Along with the controversy over legging quality, LuLaRoe is also in a bit of hot water for allegedly overcharging for sales tax.
According to the lawsuit, which is seeking class-action status, LuLaRoe charged many customers sales tax when their state does not have clothing tax, or they charged a higher sales tax than permissible in their state. Customers may be owed refunds from LuLaRoe as a result of the lawsuit.
LuLaRoe issued a statement saying the incorrect sales tax charges were triggered by a “technology system failure” from a former vendor, according to CBS News.
“We are fully aware of this issue and have invested significant resources to address it,” the company said in the statement. “When affected customers have contacted us to identify their proper location, we have immediately issued them a refund for sales tax overcharges. In addition to contracting a new payments vendor, we are proactively working to ensure that all affected customers are refunded for sales tax overcharges.”