Three defendants in the “employee leaks” case have launched a countersuit against the co-founders of Paparazzi.
Defendants Geraldine Souza, Jennifer Carrol, and Jaime Robinson contend, among other things, that Paparazzi is a pyramid scheme.
A counterclaim plaintiff’s complaint was filed with an answer to the Paparazzi’s case, mostly rejecting the claims leveled against them.
The Defendants were sued by the paparazzi in April in an attempt to prohibit them from releasing “confidential and protected information.”
Misty Kirby, Trent Kirby, Chantel Reeve, and Ryan Reeve are named as defendants in the August 15th Counterclaim.
According to the Counterclaim;
The economic strategy of the Paparazzi is significant, if not totally, based on hiring and maintaining individuals to work as Consultants for Paparazzi.
As a result, Paparazzi rewards and incentivizes its Consultants to recruit more Consultants, who in turn recruit other Consultants.
Consultants must recruit other persons into Paparazzi before they are eligible to collect the vast majority of bonuses, commissions, or other payments under Paparazzi’s incentive system.
In October 2021, BehindMLM reviewed Paparazzi Accessories. Concerns were raised about Consultants being encouraged to buy “huge volumes of product,” inventory loading, and obligatory purchases, all of which are hallmarks of an MLM pyramid scam.
The counterclaim is still ongoing;
According to Paparazzi’s 2021 revenue statement, a Consultant’s entitlement to receive payment is based mostly on that Consultant recruiting other persons into the pyramid rather than selling Paparazzi’s jewelry.
A level-1 Consultant’s and level-2 Consultant’s average “monthly bonus” is only $12.49 and $23.67, respectively. These tiers’ “bonus” might be as low as $0.10.
However, after hiring at least three more Consultants, the potential income skyrockets.
The monthly bonus at level 3 is more than eight times the bonus at level 2 and more than fifteen times the bonus at level 1.
The average monthly bonus at level 14 is more than 6,536 times the level-2 bonus and 12,402 times the level-1 bonus.
As a result, Consultants cannot advance unless they bring others into the pyramid. And the growth of a Consultant does not necessitate the sale of Paparazzi jewelry and accessories.
The “lead and nickel-free” issue involving the paparazzi is also mentioned.
The Counterclaim attempts to hold Paparazzi accountable for alleged misconduct across eleven grounds of remedy.
Violations of Utah’s Pyramid Scheme Act; Violations of the Lanham Act; Violations of California’s Consumer Legal Remedies Act; Violations of Texas’ Deceptive Trade Practices Act; Violations of Idaho’s Consumer Protection Act; Violations of Utah’s Consumer Sales Practices Act; Breach of express warranty; Breach of implied warranty; Violations of California’s False Advertising Law; Fraudulent Misrepresentation; and
Shortly, a Case Management Conference has been planned for September 27th.