JustFab Settlement for Unfair and Deceptive Trade Practices
Summary
New Mexico Attorney General Raúl Torrez, alongside 34 other states, secured a $4.8 million settlement with online fashion retailer TechStyle, Inc. (JustFab). The settlement addresses allegations of unfair and deceptive trade practices, including misrepresenting prices, automatic enrollment in membership programs, and difficult cancellation policies. The company must reform its business practices and provide restitution to affected consumers.
What changed
New Mexico Attorney General Raúl Torrez, as part of a coalition of 34 state Attorneys General, has announced a $4.8 million multistate settlement with TechStyle, Inc. (operating as JustFab, Inc.). The settlement, structured as an Assurance of Discontinuance (AOD), resolves allegations of unfair and deceptive trade practices, including misrepresenting prices, automatically enrolling consumers into a VIP membership program without clear consent, imposing challenging cancellation policies, and failing to disclose material terms. The company is required to reform its business practices, such as obtaining express informed consent for membership enrollment, clearly disclosing all terms and recurring charges, and providing a simple online cancellation mechanism. The settlement also mandates restitution for affected consumers, with a total payout of $4.8 million distributed among the participating states based on consumer harm.
Affected consumers in New Mexico who meet specific criteria (e.g., enrolled before May 31, 2016, with only an initial purchase and no skipped payments, or those with unresolved complaints) will receive automatic restitution. Consumers who file a new eligible complaint within 90 days of the settlement's effective date (November 1, 2025) may also be eligible. Companies operating similar subscription or membership models should review their disclosure and cancellation policies to ensure compliance with the reformed practices, particularly regarding express consent, clear pricing, and accessible cancellation procedures. Failure to comply with the terms of the AOD could result in further enforcement actions.
What to do next
- Review JustFab's business practices for compliance with settlement terms.
- Ensure clear disclosure of membership terms, recurring charges, and cancellation rights.
- Provide a simple online mechanism for consumers to cancel VIP memberships.
Penalties
$4.8 million in restitution to affected consumers.
Source document (simplified)
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New Mexico Attorney General Raúl Torrez Announces $4.8 Million Multistate Settlement with Online Fashion Retailer JustFab for Alleged Unfair and Deceptive Trade Practices
- October 24, 2025
Albuquerque, NM – Attorney General Raúl Torrez, alongside a coalition of 34 attorneys general, secured a settlement for New Mexicans who reported being unwillingly or unknowingly charged thousands of dollars on average by TechStyle, Inc. (TFG), also known as JustFab, Inc. Allegations centered around the company misrepresenting prices, automatically enrolling consumers into membership programs, implementing and maintaining challenging cancellation policies and failing to disclose information to consumers.
The settlement, an Assurance of Discontinuance (AOD), stipulates that TFG/JustFab must reform specific business practices, as well as pay restitution in the amount of $4.8 million to affected parties. New Mexicans currently known to be affected by TFG/JustFab’s business practices will be reimbursed based on their harm.
“My office is committed to getting money back into the hands of New Mexicans who were overcharged or misled by corporate practices,” said Attorney General Raúl Torrez. “This settlement not only provides restitution to affected consumers but also forces TechStyle to change how it does business—ensuring greater transparency, fairness, and accountability moving forward.”
TFG, which includes brands JustFab, Shoe Dazzle and FabKids, is an online fashion retailer that offers discounted purchases and other incentives to consumers who enroll in their VIP membership program. Under the terms of the program, TFG charges consumers a monthly fee, ranging from $39.95 to $59.95 per month, unless the consumer makes a purchase or affirmatively “skips” the payment via their customer account.
The stipulations of the settlement include that TFG/JustFab is required to:
Business practices:
- Clearly and conspicuously disclose the material terms of its VIP membership program, including but not limited to, the fact that consumers will be enrolled in the program, the amount and frequency of all applicable and recurring charges and the consumers’ right to cancel.
- Obtain the consumer’s express informed consent prior to enrolling any consumer in the VIP membership program.
- Refrain from representing its offers or sales of its products as time sensitive when they are not.
- Refrain from presenting in its offer or sale of a membership program that it is “free” or otherwise represent that a program does not require additional payments or actions by the consumer.
- Provide notifications of recurring charges.
- Provide a simple online mechanism for consumers to cancel their VIP membership program.
- Also promptly accept and process any request by a consumer to cancel their membership and top the billing and collecting of payments for any recurring charge.
- Promptly honor consumer cancellation requests and cease any further billing.
Within 90 days of signing, and every 12 months thereafter, provide videos showing the complete, current purchase path for consumers enrolling in a membership program for the first time.
Restitution:Provide automatic restitution to all consumers who enrolled in a VIP membership program prior to May 31, 2016, and only made an initial purchase – but no subsequent purchases and never skipped a payment.
Provide restitution to consumers who have an existing eligible complaint against the company that has not been resolved, and to consumers who file a new eligible written complaint with the company or the Attorney General’s office within 90 days of the Effective Date of the settlement, November 1, 2025, that was not previously resolved.
Restitution may be available for additional affected consumers. If you believe you may have been affected by TFG/JustFab’s business practices, please file a complaint with the NMDOJ at https://nmdoj.gov/get-help/submit-a-complaint/ or call the office at 505-490-4060.
New Mexico joins the settlement, negotiated by the District of Columbia, Pennsylvania, Maryland and Texas, alongside the Attorneys General of Alabama, Arkansas, Colorado, Connecticut, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Vermont, Washington and Wisconsin.
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