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Skims to Pay $200,000 After New Jersey Finds It Charged Tax on Exempt Clothing

The settlement requires four years of refunds to customers under state oversight.

Overview

  • An AG consent order dated Jan. 16 resolves an investigation into sales-tax charges to New Jersey shoppers from 2019 through 2024.
  • Attorney General Matthew Platkin described the conduct as unconscionable and said it violated consumer-protection rules.
  • The company has remitted the improperly collected tax to the Division of Taxation and must locate and reimburse affected customers.
  • Skims must implement system fixes to stop wrongful charges and will be monitored for compliance during the four-year period.
  • The brand attributed the problem to a technical error and had already begun issuing refunds prior to the settlement.