Skims Body, Inc., an online apparel retailer, has agreed to pay a $200,000 civil penalty following allegations that it improperly collected sales tax from New Jersey consumers on tax-exempt clothing. The announcement was made by Attorney General Matthew J. Platkin and the Division of Consumer Affairs.
New Jersey law exempts everyday clothing and footwear from sales tax. A state investigation found that Skims, founded by Kim Kardashian, collected sales tax on these items from 2019 through 2024. The Division alleged this practice violated the state’s 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,” said Attorney General Platkin. “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 stated that Skims engaged in unconscionable business practices by collecting sales tax on items that should have been exempt and did not ensure customers were charged correctly. As part of the settlement, Skims has remitted the improperly collected taxes to the New Jersey Division of Taxation and started identifying and reimbursing affected customers. The company will also implement reforms to prevent future violations.
“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.”
According to a Consent Order filed with the Division, Skims will immediately pay a $200,000 civil penalty and comply with all relevant laws and regulations, including those under the Consumer Fraud Act. The company must maintain systems ensuring no sales tax is charged on exempt merchandise in line with state law and facilitate consumer refund requests over the next four years.
The investigation was conducted by Investigator Aziza Salikhova under Gregory Turner’s supervision within the Office of Consumer Protection. Deputy Attorneys General Mehnaz Rahim, Monisha Kumar, and Jesse J. Sierant represented the state in this matter.
The New Jersey Attorney General’s Office is responsible for legal enforcement across New Jersey and includes divisions dedicated to consumer protection.
