LuLaRoe Refunding Customers Who Bought Poor-Quality Leggings but Refuses to Apologize
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LuLaRoe Refunding Customers Who Bought Poor-Quality Leggings but Refuses to Apologize

Customers complained that the material was so thin it developed holes after only a few hours of wear

April 26, 2017

The popular multi-level marketing business LuLaRoe is giving refunds to customers in response to complaints about the poor quality of its leggings, but it refuses to apologize for the problem.

Customers complained that the material of the leggings was so thin that it developed holes after being worn for only a few hours. One customer said that they "rip like wet toilet paper."

The company said that it will issue full refunds for any defective merchandise that customers bought between January 1, 2016 and April 24, 2017. Affected customers can get their refunds either through one of the 80,000 people who sell the clothes—so-called "independent retailers" or "consultants"—or online from LuLaRoe directly.

LuLaRoe is also putting into place what it calls a "happiness policy" meant to make it easier for customers for obtain refunds, credits, or exchanges in the future.

"We listened and we heard the feedback from social media and our consumers and even from our retailers," LuLaRoe CEO Mark Stidham stated. "If someone has spent money on one of our products, we want them to feel that they got value for that money they spent."

At one point, a Facebook group was started for customers to exchange stories about the damaged clothing. The group now includes more than 26,000 members.

Two customers have also filed a class-action lawsuit accusing LuLaRoe of ignoring the complaints of its customers and of selling clothing that it knew was defective in order to make money for its top executives.

Stidham believes that the majority of LuLaRoe customers are satisfied with their purchase.

"[The number affected by the problem] is statistically insignificant," he said, comparing the hundreds of complaints lodged against the company with the Better Business Bureau with the 17.5 million items sold by LuLaRoe in March alone. "It doesn't exist. At the same time, I don't want to be flippant about that."

According to Stidham, the company is not apologizing or changing course as a result of its legging issues.

"I don't feel we have much to apologize for," he said. "I'm empathetic, and I'm sorry that [the affected customers] had a bad experience. But I don't feel that the company is in a place where a blanket apology is necessary."

He did comment, however, that LuLaRoe is making changes to its quality-assurance tests going forward.

"We've added different stretch tests and visual inspections to find small holes," he said. "We also invented a light-tower system where leggings can be stretched over it" to help identify problems.