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.

Phil Stilton Latest posts

Phil Stilton is the Editor and Publisher of Shore News Network, an independent digital newsroom providing original reporting on New Jersey, national news, government, public policy, public safety, courts, and community affairs.

As founder of the publication, Stilton leads editorial strategy, investigative reporting, and daily newsroom operations while overseeing coverage that reaches millions of readers annually.

With extensive experience covering municipal government, county government, state legislatures, elections, law enforcement, emergency management, and public records, Stilton specializes in translating complex government actions into clear, factual reporting. His work frequently relies on primary source documents, including court filings, legislation, public meeting records, election finance disclosures, government databases, police reports, and Freedom of Information and Open Public Records Act (OPRA) requests. He has reported extensively on local government accountability, taxpayer spending, campaign finance, public corruption investigations, infrastructure, public safety, and the policies affecting New Jersey residents.

Under Stilton's editorial leadership, Shore News Network has grown into one of New Jersey's largest independent digital news organizations, publishing thousands of original news articles each year while providing breaking news coverage, investigative reporting, and analysis across state and local government. The publication's reporting is routinely sourced from official government agencies, public officials, court records, and firsthand documentation, with a commitment to transparency, attribution, corrections when warranted, and clearly distinguishing factual reporting from opinion.

Stilton's journalism follows established newsroom standards emphasizing accuracy, verification, fairness, and accountability. Every effort is made to verify information through official records and multiple reliable sources before publication. His reporting is intended to provide readers with timely, well-documented information that helps them understand the issues affecting their communities, while maintaining editorial independence from political parties, government agencies, advocacy organizations, and commercial interests.

Readers can submit story tips, corrections, public records, or media inquiries through the official Shore News Network website or its verified social media channels. Shore News Network welcomes corrections and updates when new information becomes available as part of its ongoing commitment to accurate and transparent journalism.