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The co-founders of Paparazzi have launched a countersuit against three defendants in the “employee leaks” case.

Among other things, the defendants and current counterclaim plaintiffs Geraldine Souza, Jennifer Carrol, and Jaime Robinson claim Paparazzi is a pyramid scheme.

Along with an answer to Paparazzi’s lawsuit, a counterclaim plaintiff’s complaint was filed, mostly refuting claims made against them.

To prevent the Defendants from disclosing “secret and protected information,” Paparazzi sued the Defendants back in April.

The co-founders of the paparazzi, Misty Kirby, Trent Kirby, Chantel Reeve, and Ryan Reeve, are included as defendants in the counterclaim that was filed on August 15.

according to the Counterclaim;

The recruitment and retention of people to work as Consultants for Paparazzi is a key component of, if not the whole business strategy of, Paparazzi.

Due to this, Paparazzi pays and rewards its consultants for bringing on new consultants, who then bring on new consultants.

The majority of incentives, commissions, and other forms of remuneration are only available to Consultants once they have successfully recruited new employees into Paparazzi.

Paparazzi Accessories was reviewed by BehindMLM in October 2021. Encouragement of Consultants to purchase “huge volumes of stock,” inventory loading, and obligatory purchases—all signs of an MLM pyramid scheme—were cause for worry.

The Counterclaim keeps on;

According to Paparazzi’s 2021 income statement, a Consultant’s claim to pay is mostly derived from that Consultant’s recruitment of new members into the pyramid rather than from that Consultant’s sale of Paparazzi’s jewelry.

Level-1 and level-2 consultants only receive an average “monthly bonus” of $12.49 and $23.67, respectively. For these levels, the “bonus” may only be $0.10.

However, the potential pay skyrockets after bringing on at least three more Consultants.

The monthly bonus at level 3 is greater than eight times the bonus at level 2 and greater than fifteen times the bonus at level 1.

At level 14, the average monthly bonus exceeds the level-2 bonus by more than 6,536 times and the level-1 bonus by 12,402 times.

As a result, consultants cannot progress unless they are bringing new members up the pyramid. Additionally, selling Paparazzi jewelry and accessories is not necessary for a Consultant to grow in their position.

Also mentioned is the “lead and nickel free” issue involving the paparazzi.

The Counterclaim makes eleven claims for redress to hold Paparazzi responsible for claimed

infringements of the Utah Pyramid Scheme Act;

offenses against the Lanham Act;

breaches of the Consumer Legal Remedies Act in California;

Texas’ Deceptive Trade Practices Act infractions;

infringements of the Consumer Protection Act of Idaho;

infringements of the Consumer Sales Practices Act in Utah;

violation of an explicit guarantee;

violation of an implied guarantee

breaches of the False Advertising Law of California;

the false representation made in deception; and

irresponsible misrepresentation

The co-founders of Paparazzi have not yet responded to the Counterclaim.

Looking ahead, the 27th of September has been set aside for a case management conference.

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