Kim Kardashian’s Skims Body Inc. will pay a $200,000 civil penalty to settle fraud allegations in connection to the company collecting sales tax on tax-exempt clothing sold to customers in New Jersey.
New Jersey law exempts everyday clothing and footwear from sales tax, but Skims apparently charged for it anyway between 2019 and 2024, violating New Jersey’s Consumer Fraud Act, Attorney General Matthew Platkin and the Division of Consumer Affairs announced jointly on Tuesday.
Skims’ “unconscionable business practices” meant that the company did not have a system in place to shield New Jersey consumers buying online from being charged sales tax, the AG’s office said.
Kardashian founded the body-positive apparel and skin care company in 2019, so those practices were in place from the get-go, according to authorities.
Celebs from Kim Cattrall to Anthony Hopkins have swanned or snickered in the reality star’s shapewear, slimming face masks and even a bra with a built-in nipple.
By 2023, the company was worth $4 billion, and in November 2025 that had risen to $5 billion. Kardashian is a billionaire nearly twice over, according to Forbes.
“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 in a statement. “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.”
In addition to the penalty, Skims has already returned the errant tax money to the New Jersey Division of Taxation and is tracking down consumers who may have paid the tax in error so it can reimburse them. The company has also agreed to fix its processes so it won’t happen again.
Skims will keep the case open for four years so as to “facilitate and complete” further consumer refund requests, the DA’s office said.
Skims did not immediately reply to a request for comment from the Daily News.
