Tag Archives: luluroe

How to get a refund from LuLaRoe for your ripped leggings

LuLaRoe is refunding customers following complaints about the quality of the company’s clothing, as Business Insider reported earlier.

The policies include the “Make Good” program — which applies to purchases made between January 1, 2016 and today — and the “Happiness Policy,” which applies to all future purchases.

Here’s a breakdown on the specifics of each policy, and how customers can get a refund, credit, or exchange.

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The “Make Good” program:

  • Applies only to purchases of defective merchandise made between January 1, 2016 and April 24, 2017.
  • Customers can apply for a replacement, gift card, or cash refund by contacting the retailer who sold them the product and arranging to have the product and proof of purchase returned to them. The proof of purchase must include a copy of the original receipt or a copy of a bank statement reflecting the purchase and identifying the retailer. Customers will not be charged for return shipping.
  • If that retailer refuses to help them, customers can contact LuLaRoe through its “Make Good” website, and the company will connect them with another retailer who can process their claim.
  • Customers can also apply for a refund in the form of a personal check or a LuLaRoe gift card by making a claim directly to LuLaRoe on its “Make Good” website. The website contains a form for submitting claims. 
  • Claims must be submitted no later than July 31, 2017.

The “Happiness” policy

  • Applies to purchases made on or after April 25, 2017.
  • Within 30 days of purchase, customers can return products for any reason to the retailer they purchased from to receive a full refund, credit, or exchange.
  • Within 90 days of purchase, customers can return products for any reason to any retailer to receive a credit or exchange.
  • Customers can also apply for a refund in the form of a personal check or a LuLaRoe gift card by making a claim directly to LuLaRoe on its “Happiness Policy” website. The website contains a form for submitting claims. 
  • Customers must provide their original purchase receipt to complete a return. Customers will not be charged for return shipping.
  • If a product has a manufacturing defect in materials or workmanship, customers may be entitled to a return any time under the company’s new limited warranty. The limited warranty applies to items purchased after April 24, 2017.

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Source:

http://www.businessinsider.com/how-to-get-a-refund-for-lularoe-leggings-2017-4

Is LuLaRoe a Pyramid Scheme?

A supplementary income may be necessary for your financial health. Perhaps it is even simply desired as a way to reach goals of financial freedom faster in the household. At some point, you may be approached by someone you know or are acquainted with to join them for a”financial opportunity.” One of those opportunities we imagine you have been asked to join is LuLaRoe (LLR). But, is LuLaRoe a pyramid scheme?

 
 
 

What Is a Pyramid Scheme?

A pyramid scheme focuses primarily on recruiting other individuals with the promise of quick, substantial profits and little effort supposedly needed to do so, the Better Business Bureau explains. Those that do not involve selling any products but only recruiting more investors would be similar to a Ponzi scheme.

Pyramid schemes that involve products encourage distributors to recruit sellers under them who pay a certain amount for a start-up kit or initial package. The recruiter will then retain a percentage of those sales along with a percentage of products sold. However, they are encouraged, usually by those who recruited them, to grow their network, often referred to as “downlines,” in order to earn even more money. Thus, your profit is primarily dependent upon how many people you can add on to the scheme rather than the sales of products.

This may sound comparable to a multi-level marketing (MLM) company, which requires you to buy in for a start-up kit or initial items but provides no guarantees. But, the real difference is pyramid schemes are illegal. So, is LuLaRoe a pyramid scheme or an MLM?

Is LuLaRoe a Pyramid Scheme?

LuLaRoe sells women’s clothing, such as t-shirts, dresses, skirts, cover-ups, and more. But, their true bread and butter that made them popular are their leggings, which typically come in unique patterns and colors. Their slogan is “where fashion meets comfort,” as their items are also known for being comfortable yet fashionable.

Women are brought on as sellers to sell these items from the comfort of their own home. In fact, the company was started with the stay-at-home mom in mind. Another factor about the company is that all items are sold strictly through direct sales and not through any brick-and-mortars. When individuals sign up to sell LLR clothing, they must pay in roughly $5,000 for a starter kit, which gives them their first set of inventory as well as a coach or “upline” to help them through the process. Those who have downlines do get extra cash on top of commission from selling clothes.

