SEATTLE (AP) 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 in a prepared statement released Friday, saying thousands of Washington residents have lost money selling clothes for LuLaRoe.
LuLaRoe company officials did not immediately respond Saturday to an email from The Associated Press requesting comment.
Ferguson says the company tricked consumers into signing up to sell the LuLaRoe products with deceptive claims of high profits and refunds for unsold merchandise. Ferguson says the company misrepresented and failed to honor its refund policies in violation of the state Consumer Protection Act.
He says more than 3,500 Washington residents have become "Independent Fashion Consultants" for LuLaRoe since the start of 2014, and fewer than 2,000 are still active with the company.