JustFab Called Out For Its ‘Shady’ Business Practices

Photo: Fabletics 

The brand behind Kate Hudson’s Fabletics line is being called out for their shady business practices.

In an exposé· by Buzzfeed, JustFab is accused of deceiving shoppers, marketing schemes and horrible customer service. Calling out the company’s founders Adam Goldenberg and Don Ressler for their history of Internet marketing schemes including Sensa and “conning consumers into subscriptions for anti-aging shampoo and wrinkle cream under the guise of ‘brand building and ‘innovation.’

The biggest problem at JustFab, according to the report, is tricking customers into signing up for a subscription service, which they call VIP membership, when making a single purchase. This service automaticaly charges you at the beginning of every month, unless you opt out within the first five days. To cancel requires a lengthy call to customer service.

And customers are complaining. According to the report, more than 1,400 complaints have been made to the Better Business Bureau since August 2012, and its accreditation with the BBB was revoked in May.

Photo: FayesVision/WENN 

It has also settled several lawsuits in California and Florida, and despite all the “shady history” investors continue to back the company with famous faces such as Kate Hudson and Kimora Lee Simmons. JustFab is expected to make $500 million this year, and have raised more than $300 million in equity backing. At a $1 billion valuation, it is considered a “unicorn” in Silicon Valley.

My personal experience with JustFab has been just as frustrating. To use a giftcard given to me, I had to enter my personal and credit card information to the site. Without knowing I was entered into their VIP membership program, which means I was going to be charged $40 a month. The following month, when the charge appeared on my bank statement, I was unable to cancel my subscription online and had to make a lengthy call to customer service. After two calls, and a purchase I did not want to make, I was able to cancel, but not before dealing with a customer service agent that tried incessantly with discounts and other incentives to prevent the cancellation.

Have you had a similar experience with JustFab? Let us know in the comments below! 

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