Many women see much success from selling LuLaRoe clothing, but many still question its validity. LuLaRoe describes itself as an MLM, but several pyramid schemes disguise themselves as MLM’s or direct sales companies too. So, let’s take a look at what characteristics to look out for in pyramid schemes based on information provided by the Federal Trade Commission and see how LuLaRoe compares:

  • Pyramid schemes issue commissions based on the number of people you recruit, not on product sales to consumers. LuLaRoe distributors do earn money from clothes sold to customers, but they also receive bonus checks and commission for the number of people on their team or downline. You continue to move on to the next level with the more people that you recruit under you.

 

  • The FTC mentions that pyramid schemes require you to purchase a lot of inventory. In LLR, you do need to purchase inventory regularly in order to continue to make and increase sales. Your initial investment does also include a starting inventory. Although you do not necessarily have to pay more than $5,000 to get started, it may be advised to do so in order to be more successful. You also only have control on the styles of clothes you want to carry but not on the colors or patterns.

 

  •  In order to stay on good terms with a company that is a pyramid scheme, you may feel or be obligated to buy items that you do not necessarily need. As a LuLaRoe fashion consultant, you may need to buy extra items like hangers and a nice camera to help with your marketing images, but this is not required to stay in good standing with the company. They do actually also provide you with many marketing tools you will need to get started like images and tips on using social media to grow.

Conclusion

You are likely to lose money with a pyramid scheme, but this can also be true of MLMs. Making money with LLR is not impossible, but you do make more when you recruit people. Because of this, LuLaRoe is likely on the line of being a pyramid scheme, but because much of your profit can also come from directly selling products to consumers, the clothing company may be a valid opportunity. Just know that with any direct sales position, you are directly responsible for your own success.

Before signing up for any MLM “opportunity,” make sure to ask a lot of questions to ensure you are not actually ending up in a pyramid scheme. Determine the claimed primary source of making a profit, see if the products they offer sell well and what the profit margin is, and map out whether or not recruiting is the only way to make money (regardless of what they say).

LuLaRoe is getting sued over claims that its popular leggings rip ‘like wet toilet paper’

LuLaRoe is facing a class-action lawsuit over claims that its popular leggings tear and develop holes after as little as a few hours of wear.

The lawsuit, brought by two LuLaRoe customers, accuses the women’s clothing brand of ignoring thousands of customer complaints about the quality of its leggings and knowingly selling defective merchandise that rips like “wet toilet paper” to enrich the company’s top executives.

The suit also claims that LuLaRoe refuses to issue refunds directly to customers for defective leggings, and instead instructs them to address the problems with its sellers, or “fashion consultants.”

But when sellers turn to the company for refunds of defective merchandise, they also face a roadblock, according to the suit. 

“Thousands of customers across the United States are now stuck with defective products because Defendants will neither issue refunds or make exchanges for customers and instead steer customers to the fashion consultants to deal with defective or damaged products,” the lawsuit states. “Unfortunately for customers, Defendants will not make refunds to fashion consultants for defective products, and impose various barriers for exchanges. As a result, most fashion consultants will not take back defective products from customers.”

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LuLaRoe did not immediately respond to a request for comment.

The clothing company has grown rapidly over the last two years, with sales soaring an estimated 600% to $1 billion last year, according to another recent lawsuit that accuses the company of charging customers the wrong sales tax. 

LuLaRoe doesn’t sell any products in stores. The company relies on “consultants” to sell the clothing it makes at parties held in their homes. The number of consultants selling LuLaRoe products grown from 38,277 in September to nearly 80,000 today, according to data obtained by Business Insider. 

Plaintiffs Julie Dean and Suzanne Jones are seeking compensation for themselves and all customers who purchased foreign-manufactured LuLaRoe leggings after March 31, 2016. They are seeking an award for damages, plus reimbursement of court costs and attorneys’ fees.

Dean, of Boston, Massachusetts, says she wore a pair of LuLaRoe leggings for only a couple hours before they developed tiny holes throughout.

” Another patterned pair developed a hole so big she could put her finger through them,” the lawsuit states. 

Jones, of  Lafayette, California, said she received a pair of leggings that were incorrectly sized. 

“One pair of the leggings she could not even get past her knees because they were so small as if they were manufactured for a child,” the lawsuit states. “Two other pairs of leggings developed holes when she pulled the leggings on with her fingers.”

The lawsuit accuses LuLaRoe of eight counts related to unfair, illegal, and fraudulent business practices, as well as violating laws meant to protect customers and vendors from such practices.

Source:

http://www.businessinsider.com/lularoe-leggings-lawsuit-2017-3