Clothing company gets "F" rating from BBB

The BBB is issuing a consumer alert about a popular women's clothing company.

Posted: Feb 6, 2019 12:19 PM

EUGENE, Ore. -- Dawn Johnson, with the Better Business Bureau, stopped by KEZI 9 News this week with an important story that  involves a clothing company called LuLaRoe. 

"We've actually processed hundreds of complaints against this company not just here in the Pacific Northwest but actually across the country," Johnson said, "So 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."

And because of the above findings, the Better Business Bureau has issued the company its lowest rating.

"So the BBB is actually giving this business an F rating," Johnson said. 

"What constitutes an F rating from the Better Business Bureau's perspective?" KEZI 9 News Anchor Bryan Anderson asked. 

"So there's a lot that goes into this, but the biggest thing that we're seeing is that we reached out to this company to address these complaints and these concerns and they have not responded as of yet," responded Johnson.

According to the BBB, consultants aren't the only ones complaining, who signed up to work for this company, customers are upset too.

"We're also taking complaints against LuLaRoe from consumers who actually purchased products that they say were damaged, in some cases, or they returned the products and were never refunded their money," Johnson explained. 

If you're involved with an independent consultant company, or thinking about signing up for one, the BBB has some red flags to protect your money.

"There are legitimate multilevel marketing companies. But then there are also some that we would call pyramid schemes. So some red flags you want to look out for are really steep startup costs. Are you having to invest a lot of your own money just to get going with this business? Are they really encouraging you with bonuses and extra cash that you can earn by getting new people to sign up and become consultants rather than your own sales, like selling the product? Then that's a red flag as well," said Johnson.

To learn more from the Better Business Bureau, click here

You can also find more information about LuLaRoe from going to their website

KEZI 9 News has reached out to to LuLaRoe for comment, and will update this web report when we hear back. 

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