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Last week, LuLaRoe was hit with a class action lawsuit accusing the company of failing to honor its 100 percent buyback and free shipping policies, causing consumers to be stuck footing the bill for a portion of the returns and shipping costs.
LuLaRoe, which was incorporated in May 2013, is clothing company that relies on individual consultants to sell shirts, dresses, skirts, dresses and leggings.
According to the LuLaRoe class action lawsuit, consultants must pay for a start-up inventory kit of clothing and promotional materials. These expenditures typically cost $5,000 to $8,000.
“As bait to lure consultants to sign up and/or purchase more inventory, in April 2017, LuLaRoe promised consultants they could cancel their agreements with LuLaRoe and be refunded 100% of the wholesale amount of inventory purchased, including shipping charges,” the LuLaRoe buyback class action lawsuit says. “The 100% refund had no conditions or exceptions attached,” and the company reportedly promised that the 100% buyback policy would never expire.
However, the clothing company changed its buyback policy unexpectedly on Sept. 13 so that it no longer provides free shipping or 100 percent refunds, the LuLaRoe class action lawsuit says. There are numerous exceptions to the refund policy, and the plaintiffs accuse LuLaRoe of cheating consultants out of thousands of dollars by implementing this policy change.
Plaintiffs Stella Lemberg, Jeni Laurence, Amandra Bluder and Carissa Stuckhart claim they were drawn in by LuLaRoe’s mission and marketing and decided to become LuLaRoe consultants. By doing so, they made the initial requisite inventory purchases and sold LuLaRoe products.
Although they were assured by LuLaRoe on multiple occasions that they could cancel their business and receive back 100 percent of the price at which they purchased their inventory, when they attempted to return the clothing items, LuLaRoe informed them that they would only be entitled to a refund of up to 90 percent. Additionally, LuLaRoe said that it would only accept returns of certain clothing and it would not pay shipping costs.
The plaintiffs seek to represent themselves and a Class of consumers in the U.S. who were contracted as LuLaRoe consultants at any time between April 1, 2017 and Sept. 13, 2017, and who either attempted to return inventory to LuLaRoe under the 100 percent Buyback program and who were not given a full refund and full shipping, or who purchased additional inventory from LuLaRoe during the Class Period and will now not receive a 100 percent refund and free shipping from LuLaRoe.
The LuLaRoe buyback promise class action lawsuit asserts violations of California’s Unfair Competition Law, California’s Unfair Advertising Law, unjust enrichment, breach of contract, breach of the covenant of good faith and fair dealing, and conversion.
The plaintiffs are represented by Amber L. Eck and Aaron M. Olsen of Haeggquist & Eck LLP and Peter S. Pearlman and Kelly M. Purcaro of Cohn Lifland Pearlman Herrmann & Knopf LLP.
The LuLaRoe Buyback Promise Class Action Lawsuit is Stella Lemberg, et al. v LuLaRoe LLC d/b/a LuLaRoe, et al., Case No. 5:17-cv-02102, in the U.S. District Court for the Central District of California.
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64 thoughts onLuLaRoe Class Action Lawsuit Challenges 100% Buyback Promise
I also sent in my request to cancel by business in the beginning of September. They conveniently replied after the cut off date! I will need to join this class action.
Please advise of how to join.
I don’t want to be involved in a. Lawsuit or anything but LuLaRoe has misled people and I fell for their lies. I sent in my email telling them I wanted to resign and cancel my contract on October 1st and all Ive gotten was an email asking if I was sure about my decision and the second email saying to wait patiently for the next steps.
I just want to give them all this clothes back! I live 15 minutes from the corona warehouse and I’ve asked if I can just drop off the inventory there and I’ve been ignored. It’s stipid to ship back the inventory when I can just take it to them myself.
This 100% buy back policy should be honored for those of us who want to resign and not just for customers.
I’m so over this company and it’s lies to lure people to sign and be a consultant.
I seriously just want to send this stuff back!
They won’t even respond in a timely manner. I also heard it will take about 6 months to get our money back.
This was a huge mistake!
I am one of the many who resigned before September 13 & am left hanging. I would like to join this suit!
I agree, I am right there with you!
I am one of the many who resigned before September 13 & am left hanging. I would like to join this suit!
How do we join the class if this applies to us?
I was going to turn in resignation and they changed policy. Now I am trying roes as much as I can.
We were all set to turn in our resignation that day, the day my husband got home From a deployment. That exact night was when they announced it was no more. We got caught hoping we could get in within the 30 days notice to change a policy, but since they claimed it wasn’t a policy we didn’t get the 30 day period either. Good luck selling it all!
I am in the same boat. I submitted my resignation to cancellations@lularoe.com on 8/24/17. In less than 48hours, I was locked out of the back office, Build. I received confirmation from LuLaRoe on 9/7/17 that they received my request to resign and told me to fill out formstacks. I began to fill out the formstacks and by the time it was completed, they changed the buyback policy. Shortly after that I was told they weren’t even taking back inventory. Now I am at a huge loss as to what to do or where to turn for answers.
I had called LuLaRoe to ask about the 100% buyback including shipping and without stipulation as to which items I could return. I was advised that this is policy with no expiration date. Based on that information and seeing it posted by LuLaRoe I had made my decision to leave at the end of this year. I have told many people of my intention thinking “no expiration date”. Now they changed the rules again and will only accept certain items, not pay for shipping nor 100%. I based my decisions based on the misguided trust I had in the company. Not only that, they are now not accepting returns! One of so many deceived by LuLaRoe ?
I feel your pain!
Rejected over 10 damage items.
All with different excuses.
Allegedly policy changed on that too and nobody was informed.
Was told I needed three pictures of each item.
So did that
Still rejected as “damage not clear”.
I’m over them holding money hostage.
And taking out money from bonuses earned from them out of our returned product if you return it.
How is that legal?
I earned those bonuses and paid for my inventory but you’re going to deduct the bonus from my refund. No thanks llr! I’ll sell it off wholesale!
What happened to the happiness policy?
Are only California residents allowed to take part in this lawsuit?
Sounds like it’s CA and they mustnof signed on to be LLR retailers between April 1, 2017 & September 13, 2017
I resigned before the policy was changed and they accepted my resignation before that but now they say I’m under the 90% and I pay shipping. Worse than that when I ask about sending my inventory back I was told that they aren’t receiving inventory at the moment and don’t know when they will again. I signed up for this company under the impression that I would get my money back if I decided to leave and now they aren’t even honoring the 90% bc they are telling me they aren’t receiving inventory.
Me, too. I have an email stating I would receive 100% buyback and shipping. I sent in my formstacks in 9-1-2017
Me too. I sent my formstack in on 9/5. If there is a way to be a part of this lawsuit I would like to. They are really hurting a lot of people with this.
Me too. How do we join the class action?
I also sent in my request to cancel by business in the beginning of September. They conveniently replied after the cut off date! I will need to join this class action.
Please advise of how to join.