CHARLOTTE, N.C. - It’s the clothing brand you've probably had at least one of your friends try to sell you online: LuLaRoe.
It relies on multi-level marketing sales, where individuals sell the clothes and hope to make money.
But many people who have bought into the program are going to be left thousands of dollars in debt thanks to a new policy.
“We have a lot of expenses and crazy kids that cost a lot of money,” Amanda Roberts said.
A wife and stay-at-home mom to three little girls, she wanted a way to bring in a second source of income.
So last November, Amanda signed up to become an independent fashion retailer with LuLaRoe.
“I thought it was a good opportunity,” she said. The company allow individuals to buy clothing wholesale and resell online or in person.
But it’s not cheap to start the process. “The initial package is about $5,000 to $8,000,” Amanda told us.
Still she said it was worth it for a while, hitting her sales goal of $6,000 in her last month.
But the job was taking her away from her kids. And she said the clothing business ultimately wasn’t the right fit for her and her family. So Amanda signed papers to terminate in July.
LuLaRoe’s previous policy stated retailers would be refunded 100% of all returned pieces as long as they were in new condition.
But that policy suddenly changed after hundreds of women had already resigned.
”Oh my god. I just started crying,” said Amanda Morgan, who was working out of Maine.
The company now states retailers will have to pay to ship their items back and will only receive 90% of what they paid.
“It’s really frustrating,” Amanda Roberts said.
She will likely lose $2,000. And to make matters worse, she said she can’t even get a status update on when she’ll get the rest of her money back.
Hundreds of other women online also said they are waiting for their refunds.
“We’re told the accounting department doesn’t have phones. They kind of just disappeared,” Amanda explained.
In a statement LuLaRoe says:
LuLaRoe provides a fair and generous path to Independent Fashion Retailers who want to exit the business. Last week, we simply reiterated a long-term written policy each Retailer agreed to when he or she signed up. We had temporarily provided a waiver on some of the policy requirements between April and September 2017.
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