Kim Kardashian's Skims Slapped With $200,000 Settlement After Years of Overcharging Shoppers

For years, some New Jersey shoppers noticed something was off when buying Kim Kardashian's Skims. Their receipts showed sales tax on clothing that, under state law, is usually tax free. Now, the state says those customers were right.

According to Los Angeles Times, Kardashian's shapewear and loungewear brand Skims has agreed to pay $200,000 to settle allegations that it improperly charged sales tax to New Jersey customers from 2019 through 2024, state officials announced Tuesday.

New Jersey Attorney General Matthew Platkin said the company's practices led consumers to pay more than they legally owed, calling the conduct an unconscionable business practice under state consumer protection laws. The settlement was reached in coordination with the state's Division of Consumer Affairs.

"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, adding that the state will not tolerate companies taking unlawful payments from hard working residents.

Skims blamed the issue on a technical error in its sales tax collection system. A company spokesperson said the mistake was inadvertent and has since been corrected.

According to the consent order filed Jan. 16, the state launched its investigation after receiving a formal consumer complaint in early 2024. That probe followed years of online complaints, including Reddit posts dating back to 2021, in which New Jersey customers questioned why they were being charged tax on clothing purchases.

As part of the agreement, Skims has begun contacting affected customers and issuing full refunds for any over collected sales tax. The company must also, for the next four years, use best efforts to ensure refunds are processed in a reasonably timely manner if similar errors occur.

Skims was founded in 2019 by Kim Kardashian and chief executive Jens Grede. What started as a direct to consumer online brand has grown into a national retail presence, including a flagship store that opened in West Hollywood in April 2025.

The privately held company, which has ridden the global boom in athleisure and shapewear, was valued at $5 billion in November.

In a statement, Skims said it remains committed to compliance and has implemented additional safeguards to prevent similar issues in the future.

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Kim Kardashian, Skims