The discount that starts a subscription

Fabletics sells activewear - leggings, sports bras and workout sets - and its most visible marketing promise is the price of a first order. The discount is deep, and it is the reason most shoppers reach the checkout page.

Completing that first discounted purchase enrolls the shopper in Fabletics' VIP Membership, an automatically renewing program that charges $59.95 every month. Consumers report that the automatic-renewal terms were not clearly and conspicuously disclosed before they bought. The offer they were responding to was a price on a pair of leggings, not a standing monthly obligation.

This investigation is about the gap between the price the shopper saw and the monthly charge they were signed up for.

A charge that becomes store credit, not merchandise

The $59.95 is not a fee for a service, and it is not payment for anything the member picked out. It is billed as a "member credit": Fabletics takes the money each month and holds it as a balance the member can later spend in the Fabletics store.

The money leaves the bank account on schedule whether or not the member wanted anything that month, visited the site, or remembered the membership existed. What the member gets in exchange is store credit that can be spent only at Fabletics.

A recurring charge that converts a customer's cash into store credit is not unlawful by itself. It becomes a legal problem when the customer was never told plainly that the recurring charge was coming.

Why the credits pile up

Members report a second problem: the credits are difficult to redeem. Items in the Fabletics catalog routinely cost more than a monthly credit is worth, so one credit does not simply buy one item. A member who wants to use a credit ends up adding money on top of it, or waiting to combine credits.

So the balance grows. Each month $59.95 leaves the account, and the credits often sit unspent. Members who eventually decide to leave then report that cancellation is obstructed.

That combination - a charge they did not clearly agree to, credits that are hard to spend, and a cancellation process that is hard to complete - is why members say the membership cost them far more than the first-order discount ever saved them.

Where the law draws the line

A membership that bills you again unless you act is what federal law calls a negative option. The structure itself is lawful; the law regulates how the seller must set it up.

The federal Restore Online Shoppers' Confidence Act, 15 U.S.C. § 8401 et seq., governs negative-option offers sold over the internet. It requires the material terms of the recurring charge to be disclosed clearly and conspicuously before the seller takes the customer's billing information, requires the customer's informed consent to those terms, and requires a simple way to stop the charges.

California's Automatic Renewal Law, Cal. Bus. & Prof. Code § 17600 et seq., imposes parallel requirements, as do the automatic-renewal statutes of a number of other states. Every state also has an unfair and deceptive trade practices law - in North Carolina, where our firm is based, N.C. Gen. Stat. § 75-1.1. Each of these laws asks the same question of a program like the VIP Membership: was the recurring charge disclosed plainly enough that the shopper knowingly agreed to it?

Who this investigation covers

You may be able to participate if you signed up with Fabletics and any of the following describes what happened next:

  • You bought a discounted first order and only later discovered you had been enrolled in a monthly membership.
  • You were charged $59.95 in a month you did not shop, and did not understand at purchase that this would happen.
  • You accumulated member credits you could not readily spend because the items you wanted cost more than the credit.
  • You tried to cancel and found the process harder than signing up had been, or were billed again after attempting to cancel.
  • You live in the United States. Current and former members both qualify.

Documentation helps but is not required to start. If you still have them, three records carry the most weight: the order confirmation from your first discounted purchase, the card or bank statements showing the monthly charges, and anything recording your cancellation attempt and its date.

What the public record already shows

Member reports are not the only evidence. A putative class action alleging these violations was filed on March 12, 2025 in the United States District Court for the Central District of California. Those allegations have not been proven, and Fabletics has not conceded them.

What is not in dispute is that the VIP Membership remains active. Fabletics sells this way today, which is why we are gathering accounts from members now rather than treating the matter as closed.

Maginnis Howard is a consumer protection law firm serving clients nationwide. Signing up costs nothing and commits you to nothing beyond letting us review what happened, and we work on contingency: if there is no recovery, you owe us nothing.

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No. Both current and former subscribers may qualify.

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Maginnis Howard is a consumer protection and personal injury law firm serving clients nationwide. You may find more details about us at www.carolinalaw.com.

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What if I have other questions?

For all other questions, contact us at unlawfulcharges@carolinalaw.com.

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