SEATTLE – Utah-based jewelry company Paparazzi has agreed to pay $1.9 million and alter its business practices in Washington following an investigation by the state Attorney General’s Office. The settlement follows allegations that the company operated as a pyramid scheme, violating Washington’s Consumer Protection Act and Antipyramid Promotional Scheme Act.
Attorney General Nick Brown announced that the resolution will provide compensation to approximately 7,100 Washington residents who sold Paparazzi jewelry, with each set to receive an average of $180. As part of the agreement, sellers who purchased unsold inventory after January 2017 will be eligible for a full refund upon return of the merchandise.
The resolution also requires Paparazzi to change how it advertises its sales program by providing clearer disclosures about the earnings potential of its consultants. Additionally, the company must implement a nationwide refund process for customers who purchased jewelry containing lead and nickel. Despite previously marketing its products as free from these metals, internal testing revealed that some items, including those intended for children, contained them.
Funding for Washington’s Consumer Protection Division, which pursued the case, comes in part from legal recoveries secured through enforcement actions. Past cases have resulted in significant consumer relief, including efforts to combat the opioid epidemic, challenge anticompetitive grocery store mergers, and secure refunds for overcharges on chicken and tuna products.
Consumers seeking more information or refunds related to Paparazzi’s settlement can contact the Attorney General’s Office.
