SEATTLE — The Paparazzi Jewelry company has agreed to pay $1.9 million and change the way they do business after the Washington State Attorney General’s office alleged the company operated as a pyramid scheme.
The Utah-based company signed a resolution that in part will send the 7,100 Washingtonians who worked for the company an average of $180 checks, according to the Washington State Attorney General’s office.
Additionally, the AG’s office added that any Washingtonian who sold for Paparazzi can return any merchandise that they purchased after January 2017 for a full refund.
“Our investigation showed Washingtonians were clearly harmed by Paparazzi,” affirmed Washington State Attorney General Nick Brown. “Advertising too-good-to-be-true returns on investments is one of the ways companies and individuals try to deceive Washingtonians.”
Paparazzi has been ordered to reform its business practices so that it can continue operating in Washington state. This comes after the company reportedly signed a resolution to avoid a lawsuit over violations of the state Consumer Protection Act and Antipyramid Promotional Scheme Act.
According to the AG’s office, the company must also be more transparent about the expected sales its consultants will likely receive and disclose the materials its products are made of.
Attorney General Nick Brown’s release revealed Paparazzi advertised its products as free from lead and nickel, but the company’s own testing revealed that they contained both heavy metals.
The AG’s office also included a recent list of what they call key consumer protection victories:
- $1.3 billion in recoveries dedicated to combating the opioid epidemic at the state and local level.
- Blocking the Kroger and Albertson’s anticompetitive grocery store merger.
- Up to $40.6 million will be distributed to Washingtonians who overpaid for chicken and tuna products that were part of a price-fixing conspiracy.
- A nationwide agreement requiring Dollar Tree to monitor its testing labs to ensure they follow appropriate testing methods for lead and cadmium that are audited and verified through independent experts.
- Over $43 million in direct refunds and debt forgiveness to student loan borrowers.
- More than $158 million in debt relief to patients who Washington hospitals failed to screen for charity care.
- Our Consumer Protection Division has successfully challenged consumer “non-disclosure” agreements to make sure online reviews are honest and returned funds to consumers who signed illegal contracts.
- The Manufactured Housing Unit recoups millions of dollars for tenants subjected to illegal rent hikes and other misconduct under the Manufactured Housing Landlord Tenant Act.
- The Wing Luke Civil Rights Division addresses discrimination in housing, employment, insurance, credit, and government services and businesses open to the public. Recent wins illustrating the breadth of that work include wins against Allianz ($1.5 million, insurance discrimination), Greenridge Farming ($470,000, farmworker sexual harassment and retaliation), and Operation Veterans Assistance & Humanitarian Aid (more than $2.15 million, sexual harassment and retaliation at a chain of thrift stores).
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