People are calling Kate Hudson's wildly popular clothing company a scam by Mallory Schlossberg on Sep 28, 2015, 11:42 AM Advertisement
 People are retaliating against Kate Hudson's athleticwear company, Fabletics, and its parent company, JustFab, Buzzfeed reports. JustFab, which is home to Fabletics and several other fashion retailers, including the Kardashian-affiliated ShoeDazzle, operates on a membership basis.
Members receive discounted apparel (athleisure clothes, in Fabletics' case) through subscriptions.
Fabletics boasts that its cheaper than athleticwear stalwarts Lululemon and Nike – and it has the added bonus of its celebrity endorsement. But it seems to be all downhill from there. The catch, Buzzfeed says, is that JustFab avoids actually telling members they are opting into subscriptions; the company calls subscribers "VIP Members." These VIPs are then billed on a monthly basis, and it's exceedingly tough to get out of the billing cycle. Members can only opt out by calling.
Complaints about the business' automatic billing policy have led to the California district attorney investigating the company. "We were concerned that consumers had signed up for essentially a shoe or an outfit of the month club without enough disclosures where the consumer could determine that," Kelly Walker, Santa Cruz County assistant district attorney said to BuzzFeed. "This is becoming a business practice that we're becoming very concerned about. We are setting up a task force here in California just to deal with these companies with automatic renewal or automatic negative option sales programs." 
Customers have taken to Twitter to express their frustration. JustFab has over one thousand complaints filed with the Better Business Bureau, which is not good for a company reportedly valued $1 billion. "From day one, we have been upfront about our flexible subscription model, the value it creates for our customers, and its terms of service," a JustFab representative said to BuzzFeed. Co-founder and co-CEO Adam Goldenberg told Buzzfeed that these complaints comprise a "a very, very small minority" of customers. Fabletics and parent company JustFab have reponsed on Twitter to several complaints, as well.
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