Published on July 21st, 20170
Fabletics’ VIP Membership Program
questioned whether the advertising clearly disclosed the material limitations of the discount offer, specifically that VIP membership obligates consumers to opt out monthly in order to avoid repeated charges.
TINA.org originally alerted consumers to this so-called “Skip the Month” feature in 2015. It gives VIP members the option to cancel only the current month’s selection of clothing and avoid being charged $49.95. But members have a limited time frame in which they can invoke the option (between the 1st and 5th day of the month) and it can only be done online.
JustFab said it will now be sure to clearly and conspicuously disclose in immediate proximity to any discount offer tied to the VIP membership program all these details to consumers.
Find more of our coverage on subscription services here.
UPDATE 9/19/17: The ASA has banned two ads from JustFab for discounts on shoes purchased as new VIP members. The U.K.’s ad watchdog said both ads did not make it clear that by signing up as VIP members consumers are enrolling into a monthly subscription program.
The National Advertising Division, or NAD, is an investigative unit of the advertising industry’s system of self-regulation. It is administered by the Council of Better Business Bureaus. NAD asks advertisers to substantiate or change their claims in advertisements. As part of a voluntary system of self-regulation, however, its recommendations can be ignored by the offending advertisers. In those instances, NAD refers the offender to federal consumer protection agencies.