Skims fined $200K for charging sales tax in New Jersey

A shapewear and apparel brand co-founded by Kim Kardashian agreed to pay $200,000 to settle allegations it collected sales tax on tax-exempt clothing sold to consumers in New Jersey, according to authorities.

Outgoing New Jersey Attorney General Matthew Platkin said Los Angeles-based Skims failed to ensure local customers were not charged sales tax on tax-free merchandise between 2019 and 2024. The announcement follows an investigation by the state Division of Consumer Affairs.

As part of a consent order announced Jan. 20, Skims said it would implement reforms to prevent future violations of the state’s Consumer Fraud Act.

The brand already remitted the improperly collected sales tax to the New Jersey Division of Taxation, Platkin said. Skims also took steps to identify and reimburse impacted consumers, he added.

It is unclear how many customers in New Jersey were affected. NJBIZ reached out to the AG’s office for additional details.

Additionally, for the next four years, Skims “will use its best efforts to facilitate and complete any additional consumer requests for refunds in a reasonably timely manner,” Platkin said.

“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,” he stated.

Division of Consumer Affairs acting Director Elizabeth Harris added, “The Division takes seriously unlawful practices that negatively impact purchases of essential items for consumers. This settlement holds Skims accountable for the harms it caused New Jersey customers and helps protect consumers from future harm.”

A media representative for Skims did not immediately respond to a request for comment.

Following Gov. Mikie Sherrill’s Jan. 20 swearing in, Jennifer Davenport serves as acting attorney general until the state Senate confirms her officially to the post.