JustFab Trying to Recover After Thousands of Customer Complaints

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After thousands of customers filed a complaint against Kate Hudson's activewear brand Fabletics and its parent company JustFab, the pair is taking a long hard look in the mirror, according to Bloomberg. Angry customers claim that the companies use deceptive advertising and a difficult-to-cancel subscription service to get people to pay for its monthly subscription service without their knowledge.

JustFab co-CEO Adam Goldenberg says that the company has hired a third-person auditor to look into the brand's customer service practices. The auditor's findings will be released to the public. In addition to an outside auditor, Goldenberg also says that executives have been put in charge of "member satisfaction" and says that they are considering a system by which customers could cancel their subscriptions online. "Maybe in the future we'll roll that out," Goldenberg tells Bloomberg.

Goldenberg also defends JustFab's checkout process, which many claim doesn't give enough warning to customers that they are signing up for a recurring monthly subscription. "It is certainly not the company's intention to have anybody be confused," he says. "If someone feels tricked, we lose that customer." However, the sheer amount of complaints JustFab has received proves otherwise, says Truth in Advertising's executive director Bonnie Patten. "Articulate, reasonable people are being duped. "It's a model that allows [JustFab] to make more money," said Patten. "Unfortunately, misleading marketing works. And that's what this company is, in some part, using to be so successful."