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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
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Phillip Mccarthy
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I submitted my resignation in JULY! It was accepted, my Build and Bless accounts were closed and my formstsck to return all my inventory was submitted to them the beginning of August. They stated in all communications that they would send shipping labels and I would receive 100% of my money back. The labels never arrived and had to call day after day in September and sit on hold for 6+ hours each time to finally be told that “if we didn’t receive labels by now, we aren’t getting them and not receiving 100% back.”
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What if we haven’t submitted anything to cancel our account, but we signed up under the pretense of there being no risk to join? It’s still very misleading and I’m most likely going to close up shop. I would have done it sooner if I knew they were going to pull such an unfair stunt.
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Good luck excited to see how it turns out. I will be following as I have been waiting for over 2 months for a response and love that they preach customer service but are delayed to acted on it when it is their turn to provide such service.
I gained weight on Diet Coke
Haha. Wrong page.
How can I join? I was screwed out of 100% buyback promises and shipping!
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
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I am also interested in joining this. I submitted by resignation. On September 1 and had no steps given on how to return the items. Only after repeated calls and emails I got “we are working on revising the policy.”
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
I would like in on this. I have this GS that they promised they would take back and would not. I’m so angry with lularoe