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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 would also like to join
I want to join! $14k I submitted returns for! i sent in my resignation in July!
I would like to join as well. I resigned on June 4th, 2017. Did not get a response until the middle of August, when I received emails 5 or 6 times within 2 days saying the exact same thing. I talked to them numerous times to get my labels, during these conversations I was given info on other consultants, told I wasn’t who I am, told I was never a consultant, called by other peoples names, told I resigned in April (that was someone else), told I didn’t do my formstacks, then told oh yes I have them right here – honestly I could go on and on. Finally after many, many calls, emails, Facebook messages I received an email on September 7th saying my tags/labels would be sent today or tomorrow. They never arrived and they changed their policy. So I have 7 boxes of inventory that have been sitting in my basement since June, totaling almost 11k. I am still arguing with them over them standing behind their 100% return policy with shipping back paid by them.
I’d like to join this. I’m $25,000 in debt from this company and my team assured me that I needed to use my mortgage money to invest in more and more inventory so I could sell more and I had nothing to lose since the buyback program was a risk free way of buying as much inventory as we could max ourselves out at. Now I am sitting on tons of inventory and my team has since blocked me for asking any questions.
I have been continuously ignored and strung along with no answers. I submitted my original resignation august 15 the way they wanted us to only to have my case closed when they changed their policy on September 13. Reopened it and still haven’t heard anything about sending it back. Their quick to respond in cancelling our consultant status but not to get our stuff sent back and money refunded. My family needs this money I just want this over with. How can we join this because frankly I’m over this.
Is there anything in this lawsuit about the happiness policy for consumers, not consultants? They screwed us over too.
Please contact me about this suit. I am currently sitting on roughly $6k worth of inventory I had stored to send back, only to have the rug pulled out from under me. I would very much like to participate. I had submitted my resignation on August 7th, had it approved, and submitted my formstacks on September 10th.
I have submitted my formstacks and have countless emails from them. They have been giving me the run around. How do I join this lawsuit?
I sent my request 8/15/17 and again 8/19, and 8/31/17 after being given the run around about Erin emails and someone was going to contact me and to keep checking my inbox, and then the announcement. I’m very interested in this. Tired of LLR giving us the cold shoulder and ignoring us and most of all being deceitful!
I sent my stuff back in June 2017 and have yet to receive my refund and no one gets back to me. I’ve waited on the phone 4 hours plus at a time to have them tell me I need to speak to Accounting, but that I’d have to wait additional hours to speak to them, but can’t leave my number for them to call me back because they are too busy with their work and backed up. Then they tell me that I can contact Michael who is the head of accounting and gave me his email addy but that he was backed up too so no guarantee if and when he’d get back to me and he hasn’t after i’ve tried emailing him. Please email me (Autumn) with details on how to join this class-action lawsuit. Auts63@hotmail.com or lularoeautumnmatsuwaki@gmail.com. thank u!