TRENTON, N.J. — Attorney General Matthew J. Platkin announced on Wednesday that Skims Body, Inc., the online clothing retailer established by Kim Kardashian, has consented to pay a civil penalty of $200,000 to settle claims that it improperly collected sales tax on tax-exempt clothing sold to consumers in New Jersey.
According to New Jersey law, the majority of clothing and footwear are exempt from sales tax. An investigation conducted by the Division of Consumer Affairs revealed that from 2019 to 2024, Skims levied sales tax on items that should have been exempt. The Division stated that this conduct constituted a violation of the state’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,” Platkin said. “We’re holding Skims accountable because their conduct harmed New Jersey consumers by requiring them to pay more than what they owed.”
The Division reports that Skims participated in unethical business practices by charging sales tax on items that are tax-exempt and not making sure that New Jersey customers were not overbilled. Since then, Skims has returned the wrongly collected sales tax to the state and has initiated measures to refund the consumers who were impacted.
As part of a Consent Order, Skims agreed to:
- Pay the $200,000 civil penalty.
- Comply with all applicable state and federal laws, including the Consumer Fraud Act.
- Maintain procedures to ensure tax-exempt merchandise is not taxed in the future.
- For the next four years, use its best efforts to process additional consumer refund requests promptly.
Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs, said the settlement “holds Skims accountable for the harms it caused New Jersey customers and helps protect consumers from future harm.”
Read Consent Order here
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