Tori Belle Cosmetics Charges Affiliates Endless Monthly Fees Class Action

Tori Belle Cosmetics, LLC conducts its business as a multi-level marketing company by recruiting independent salespeople to sell its product. The salespeople, called Affiliates, must sign an agreement which, among other things, specifies that they pay an “access fee” each month. This access fee is supposed to be discontinued under certain conditions, but the complaint for this class action alleges that Tori Belle continues to charge salespeople even after they have terminated their connection with the company.

The class for this action is all current and former independent contractors of Tori Belle Cosmetics, LLC living in the US who, between August 16, 2016 and final judgement in this case, were charged monthly fees in violation of their Affiliate Agreements.

Tori Belle hires independent contractors to sell its cosmetics. However, the company works through a pyramid-shaped sales structure where Affiliates are supposed to recruit other salespeople as a “downline” and receive a portion of their earnings as well.

The complaint alleges that “an Affiliate’s largest earnings are made from the sales of their recruits.” The remainder of the proceeds of sales are then passed up the pyramid, with each person above taking a portion of the proceeds, and with another portion reserved for the company. But this portion isn’t the only amount made by the company; the complaint alleges that it also charges its Affiliates fees and costs.

Affiliates of Tori Belle sign identical contracts with the company when they are hired. The contract specifies that the Affiliate will pay a $9 fee for access to the Tori Belle website, which the company deducts from the Affiliate’s credit card. The complaint alleges, “Tori Belle requires each Affiliate to maintain an active credit card on file, and prevents Affiliates from deleting the credit card information without inputting a new, active card.”

The monthly charge is not announced to the Affiliate in any way, the complaint alleges. There is no email notice, SMS, or activity required from the Affiliate. The only way Affiliates are even aware of the charge is if they check the individual entries on their credit card statement.

The charges are supposed to stop under two conditions, according to the complaint: (1) if the Affiliate fails to pay the $9 fee for three consecutive months, or (2) if the Affiliate has less than $300 in retail sales over a period of six months.

However, the complaint alleges that Tori Belle does not adhere to these conditions and continues to charge Affiliates the access fee month after month, sometimes for years after the person has ceased all activities with the company.

The complaint claims, “Tori Belle was so aggressive in its overcharging[] that some Affiliates had to cancel their credit cards to avoid being charged because their complaints to Tori Belle were ignored.” The complaint also claims that the company will not reverse any of the fees even after former Affiliates complain.

Article Type: Lawsuit
Topic: Contract
Tags: Breach of Contract, Fees After Termination