PHILADELPHIA (CBS) – California-based clothing company LuLaRoe has settled a lawsuit claiming the company owed several Pennsylvanians tens of thousands of dollars for returned merchandise. Attorney General Josh Shapiro announced Friday a settlement imposing injunctive relief and a monetary payment of $110,000 against the multi-level marketing company.
The civil lawsuit was filed after the Commonwealth received multiple complaints from Pennsylvanians who were owed overdue refunds.
“LuLaRoe misled and let down working people who were trying to start a business, or earn a little extra money, and we’re holding them accountable,” Shapiro said. “LuLaRoe’s practices helped them make money, while forcing everyday people to risk savings and livelihoods. By withholding refunds, sometimes for more than a year, LuLaRoe broke the promise they made to Pennsylvanians and we’re stepping in to put an end to it.”
LuLaRoe sold clothing to consumers nationwide through independent sales consultants, including more than 6,700 Pennsylvanians.
According to the suit, LulaRoe recruited women to sell its goods from home with the promise of a no-risk opportunity but left thousands of them with unreturnable merchandise. Many consultants spoke of unreasonable delays, at times having to wait more than a year for a refund.
“I invested a lot of money in this business and didn’t get back what I put in,” Lesley Black, a former LulaRoe consultant, said. “Because they were so backlogged with consultants leaving, my paperwork to receive my refund wasn’t reviewed for several weeks, if not months, after I left the business. LulaRoe didn’t keep their promise to consultants, and didn’t care if we left, stayed, or even threatened to sue.”
The company has been sued multiple times in other states for deceptive practices.
While LuLaRoe has represented that they have processed all pending refund claims from Pennsylvanians, consumers who believe they continue to be victimized by LuLaRoe should file a complaint at www.attorneygeneral.gov or email email@example.com.