Sister Wives stars Meri and Christine Brown’s livelihood is in jeopardy if the clothing company they work for, LuLaRoe, is involved in a lawsuit after being hit with an illegal pyramid player.
In January 2019, the State of Washington sued LuLaRoe, founders Mark Stidham and DeAnne Brady, and other defendants for illegal pyramid schemes, misleading income claims and more.
In the lawsuit, LuLaRoe is accused of “primarily rewarding participants in recruiting new participants rather than bona fide retail sales, with the result that a substantial percentage of participants lose money.
LuLaRoe’s “pyramid scheme” business model and compensation plan and its marketing activities presumably show that most of the consultants in Washington lost money.
The plaintiff has asked the Court to issue a “permanent injunction enjoining and restraining” the defendants and their employees from “continuing or engaging in unlawful conduct. Plaintiff also asks the Court to issue a fine against the company in the amount of $2,000 for each violation, plus restitution for affected customers.
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Can’t think of a better way to just chill. Reading in a park! Getting some sun. Staying apart from people, actually, I really miss talking to strangers. I miss going to the grocery store and talking to everyone. So much so that my girls ask how many friends I made that day. That’s how much I usually talk to people. This is NOT a situation for extroverts! #covid19 #reading #becauseoflularoe #lularoeretailer #tiredofsocialdistancing #sunshine
The Washington Attorney General said in a press release at the time of the lawsuit: “LuLaRoe tricked consumers into buying in his pyramid game with deceptive claims of high profits and refunds for unsold merchandise.
“Instead, many Washingtonians lost money and were left with piles of unsold merchandise and broken promises from LuLaRoe. It’s time to hold LuLaRoe responsible for his deception.”
In LuLaRoe’s response to the lawsuit, the defendants “denied” that they were carrying out an illegal pyramid scheme and asked for the complaint to be dismissed. The case remains ongoing, as there is a hearing set for August on defendants’ motion for summary judgment.
Improved Business Service gave the company a B-rating, as LuLaRoe was hit with poor reviews.
A consultant demanded earlier this year: “LuLaRoe still owes me $120.66 from a credit for returned clothing. I had that credit in my account when I stopped being a consultant for them on 9/18/2018 and was told it would be refunded to me. After many attempts I still haven’t been paid”.
The company responded by advising the person to contact the accounting department. When the consultant replied that she had already done so, the company said they would spend the refund at the end of the day.
A second customer complained: “I ordered XS Irma from a LuLaRoe consultant. When I received XS Irma from her, it looked big. I already have old XS Irma and I compared the two. Indeed her Irma is wrong. I don’t want it because it’s too big. She said sorry can’t help it.” The company responded by advising the customer to review the store’s return policy.