Kim Kardashian's SKIMS coughs up hefty settlement after fraud allegations

Trenton, New Jersey - Kim Kardashian's SKIMS has agreed to pay a penalty after the brand "unlawfully" collected sales tax on tax-exempt items!

Kim Kardashian's SKIMS brand will pay $200,000 after an investigation revealed that the company violated New Jersey's Consumer Fraud Act.
Kim Kardashian's SKIMS brand will pay $200,000 after an investigation revealed that the company violated New Jersey's Consumer Fraud Act.  © Screenshot/Instagram/skims

Per the New York Daily News, the 45-year-old's fashion line will pay $200,000 for the consumer fraud allegations against the company.

New Jersey Attorney General Matthew Platkin said Kim's brand violated New Jersey's Consumer Fraud Act between 2019 and 2024 in a statement released on Tuesday.

"As prices on everything from clothing to groceries soar, our office is committed to protecting our residents from unlawful practices that drive up the prices they pay at the register," Platkin said.

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He added, "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."

The body-positive company, which is now worth $5 billion, will return the errant tax money to the New Jersey Division of Taxation while also reimbursing consumers.

Additionally, Kim has agreed to make sure that the "error" won't happen again!

Cover photo: Collage: Screenshot/Instagram/skmis & kimkardashian

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