TRENTON, N.J. – Skims Body, Inc., the apparel brand founded by Kim Kardashian, has agreed to pay a $200,000 civil penalty after New Jersey officials alleged the company improperly charged sales tax on clothing purchases that should have been exempt under state law.
Attorney General Matthew J. Platkin announced Monday that the settlement resolves claims Skims violated New Jersey’s Consumer Fraud Act by collecting sales tax on everyday clothing and footwear—items that are exempt from sales tax in the state. A Division of Consumer Affairs investigation determined that Skims collected the improper tax from New Jersey customers between 2019 and 2024.
Platkin said the company’s actions forced consumers to pay more than they owed. “We’re holding Skims accountable because their conduct harmed New Jersey consumers by requiring them to pay more than what they owed,” Platkin said in a statement. “We won’t tolerate conduct that unlawfully takes money out of the pockets of hard-working New Jerseyans.”
As part of the agreement, Skims will pay the $200,000 penalty, maintain compliance with all state and federal consumer protection laws, and continue to implement safeguards to prevent similar violations. The company has already remitted the improperly collected taxes to the New Jersey Division of Taxation and begun identifying and reimbursing affected customers.
Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs, said the outcome underscores the state’s focus on protecting residents from unlawful pricing practices. “This settlement holds Skims accountable for the harms it caused New Jersey customers and helps protect consumers from future harm,” Harris said.
The Consent Order also requires Skims to maintain systems ensuring no sales tax is charged on tax-exempt merchandise and to respond promptly to refund requests from consumers for the next four years.
The case was investigated by Investigator Aziza Salikhova under the supervision of Assistant Deputy of Enforcement Gregory Turner. The state was represented by Deputy Attorneys General Mehnaz Rahim, Monisha Kumar, and Jesse J. Sierant of the Division of Law’s Consumer Fraud Prosecution Section.
Key Points – Skims to pay $200K fine over improper NJ sales tax charges
- Skims Body, Inc. agreed to pay $200,000 to settle allegations it charged sales tax on tax-exempt clothing in New Jersey.
- The company has reimbursed the state and is identifying affected customers for refunds.
- Skims must maintain compliance systems and honor refund requests for the next four years.
