LuLaRoe received an F rating by the Better Business Bureau earlier this week. A representative of the BBB spoke with ABC affiliate KEZI in Portland, Oregon to share the details behind the rating. The F rating is the result of nearly 400 complaints against the company and LLR failing to follow up and resolve the issues with consultants and consumers.
Dawn Johnson with the BBB spoke with KEZI anchor Bryan Anderson about LLR’s poor rating and contributing factors. According to Johnson, the BBB has processed hundreds of complaints in the Pacific Northwest and across the nation.
In the complaints, consultants allege that they returned merchandise and never received their promised refund. Johnson said,
“So the BBB is actually giving this business an F rating.
We’ve actually processed hundreds of complaints against this company not just here in the Pacific Northwest but actually across the country. This business sells leggings and other apparel and it employs independent consultants across the country to be their sales people for them.
And what we’re seeing from these complaints is that a lot of these independent consultants are saying that they aren’t receiving the money that they were promised, in some cases, and they’re also saying that they returned unused merchandise and were never refunded for that, in some cases.”
While the number of complaints is concerning, the BBB said the company’s response is the primary reason for the rating. For months, the BBB has reached out to LLR to respond to the issues posed by consultants. However, LLR has never acknowledged nor attempted to resolve the disputes.
Consultants aren’t the only ones fuming with Lularoe. Customers have filed numerous complaints to the BBB for receiving damaged goods. When the customers returned the products to the clothing company, many say they never received a refund.
Attempts to reach LLR by ABC went unanswered. As of this morning, the BBB lists Lularoe with an NR rating. The rating says, “The business is in the process of responding to previously closed complaints.”
Whether the NR change came after the initial report yesterday is unknown.
According to the LuLaRoe page on the Better Business Bureau, there have been 389 complaints made against the company in the past three years. Many of the most recent allegations are from former consultants that returned merchandise and never received a refund.
Some consultants have waited more than a year to receive checks totaling more than $5,000.00. LLR responds to the complaints stating they have issued a check for the refund. However, consultants refute the response and say that the accounting department had no record of releasing or mailing checks.
An example of a complaint below outlines the length of time one consultant has waited for a refund. In this case, the former consultant still had not received a refund after almost six months.
While inventory returns can be time-consuming for any business, the fact that hundreds of consultants are waiting months to even a year for a refund seems unethical. With LLR unable to refund the consultants, the growing case that the company is on the verge of financial collapse continues to grow.
LLR is currently facing multiple class action lawsuits by consultants for running a pyramid scheme, improperly charging sales tax, and failing to refund consultants. Their largest clothing supplier is suing LLR in California for more than $49 million in unpaid goods. Finally, the state of Washington announced a lawsuit against them in January for running a pyramid scheme and defrauding thousands of citizens.
In the midst of their legal wranglings, LLR has been tight-lipped and has vehemently denied all the allegations against them. The company continues to recruit new consultants and launch new products.
LLR’s cruise ship filled with buttery soft and ugly patterned leggings is sinking. However, the company is somehow managing to cling to a life raft and have yet to file for bankruptcy.
*Katie Joy is a columnist and hosts Without A Crystal Ball on Patheos Non-Religious Channel. She writes articles on parenting, disability advocacy, debunking pseudoscience, atheism, and crimes against women and children.
She co-hosts the YouTube show, “The Smoking Nun,” with Kyle Curtis. The show airs weekly and tackles pseudoscience, current events, and crime stories.
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