GUILFORD COUNTY, N.C. - You see these leggings walking around, very recognizable as part o the popular women's clothing brand LuLaRoe, known for its bold patterns.
But recently, the company has been getting more attention for a lawsuit filed – alleging LuLaRoe of being a pyramid scheme. That 27-page lawsuit filed this week in California boils down to individual sellers who thought they'd make a ton of money but didn't. This comes after a separate legal action filed earlier this month over the refund policy.
But not everyone is skeptical. Many consultants are doing just fine, and love the brand they sell.
To stitch together some extra cash, Angela Moran started selling LuLaRoe two years ago.
“It started as a side job,” she said, “But then in June my husband got laid off and became a real blessing to our family because I could work as hard as I needed to, to help provide income for our family.”
Moran’s philosophy is making the customer feel good about what they’re wearing. She says that is her favorite part – getting to know the people she’s selling to.
“my number one focus is not selling. My number one focus is women, and investing into their lives, I love to get to know my customers, I love to provide great customer service, and once I know them I can help them find the LuLaRoe that will make them feel beautiful,” she said.
But some feel uneasy about the business. A new lawsuit in federal court claims the company is a pyramid scheme. This comes after complaints started in Augusta and September when the company changes the return policy for consultants. One former seller learned - she wouldn't be getting a full refund for hundreds of items returned.
“I just started crying,” said Amanda Morgan, who decided to stop selling the brand after a year.
LuLaRoe is responding to concerns, telling CBS news it's a legal multi-level marketing company, writing:
"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 will vigorously defend against [these allegations] and are confident we will prevail."
Moran says her business is booming. So, she went further – and is now taking it on the road.
“We converted a 1992 Bluebird bus into a mobile boutique,” she said.
She’s happy she had something to fall back on, and now, is looking ahead, with hopes the business will continue to take off.
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