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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
Please add me asap
They will not refund my money and are keeping my inventory because I didn’t have a “authorization” to ship my items. See, I had to send my inventory to them because I was in a hostile situation at the time. So my husband and I were forced to move our family across country to be safe. I couldn’t keep the inventory with me because we became homeless overnight. So I decided to send them my inventory, otherwise I would have had to leave it behind. At the time I hadn’t received a response to the written cancellation requests I had sent to them via mail. So the most logical thing for me to do at that time was to mail LuLaRoe 3 boxes of inventory even though I had not gotten a response from them. I never thought LuLaRoe would do this. They emailed me today to tell me that I will not be getting a refund, and they are keeping my inventory because it was an unauthorized shipment. So now I am out thousands of dollars because practically they are stealing from me, I mean…I paid for that inventory it does not belong to them. Way to empower women LuLaRoe!!
I need help!
I would join this suit as well. They declined to take any of my inventory back. Stuck with 1,000 pieces to try to sell off at a huge loss.
I would like to join this class action lawsuit. How do I join?
I sent my inventory back almost 5 months ago and have yet to receive a check or any updates on when my check is coming. I am at a loss as to what I am supposed to do.
You can contact class counsel with your questions. Counsel is listed at the bottom of the article and can be Googled for contact information.
After months waiting for my refund I was offers less than the 90% they say they are offering! And I submitting to close my business before the change of refund!
I want to join this class action lawsuit. Can do I do that?
I too fell victim to this policy change and better yet I did not receive a return authorization number to this day. I followed LLR resignation policy on August 27th. I received acknowledgement 3 days later. After 2 weeks of no further correspondence I placed a call only to be told I should be hearing back soon ($10,000 worth if merchandise at wholesale prices I am waiting to ship back), 2 weeks later I called back again only to be told that they were back logged due to “80,000” resignations and they were having a hard time getting to everyone. When I asked about the “policy change” of 100% refunds and shipping labels I was told I did not meet the 8/13 deadline.
No further correspondence fromLLR until a few days ago when I received an email that my case had been reassigned and I would need to fill out the paperwork (again) to continue the process. Almost 3 months later and I am still no further in the process! Extremely frustrating!
Any help would be appreciated
Thank you
My daughter is also waiting for her money . Two months now. What phone number did you call, please
I too was a victim of this so-called policy change.
How do I become a part of this! I was a victim of their scam!!