Washington State Attorney General Sues LuLaRoe Clothing
The Washington State Attorney General has filed a lawsuit against the California based clothing company LuLaRoe accusing it as a pyramid scheme.
Attorney General Bob Ferguson announced that he filed the lawsuit in King County Superior Court and issued a statement on Friday, saying thousands of Washington residents have lost money selling clothes for LuLaRoe.
In reply to the lawsuit, the company’s spokesperson said that the suit lacked merit and they would fight the lawsuit vigorously. “We are enthusiastic about the strength of the LuLaRoe brand, strong consumer demand for our new apparel designs and enhancements, and the passion of tens of thousands of Independent Fashion Retailers across America,” the company spokesperson, who declined to give a name, wrote in the email.
The Attorney General Ferguson also alleged the company of misrepresentation and failure to honor its refund policies in violation of the state Consumer Protection Act.
“LuLaRoe tricked consumers into buying into its pyramid scheme with deceptive claims of high profits and refunds for unsold merchandise,” said Ferguson in a prepared statement. “Instead, many Washingtonians lost money and were left with piles of unsold merchandise and broken promises from LuLaRoe. It’s time to hold LuLaRoe accountable for its deception.”
It should be reported here that about 3500 Washington residents have become “Independent Fashion Consultants” for LuLaRoe since the start of 2014, and about 2000 of them are still active with the company.
Ferguson will be asking a judge to stop LuLaRoe from continuing what according to him are unlawful business practices in Washington State. He also wants the company to pay restitution to customers on the court order.