Earlier this fall, subscription retail company JustFab — which houses Kate Hudson’s Fabletics — was a part of a scandal, with many people calling the company a huge scam.
In September, Buzzfeed released an in-depth report of JustFab’s misleading subscription service — which calls subscribers “VIP members.” Members were complaining that they didn’t realise they were signing up for a $US39.95/month subscription — and they claimed the company made it difficult to cancel.
The company has amassed over one thousand complaints to the Better Business Bureau.
“The vast, vast, vast majority of our customers not only understand the VIP model, they also really like it,” CEO Adam Goldenberg said to Bloomberg.” When you’re bringing in hundreds of thousands of new customers a month, you’re not going to get everything right.”
Now, JustFab is taking action. The company is investigating those complaints and the company’s customer service methodologies, Bloomberg reports.
Bloomberg highlighted that JustFab will hire an auditor to look at the company’s customer service operations, as well as a team to focus on “member satisfaction.”
Perhaps most notably, Bloomberg reports that JustFab is considering offering members the opportunity to unsubscribe from the service online. However, Goldenberg maintained that wasn’t a certainty. “Maybe in the future we’ll roll that out,” he said to Bloomberg.
That could potentially solve many problems — a huge caveat noted in the Buzzfeed expose was that JustFab didn’t let members unsubscribe online. They had to call in to do so.
Some experts think JustFab’s model is successful, albeit misleading.
“It’s a model that allows [JustFab] to make more money … Unfortunately, misleading marketing works. And that’s what this company is, in some part, using to be so successful,” Bonnie Patten, executive director of Truth in Advertising, said to Bloomberg.
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