LuLaRoe Refund Policy Causes Confusion and Anger Among Sellers

LuLaRoe is known for its flamboyant leggings and other clothing items, but a change in company policy has prompted some sellers to protest.

Amanda Goldfarb spends much of her time selling clothes from LuLaRoe through a Facebook page as an independent fashion retailer. It's work she can do from home, as she takes care of her son.

"I really wanted to be home with him, so my husband and I looked into a couple of different multi-level marketing companies and LuLaRoe was on the upswing. Everybody wanted it," she said. 

Goldfarb began selling in December. She figures she's purchased about $30,000 worth of clothing.

"We did very well, we were in the top one percent of the company," she explained.

To get those sales, Goldfarb said she had to put in up to 12 hours a day. Last April she heard about a special offer for retailers who opted to resign and had leftover inventory.

"They said, 'you know what, we're gonna pay back a hundred percent. We're gonna pay your shipping back to the warehouse,'" recalled Goldfarb.

She estimates she had about $20,000 worth of LuLaRoe clothing still unsold.  So, she shipped them back and was told in August that "returns are processed in the order they were received." 

Come September, there was another change in LuLaRoe's policy.

"Instead of 100 percent, they're giving back 90 percent and charging that 10 percent, and it's actually and then a five percent restock and that was their original policy. But they actually added in a five percent restock. So really, you're getting back 85," Goldfarb explained.

After waiting six weeks and growing concerned about how much money she'll get back, Goldfarb knew she needed help. So, she called the NBC 5 Responds team.

LuLaRoe said Goldfarb submitted her cancellation in late July and they received her inventory in late August. In her case: problem solved!

LuLaRoe explained that after they verify Goldfarb's product returns she will be issued a 100 percent refund.

Here is what LuLaRoe is now saying online about their policy change:

"This waiver, in place from April to September…was never intended to be permanent...We decided to end the waiver when it became evident that a good number of retailers were abusing the program by returning product in extremely poor condition and providing inaccurate claims, as well as retailers using it as temporary solution to struggles in their business."

Other LuLaRoe sellers have told NBC 5 Responds they felt angry that LuLaRoe switched their refund policy without warning. Many we spoke to were hoping to finally be relieved of their leftover inventory and receive 100 percent of their money back, per the special offer.

But the sudden switch has left many sellers confused and motivated to protest.

Saturday's protest is scheduled for 5 p.m. at the AT&T Center in Arlington.

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