LuLaRoe is facing a class-action lawsuit over claims that its popular leggings tear and develop holes after as little as a few hours of wear.
The lawsuit, brought by two LuLaRoe customers, accuses the women's clothing brand of ignoring thousands of customer complaints about the quality of its leggings and knowingly selling defective merchandise that rips like "wet toilet paper" to enrich the company's top executives.
The suit also claims that LuLaRoe refuses to issue refunds directly to customers for defective leggings, and instead instructs them to address the problems with its sellers, or "fashion consultants."
But when sellers turn to the company for refunds of defective merchandise, they also face a roadblock, according to the suit.
"Thousands of customers across the United States are now stuck with defective products because Defendants will neither issue refunds or make exchanges for customers and instead steer customers to the fashion consultants to deal with defective or damaged products," the lawsuit states. "Unfortunately for customers, Defendants will not make refunds to fashion consultants for defective products, and impose various barriers for exchanges. As a result, most fashion consultants will not take back defective products from customers."
LuLaRoe did not immediately respond to a request for comment.
Facebook/LuLaRoeThe clothing company has grown rapidly over the last two years, with sales soaring an estimated 600% to $1 billion last year, according to another recent lawsuit that accuses the company of charging customers the wrong sales tax.
LuLaRoe doesn't sell any products in stores. The company relies on "consultants" to sell the clothing it makes at parties held in their homes. The number of consultants selling LuLaRoe products grown from 38,277 in September to nearly 80,000 today, according to data obtained by Business Insider.
Plaintiffs Julie Dean and Suzanne Jones are seeking compensation for themselves and all customers who purchased foreign-manufactured LuLaRoe leggings after March 31, 2016. They are seeking an award for damages, plus reimbursement of court costs and attorneys’ fees.
Dean, of Boston, Massachusetts, says she wore a pair of LuLaRoe leggings for only a couple hours before they developed tiny holes throughout.
"Another patterned pair developed a hole so big she could put her finger through them," the lawsuit states.
Jones, of Lafayette, California, said she received a pair of leggings that were incorrectly sized.
"One pair of the leggings she could not even get past her knees because they were so small as if they were manufactured for a child," the lawsuit states. "Two other pairs of leggings developed holes when she pulled the leggings on with her fingers."
The lawsuit accuses LuLaRoe of eight counts related to unfair, illegal, and fraudulent business practices, as well as violating laws meant to protect customers and vendors from such practices.