Skims agrees to pay $200,000 penalty to settle N.J. allegations it wrongly charged sales tax
TRENTON, N.J. — Skims Body, Inc., an online apparel company founded by celebrity Kim Kardashian, has agreed to pay a $200,000 civil penalty to resolve New Jersey allegations that it improperly collected sales tax on tax-exempt clothing sold to consumers in the state, Attorney General Matthew J. Platkin and the Division of Consumer Affairs announced.
Under New Jersey tax law, everyday clothing and footwear are exempt from sales tax. State investigators said Skims collected sales tax from New Jersey customers from 2019 through 2024 on items that should not have been taxed, conduct the Division said violated the state 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,” Platkin said. “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 alleged the company engaged in unconscionable business practices by collecting sales tax on tax-exempt items and failing to ensure New Jersey consumers were not charged sales tax on tax-exempt merchandise. Officials said Skims has already remitted the improperly collected tax to the New Jersey Division of Taxation and has taken steps to identify and reimburse impacted consumers.
“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 the $200,000 penalty and comply with applicable state and federal laws, rules and regulations, including the Consumer Fraud Act. The company also agreed to continue implementing and maintaining systems and procedures to ensure New Jersey consumers are not charged sales tax on tax-exempt merchandise in accordance with the New Jersey Sales and Use Tax Act.
Under the agreement, Skims will use its best efforts for the next four years to facilitate and complete any additional consumer refund requests in a reasonably timely manner, officials said.
