The Washington state attorney general has filed a lawsuit against the California-based clothing company LuLaRoe contending the business is a pyramid scheme.
Attorney General Bob Ferguson announced the lawsuit filed in King County Superior Court, saying thousands of Washington residents have lost money selling clothes for LuLaRoe. Ferguson says the company misrepresented and failed to honor its refund policies in violation of the state Consumer Protection Act.
The lawsuit contends LuLaRoe tricked consumers into buying into its pyramid scheme with deceptive claims of high profits and refunds for unsold merchandise.
More than 3,500 Washington residents have become so-called “Independent Fashion Consultants” for LuLaRoe since the start of 2014, and fewer than 2,000 are still active with the company.
Ferguson is asking a judge to stop LuLaRoe from continuing what he says are unlawful business practices in Washington state. He also wants a judge to order the company to pay restitution to customers.
A LuLaRoe spokesperson said the claims in lawsuit are without merit and the company will fight vigorously against them. (AP)
