Those colorful leggings and flowing tunic tops seem to be everywhere. Women’s fashion can thank LuLaRoe for providing comfortable clothing for any shape or size. Even more appealing is that the clothing is often distributed to and sold from private homes by neighbors and friends in Tennessee and across the country. Unfortunately, the LuLaRoe company has apparently failed to honor important terms in its contract with consultants, many of whom are joining mass torts claims.
Many multi-level marketing operations require their consultants to purchase a demo package of products when they join the business. LuLaRoe requires its more than 70,000 consultants to buy $5,000 worth of yoga pants, tops, dresses and other items for their startups. Consultants, mostly women looking to supplement the household income, often operate their businesses from home through Facebook and other social media outlets.
When some of the consultants found the work was too time-consuming or not profitable, they returned the unsold clothing, expecting a refund from the LuLaRoe company. Some have waited three months or longer without a word regarding their refund. Others received a disappointing 90 percent of what they invested after paying the shipping cost to return thousands of dollars worth of inventory.
In several states, LuLaRoe consultants are joining in mass torts claims to recoup the losses they have incurred. Often, when a business owner is not willing to listen to the complaints of individual clients, a class action will get his or her attention and bring about a resolution that an individual may not have achieved alone. For guidance in how to participate in this type of action, it is best to consult a knowledgeable Tennessee attorney.
Source: wcpo.com, “Upset LuLaRoe sellers ask ‘Where’s my refund?’“, John Matarese, April 25, 2018