Jacksonville women say they fell victim to LuLaRoe pyramid scheme

Many Jacksonville women allege what the lawsuit says: LuLaRoe is a pyramid scheme.

JACKSONVILLE, Fla. - Hundreds of women in Jacksonville are making the same accusations against LuLaRoe, saying they fell victim to what seems like a pyramid scheme.

Tiffany Bueno recently got out of the LuLaRoe business. She says many of her Jacksonville friends are still stuck with a huge inventory and little to no profit.

“Everything is kind of kept secret,” Bueno said. “The leader, the CEO, bullies everyone down, you have to say this, you have to wear this, you have to do this.”

She says the stress of it all is impacting many families. She said that’s one of the reasons she got out; that, and the fact that she said it’s a “cult-like atmosphere," a sentiment that was echoed by others sellers on the First Coast.

Local Business Attorney Eric Kolar says if you’re a seller, you’ll get an invitation to be a part of that class action lawsuit that has been filed against the company, claiming it is a pyramid scheme.

“If it’s easy to get into, there’s not a lot of recourse to get anything back,” Kolar said.

He warns of getting into such companies unless you carefully reach and understand the fine print. Now, he says, sellers who feel like they were cheated have few options and the options they do have are costly.

“It’s much more expensive to travel to California to litigate your rights,” Kolar said.

You can file your own lawsuit in Duval County, but he says you have to make sure it’s in your contract before you take any steps.

LuLaRoe sent First Coast News the following statement after our story aired:

"LuLaRoe has grown exponentially over the last four years. Our success has made us the target of orchestrated competitive attacks and predatory litigation. We take all litigation – regardless of its lack of merit – seriously.  We have not been served with the recent complaints, but from what we have seen in media reports, the allegations are baseless, factually inaccurate and misinformed.  We will vigorously defend against them and are confident we will prevail.

LuLaRoe’s focus is to support the more than 80,000 Independent Fashion Retailers who make retail sales to consumers.  Our Leadership Bonus Plan only includes incentives that reward retail sales to consumers.  As a result of our business model, Independent Fashion Retailers have sold more than $2 billion of LuLaRoe apparel directly to consumers from January to October 2017, far more than double the same period in 2016.  These sales have put hundreds of millions of dollars in the pockets of Independent Fashion Retailers across America who are building their own small businesses."

© 2017 WTLV-TV


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