star's shapewear, slimming face masks and even a bra with a built-in nipple."

""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 said in a statement. 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.""

"In addition to the penalty, Skims has already returned the errant tax money to the New Jersey Division of Taxation and is tracking down consumers who may have paid the tax in error so it can reimburse them. The company has also agreed to fix its processes so it won't happen again. Skims will keep the case open for four years so as to facilitate and complete further consumer refund requests, the DA"

Skims charged New Jersey sales tax on everyday clothing and footwear that state law exempts, applying the tax to online purchases from 2019 through 2024 and violating the Consumer Fraud Act. The company's systems lacked protections to prevent charging tax to New Jersey customers, and those practices dated to the company's 2019 founding. Skims has paid a $200,000 civil penalty, returned the collected tax to the New Jersey Division of Taxation, and is identifying consumers who may have been overcharged to reimburse them. The company agreed to fix processes and will keep the case open for four years to complete refund requests.

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