1 00:00:00,000 --> 00:00:04,953 Glamour Dolls failed to comply with those obligations when it engaged in a 2 00:00:04,953 --> 00:00:12,523 failed online advertising campaign on Kickstarter, using LFI, Lisa Frank's brand 3 00:00:12,523 --> 00:00:19,633 without LFI's approval and then refused to pay royalties due when LFI properly 4 00:00:19,633 --> 00:00:25,249 terminated the party's contracts as a result of Glamour Dolls' misconduct. 5 00:00:25,249 --> 00:00:29,648 Wait a minute. She didn't know about the Kickstarter? Hello my friend, I will 6 00:00:29,648 --> 00:00:35,334 honestly tell you that until late last night, I did not think that I was filming 7 00:00:35,334 --> 00:00:39,453 a video about Lisa Frank and Glamour Dolls today. I actually had a full video 8 00:00:39,453 --> 00:00:45,318 planned about preservative-free cosmetics and how freaking ridiculous and dangerous 9 00:00:45,318 --> 00:00:50,193 preservative-free cosmetics are. But then I got a very interesting comment from a 10 00:00:50,193 --> 00:00:55,306 person named "Fake Goth Girl." Okay. I get a link. The link is to a court document 11 00:00:55,306 --> 00:01:02,664 that I had not previously had access to. This document is Lisa Frank's point of 12 00:01:02,664 --> 00:01:07,464 view. It is her counter suit. This is Lisa Frank saying "Glamour Dolls is the bad 13 00:01:07,464 --> 00:01:12,309 guy, not me. I didn't do anything wrong - they're the ones that did something 14 00:01:12,309 --> 00:01:17,763 wrong." So in today's video, I want to go over Lisa's side of things - what she says 15 00:01:17,763 --> 00:01:22,622 in the court documents is the reason why she pulled out of her contract with 16 00:01:22,622 --> 00:01:28,807 Glamour Dolls that left backers of the Kickstarter out all of their money - over 17 00:01:28,807 --> 00:01:36,793 $400,000 of their money, including my money. My $75? Gone. If you have no idea 18 00:01:36,793 --> 00:01:41,555 what I'm talking about, that's because this is Part 2. I strongly strongly 19 00:01:41,555 --> 00:01:46,848 suggest you please watch Part 1 of this. It will be linked below. It will be up in 20 00:01:46,848 --> 00:01:50,468 a card. It is the background for this video - this video might not make sense 21 00:01:50,468 --> 00:01:54,388 if you don't watch that one first. If you don't feel like you have time for an hour 22 00:01:54,388 --> 00:01:58,338 and a half long video, what you can do is you can scrub through the timestamps, kind 23 00:01:58,338 --> 00:02:04,589 of get the idea of what it is. You can also play it on 1.5 speed if you want to. 24 00:02:04,589 --> 00:02:08,470 And I will tell you that the average amount of watch time on that video for a 25 00:02:08,470 --> 00:02:13,520 single view is about 40 minutes. That has literally never happened on my channel. 26 00:02:13,520 --> 00:02:17,887 This is a story that I think you want to hear and and that I think that you are 27 00:02:17,887 --> 00:02:23,898 going to be engaged in if you choose to. That being said, we are starting at Part 28 00:02:23,898 --> 00:02:27,898 2. I'm assuming at this point that you have seen that video and that you have 29 00:02:27,898 --> 00:02:32,378 that background knowledge. And also side note, I mentioned this at the end of, 30 00:02:32,378 --> 00:02:38,022 the video, but there's probably about 40 comments mentioning Bailey Sarian's video 31 00:02:38,022 --> 00:02:43,651 on Lisa Frank, based on the Jezebel article that we talked about in the first 32 00:02:43,651 --> 00:02:48,140 part of this. Yes, I am fully aware of Bailey's video. I have met Bailey. I have 33 00:02:48,140 --> 00:02:53,735 collaborated with Bailey. Bailey did a fantastic job on that video. That video is 34 00:02:53,735 --> 00:02:59,370 more about Lisa Frank as a person, so if you want even more context for the story, 35 00:02:59,370 --> 00:03:03,588 I highly recommend you go watch Bailey's video as well. What we're gonna do with 36 00:03:03,588 --> 00:03:09,165 this part is I'm actually gonna put Lisa Frank's lawsuit on the side of me so if 37 00:03:09,165 --> 00:03:14,990 you are fluent in Legalese, you can follow along and see the match up of what I'm 38 00:03:14,990 --> 00:03:19,745 saying. Surprisingly, a lot of is is pretty clear cut and there isn't a ton of 39 00:03:19,745 --> 00:03:23,794 lawyer language in this that was difficult to understand. So if you would like to 40 00:03:23,794 --> 00:03:28,283 read along, it is going to be next to me over here. Here we go. So