Kim Kardashian’s clothing company SKIMS has agreed to pay a $200,000 civil penalty to the state of New Jersey. The settlement comes after allegations that the brand overcharged New Jersey customers by improperly collecting sales tax on clothing.
The New Jersey Attorney General’s Office alleges that SKIMS collected sales tax from customers between 2019 and 2024 on items that are largely exempt under state law, including underwear and shapewear. Clothing and footwear are generally not subject to New Jersey’s 6.625% sales tax.
The violations were discovered by the Division of Consumer Affairs, which said the SKIMS’ actions violated New Jersey’s Consumer Fraud Act. Attorney General Matthew Platkin described the conduct as harmful to consumers, stating: “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.”
SKIMS said the tax collection came from a technical error, assuring that the issue has been corrected and that New Jersey customers have been contacted to receive refunds. Under the settlement guidelines, SKIMS must use “best efforts” over the next four years to refund customers who fell victim to the overcharge.
State officials said the sales tax collected by SKIMS had already been remitted to the New Jersey Division of Taxation.
The company, co-founded by Kardashian and worth roughly $5 billion, agreed to pay the penalty without admitting wrongdoing.
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