MLM Jeweler Settles With Washington State Over “Pyramid” Allegations

By Rob Bates | March 06, 2025

Paparazzi Accessories, a multilevel marketing (MLM) company specializing in jewelry, has agreed to pay $1.9 million and change its business practices in Washington state, according to a statement from the office of Washington attorney general Nick Brown (pictured).

By signing the consent decree, Paparazzi heads off an action from the AG’s office, which alleged the company was in violation of the state’s Consumer Protection Act and Anti–Pyramid Promotional Scheme Act.

Under terms of the settlement, Washington residents who were Paparazzi sales consultants can return any unsold merchandise they purchased from the company after January 2017 for a full refund.

The agreement also creates a claims process for refunds for anyone who bought Paparazzi jewelry that contains lead and nickel, as Paparazzi advertised certain items as free of those metals. According to the AG’s office, Paparazzi’s own testing revealed that some of its products contained lead and nickel. (In the consent decree, Paparazzi did not admit to any of the allegations in the attorney general’s complaint.)

Following the settlement, the attorney general’s office will send 7,100 state residents who sold jewelry for the company checks for an average of $180.

“Our investigation showed Washingtonians were clearly harmed by Paparazzi,” Brown said in a statement. “Advertising too-good-to-be-true returns on investments is one of the ways companies and individuals try to deceive Washingtonians.”

The resolution also requires Paparazzi to be more transparent if it wishes to keep operating in the state and puts restrictions on how Paparazzi can advertise its sales program—going forward, it must fully disclose the income that consultants would likely receive, the statement said.

Paparazzi, which is based in St. George, Utah, could not be reached for comment, but said in a statement to The Seattle Times that it stands “behind our business” and “will always fight back against misleading and false narratives about our company.”

(Photo courtesy of the Washington State Attorney General’s office)