Since January 2014, more than 3,600 Washingtonians joined LuLaRoe’s network as retailers. Washingtonians deserve fairness and honesty - and accountability for those who don’t play by the rules.”Įxisting LuLaRoe retailers recruit and sponsor new independent retailers who join LuLaRoe’s network to sell the company’s clothing. “As a result, thousands lost money and two individuals made millions from their scheme. “LuLaRoe tricked Washingtonians into buying into its pyramid scheme with deceptive claims and false promises,” Ferguson said. The remaining $750,000 will partially reimburse the Attorney General’s Office for the cost of investigating the conduct and bringing the lawsuit. Every Washington retailer who lost money under LuLaRoe’s pyramid structure will receive restitution. The Attorney General’s Office estimates that approximately 3,000 Washingtonians will receive checks. For example, LuLaRoe must publish an income disclosure statement that accurately details retailer income potential.įerguson will provide $4 million to Washingtonians who were deceived by LuLaRoe’s business practices.

Additionally, LuLaRoe must be more transparent with retailers to avoid future deception. The resolution, filed in King County Superior Court, prohibits LuLaRoe from operating a pyramid scheme. In addition to LuLaRoe’s deceptive misrepresentations regarding profitability, Ferguson’s lawsuit challenged LuLaRoe’s unlawful bonus structure and unfair refund policy. Instead of profiting, many of the company’s independent retailers were left with debt and unsold Are you a Washington retailer with questions about our case?Ĭontact they could not return without taking a loss.įerguson’s lawsuit asserted that LuLaRoe violated the Washington Antipyramid Promotional Scheme Act and the Consumer Protection Act. Later in the same call, she claimed LuLaRoe has “a bunch of people” that can sell up to $150,000 per month. For example, one LuLaRoe executive claimed that “so many of our retailers are making amazing money doing this part time” and “a huge number of people” sell $15,000 to $20,000 each month.

In January 2019, Ferguson filed a lawsuit against LuLaRoe and several of its executives, asserting that the defendants made unfair and deceptive misrepresentations regarding the profitability of being an independent retailer for LuLaRoe. SEATTLE - Attorney General Bob Ferguson announced today that LuLaRoe will pay $4.75 million to resolve Ferguson’s consumer protection lawsuit asserting that LuLaRoe, a California-based multi-level marketing business that sells leggings and other apparel to a network of independent retailers, was operating a pyramid scheme.

$4 million going to help Washingtonians deceived by LuLaRoe

Million dollar pyramid wii sales