Kim Kardashian's Skims paying $200K settlement after charging N.J. customers sales tax, AG says

The online clothing company Skims Body Inc., founded by Kim Kardashian, is settling with the New Jersey Office of the Attorney General after the state said Skims was charging customers for sales taxes that they didn't need to pay.

Clothing is not subject to sales tax in New Jersey, but Skims collected it when selling to customers in the Garden State, Attorney General Matt Platkin's office said in a news release Tuesday.

In a statement, Skims said the issue stemmed from "a technical error in our sales tax collection system" and that the revenue was given to the state of New Jersey.

"We have corrected our systems and proactively reached out to all affected customers to provide full refunds of any over collected amounts," a Skims spokesperson said. "We remain deeply committed to the highest standards of compliance and have implemented enhanced safeguards to prevent any recurrence of similar issues."

Platkin said Skims collected sales tax from 2019 to 2024 before a complaint was filed and investigated.

Under a consent order issued earlier this month, Skims has agreed to pay a $200,000 civil penalty — and ensure its systems don't continue to charge sales tax to New Jersey customers.

The company has also been tasked with identifying which customers have paid sales tax that they didn't need to, and issuing refunds.

"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," Platkin said in the news release.