The company behind brands like JustFab, ShoeDazzle and FabKids has agreed to a $1 million settlement, accusing it of deceptive advertising and billing practices, Michigan Attorney General Dana Nessel announced. 

TFG Holding, Inc., an online clothing retailer that sells clothing, shoes and accessories, is accused in the lawsuit, brought by 33 states and jurisdictions, of deceptively marketing its VIP Membership Program and making it difficult for consumers to cancel memberships. 

Nessel said the company offered discounted pricing to customers if they enrolled in the VIP Membership Program. VIP members were charged $49.95 per month unless, before the sixth of each month, members made a purchase or logged into their account to "skip" the charge, Nessel said. Those monthly charges would accrue in member accounts as store credits, which then could be used toward future purchases. 

"Consumers deserve clear information about the memberships they sign up for, and they should be able to cancel and stop paying for ones they didn't mean to buy or just don't want anymore," Nessel said in a statement. "My office remains committed to working with attorneys general across the country to protect residents from deceptive business practices." 

As part of the settlement, Nessel said TFG Holding will honor consumer cancellation requests and cease any further billing, give all customers the chance to request and obtain a refund of any recurring charge balance accrued within the following year, clearly disclose the terms of its VIP Membership Program, and stop billing recurring charges to any customer who enrolled in the membership program before May 31, 2016, unless that individual has skipped a payment, redeemed a credit, received a refund or made an additional purchase.

TFG Holding is also required to automatically provide restitution to customers who enrolled in the VIP program before May 31, 2016, and made only one purchase and did not skip a payment. TFG Holding must also pay restitution to customers who have an eligible existing complaint against the company and to customers who file a new eligible complaint with the company or an attorney general's office within 90 days of the settlement that was not resolved. 

The company will also pay $1 million to cover the costs of the investigation by the jurisdictions or to be used for future protection purposes, Nessel said.