People are calling Kate Hudson's wildly popular clothing company a scam

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People are retaliating against Kate Hudson's athletic-wear 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 it is cheaper than the athletic-wear 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 tough to get out of the billing cycle. Members can opt out only by calling.

Complaints about the business' automatic billing policy have led district-attorney offices in California to investigate 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, told 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."

Fabletics home pageFabletics on Facebook

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.

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People are calling Kate Hudson's wildly popular clothing company a scam
LONDON, ENGLAND - JULY 02: Kate Hudson attends the Serpentine Gallery Summer Party at The Serpentine Gallery on July 2, 2015 in London, England. (Photo by Ian Gavan/Getty Images)
NEW YORK, NY - OCTOBER 15: Actress Kate Hudson attends God's Love We Deliver, Golden Heart Awards at Spring Studio on October 15, 2015 in New York City. (Photo by Dimitrios Kambouris/Getty Images for Michael Kors)
LONDON, ENGLAND - JUNE 02: Kate Hudson attends the Glamour Women Of The Year Awards at Berkeley Square Gardens on June 2, 2015 in London, England. (Photo by Anthony Harvey/Getty Images)
NEW YORK, NY - MAY 11: Actress Kate Hudson and fashion designer Michael Kors attend the 'China: Through The Looking Glass' Costume Institute Benefit Gala at the Metropolitan Museum of Art on May 4, 2015 in New York City. (Photo by Andrew H. Walker/Getty Images for Variety)
NEW YORK, NY - FEBRUARY 18: Actress Kate Hudson poses backstage at the Michael Kors fashion show during Mercedes-Benz Fashion Week Fall 2015 at Spring Studios on February 18, 2015 in New York City. (Photo by Dimitrios Kambouris/Getty Images for Michael Kors)
PARIS, FRANCE - JANUARY 25: (L-R) Kate Hudson and Goldie Hawn attend the Versace show as part of Paris Fashion Week Haute Couture Spring/Summer 2015 on January 25, 2015 in Paris, France. (Photo by Pascal Le Segretain/Getty Images)
BEVERLY HILLS, CA - JANUARY 11: Actress Kate Hudson attends the 72nd Annual Golden Globe Awards at The Beverly Hilton Hotel on January 11, 2015 in Beverly Hills, California. (Photo by Jason Merritt/Getty Images)
NEW YORK, NY - FEBRUARY 18: Actress Kate Hudson arrives at the Michael Kors Miranda Eyewear Collection launch party at Michael Kors on February 18, 2015 in New York City. (Photo by Brent N. Clarke/Getty Images)
NEW YORK, NY - FEBRUARY 18: Actress Kate Hudson and designer Michael Kors pose backstage at the Michael Kors fashion show during Mercedes-Benz Fashion Week Fall 2015 at Spring Studios on February 18, 2015 in New York City. (Photo by Dimitrios Kambouris/Getty Images for Michael Kors)
BEVERLY HILLS, CA - DECEMBER 18: Kate Hudson arrives at the The PEOPLE Magazine Awards at The Beverly Hilton Hotel on December 18, 2014 in Beverly Hills, California. (Photo by Steve Granitz/WireImage)
BEVERLY HILLS, CA - NOVEMBER 21: Host committee member Kate Hudson attends Goldie Hawn's inaugural 'Love In For Kids' benefiting the Hawn Foundation's MindUp program transforming children's lives for greater success at Ron Burkles Green Acres Estate on November 21, 2014 in Beverly Hills, California. (Photo by Jason Merritt/Getty Images for The Hawn Foundation)
Kate Hudson attends the premiere of "Wish I Was Here" on Monday, July 14, 2014 in New York. (Photo by Charles Sykes/Invision/AP)
Actress Kate Hudson attends the 2014 Vanity Fair Oscar Party on Sunday, March 2, 2014, in West Hollywood, Calif. (Photo by Evan Agostini/Invision/AP)
Kate Hudson arrives at the Oscars on Sunday, March 2, 2014, at the Dolby Theatre in Los Angeles. (Photo by Chris Pizzello/Invision/AP)
Kelly Sawyer Patricof, co-founder of Baby2Baby, left, and Kate Hudson attend the Third annual Baby2Baby Gala honoring Kate Hudson at The Book Bindery on Saturday, Nov. 8, 2014, in Culver City, Calif. (Photo by Todd Williamson/Invision for Baby2Baby/AP Images)
LOS ANGELES, CA - FEBRUARY 19: Kate Hudson seen at LAX on February 19, 2015 in Los Angeles, California. (Photo by GVK/Bauer-Griffin/GC Images)
NEW YORK - FEBRUARY 18: Kate Hudson out in Manhattan on February 18, 2015 in New York, New York. (Photo by Josiah Kamau/BuzzFoto via Getty Images)
NEW YORK, NY - DECEMBER 14: Actress Kate Hudson attends the New York premiere of 'The Hateful Eight' on December 14, 2015 in New York City. (Photo by Nicholas Hunt/Getty Images)
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"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 told BuzzFeed. Cofounder and co-CEO Adam Goldenberg told BuzzFeed that these complaints made up "a very, very small minority" of customers.

Fabletics and JustFab have responded on Twitter to several complaints as well.



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