LuLa Roe will have to pay out $110,000 following a settlement with the Pennsylvania Attorney General’s Office over complaints the California-based clothing company was overdue on refunds for returned merchandise.
Announcing the settlement Friday, Attorney General Josh Shapiro said his office had received numerous complaints from independent sales consultants across Pennsylvania who sold clothing on the company’s behalf.
“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 had more than 6,700 independent sales consultants across the commonwealth, who Shapiro said spent thousands of dollars to start their businesses under the belief it was risk free.
“I invested a lot of money in this business and didn’t get back what I put in,” said Lesley Black, a former LuLaRoe consultant. “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 voluntary settlement also prohibits the company from “further deceptive acts” and requires written refund claims to be processed within 90 days from when they are received, according to Shapiro. Although all Pennsylvania refund claims should now be processed, the attorney general encouraged anyone who continues to have issued with LuLaRoe to file a complaint at www.attorneygeneral.gov or by emailing email@example.com.