New LulaRoe Policy Will Cost Some Consultants Thousands of Dollars

ByJayme Kennedy

Chances are, you know someone who sells LulaRoe. The clothing company came onto the scene 2014, the newest in a long line of MLM companies that promise success and financial independence to people (mostly women) who sign up as consultants. For a while, it seemed like everyone was on the LulaRoe train. The company thrived on social media. Sellers were encouraged to have “parties” on Facebook, inviting everyone on their friend list for a chance to buy a random pair of printed leggings. But merchandise quality and sales techniques complaints have mounted in the last year, and many consultants are leaving the company. Now, an abrupt change to their original return policy has many exiting consultants seeing red.

In April, the return policy for exiting sellers said they could receive 100% of their money back for unused merchandise. On Wednesday, the company changed the policy without warning. Sellers will receive 90% of what they paid. Additionally, they are responsible for all return shipping costs.

According to LulaRoe, this isn’t a new policy. They say the policy is reverting back to what it was before April. Still, for consultants who had begun the process of “GOOB” (going out of business), this change means they stand to lose thousands of dollars.

One of the most appealing aspects of LulaRoe was their 100% buy-back guarantee. Consultants typically spend between $5-8k to buy into the company; they are required to buy ALL of their merchandise up front.

In some cases, the new policy means exiting consultants will lose, big time. Amanda Roberts, from Maine, started selling LulaRoe to make some extra money for her family. She did well initially, meeting sales goals of $6000 a month. Ultimately, she found that the clothing company wasn’t a good fit for her and her family. The policy changes means Amanda will be out around $2000. In addition to the change in buy-back and return costs, seasonal and special edition items are not refundable. So if a consultant has a box full of hideous Christmas leggings, they’re out of luck.

Obviously, the change has upset A LOT of sellers. Many consultants have been attempting to nail down their refunds (submitted before the change) to no avail. They’ve taken to social media to vent and get answers.

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https://twitter.com/LipChickswSteph/status/911266541710147584

https://twitter.com/PlusWithPride/status/910470885148102656

The company promised that the old policy for exiting sellers who started the process before last week would be honored. But it would appear that lots of people still haven’t seen their money. LulaRoe has released a statement regarding the issue: “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.” 

MLM jobs have certainly helped moms contribute to their family’s income. But there are also drawbacks, and like any investment, sinking thousands into leggings with no guarantee of return on investment is a HUGE risk. Hopefully those who are waiting for their money from the company see some resolution soon.

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(Image: Instagram / @lularoe)

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