Dive Brief:
- JustFab is reviewing its customer service practices following accusations that the online fashion retailer is deceiving shoppers with monthly subscriptions that are hard to cancel, according to Bloomberg.
- More than a thousand customer complaints have been submitted to the Better Business Bureau and the Federal Trade Commission, Buzzfeed reported.
- Last year, the retailer settled a consumer protection lawsuit in California for $1.8 million, and has been the target of consumer advocacy groups such as Truth in Advertising.
Dive Insight:
Many of the complaints are centered on JustFab's $39.95 "VIP Membership" program. The site does not give shoppers sufficient warning that they are signing up for an ongoing monthly payment when buying merchandise, the complaints say, and that the subscription can be canceled only over the phone instead of online or via e-mail, according to Bloomberg.
Adam Goldenberg, co-chief executive of JustFab, linked the issue to the company’s fast growth: The retailer was founded in 2010 and will swell to $500 million in sales this year.
What’s more, the complaints reflect a fraction of the retailer’s customer base, he said.
To address the complaints, JustFab is hiring a third-party auditor to evaluate its customer service systems, with plans to release those findings to the public, said Adam Goldenberg, co-chief executive of JustFab.
The retailer is also evaluating ways customers can unsubscribe online. "Maybe in the future we'll roll that out," Goldenberg said, according Bloomberg.