this is what 41 00:03:28,283 --> 00:03:33,852 Lisa says. This is her side of things. This is all about the deal in 2016, the 42 00:03:33,852 --> 00:03:38,677 original deal that she had. Lisa says they struck the deal in June of 2016 that would 43 00:03:38,677 --> 00:03:43,982 end on December 31st of 2017 - that matches up with Glamour Dolls' side, so 44 00:03:43,982 --> 00:03:48,780 I'm assuming there's legal contracts, so there's evidence of this. So Glamour Dolls 45 00:03:48,780 --> 00:03:54,669 in that original contract, agreed to pay Lisa Frank 15% royalty on the net sales 46 00:03:54,669 --> 00:03:59,877 of the products made under the deal, with a minimum payment of $100,000 for the 47 00:03:59,877 --> 00:04:06,083 duration of the agreement, including a $25,000 advance. Glamour Dolls promised to 48 00:04:06,083 --> 00:04:10,593 do their best, to make, sell, promote, and market the products to get as many sales 49 00:04:10,593 --> 00:04:15,450 as possible, always focusing on high quality. Now this part is very very 50 00:04:15,450 --> 00:04:20,843 important because this is really the root of why everything went wrong. They had to 51 00:04:20,843 --> 00:04:26,337 get Lisa Frank's approval on literally everything, from the design concepts to 52 00:04:26,337 --> 00:04:31,522 the artwork, to the molds for production, to the final product samples before going 53 00:04:31,522 --> 00:04:37,272 into production. Lisa Frank had the right to approve or reject the elements and 54 00:04:37,272 --> 00:04:43,121 Glamour Dolls had to follow Lisa Frank's directions on quality standards. Now 55 00:04:43,121 --> 00:04:48,001 listen to this because this is part of the reason why things were taking so long. So, 56 00:04:48,002 --> 00:04:53,022 for designs, Glamour Dolls had to wait up to 10 business days - that's about two 57 00:04:53,022 --> 00:04:58,255 weeks or so - for Lisa Frank to approve or reject anything that they submitted to 58 00:04:58,255 --> 00:05:02,861 her. If Lisa didn't respond in time, Glamour Dolls was allowed to ask after 59 00:05:02,861 --> 00:05:08,139 those 10 business days, "Hey, what's going on? I need a full description of why you 60 00:05:08,139 --> 00:05:12,324 reject this or I need an approval." But this is the kicker! Because even after 61 00:05:12,324 --> 00:05:16,731 approval, and remember, this is according to Lisa herself, Lisa could stop the 62 00:05:16,731 --> 00:05:20,672 production and distribution of the products if they didn't meet her quality 63 00:05:20,672 --> 00:05:24,092 standards. That's a subjective thing - that is not something that can be 64 00:05:24,092 --> 00:05:27,800 measured. Lisa can just for any reason, just say "This doesn't meet my quality 65 00:05:27,800 --> 00:05:31,911 standards" and stop production at any point. And it wasn't just for production 66 00:05:31,911 --> 00:05:36,937 of product. It also had to do with advertising, packaging, display methods, 67 00:05:36,937 --> 00:05:43,219 press releases - anything using Lisa Frank artwork - Glamour Dolls had to run this by 68 00:05:43,219 --> 00:05:47,984 Lisa. They had to wait for those 10 business days and then if she didn't 69 00:05:47,984 --> 00:05:52,712 respond in 10 business days, then they had to poke her about it and be like "Dude, 70 00:05:52,712 --> 00:05:56,672 what's going on?" They had to keep poking her if she didn't respond after those 10 71 00:05:56,672 --> 00:06:01,660 business days. So remember this original contract that I personally believe was to 72 00:06:01,660 --> 00:06:07,685 create the blush, the highlighter, and the two brushes - that contract was ending 73 00:06:07,685 --> 00:06:12,313 in December. But remember the Kickstarter had started in February. We're now in 74 00:06:12,313 --> 00:06:18,297 December. February - they promised backers 10 additional products beyond these four 75 00:06:18,297 --> 00:06:22,615 that had already been funded. Lisa's contract is about to end, so they need to 76 00:06:22,615 --> 00:06:28,366 start a new contract. This is what Lisa says was in the new contract: same 15% 77 00:06:28,366 --> 00:06:35,043 royalty on the net sales of the products plus 20% royalty on sales made directly to 78 00:06:35,043 --> 00:06:39,995 retail customers. So this would be if people bought it off of Ipsy's marketplace 79 00:06:39,995 --> 00:06:43,995 or if people bought it from Hot Topic, or at one point they were talking to 80 00:06:43,995 --> 00:06:49,224 Walmart - any of those, Lisa would get a 20% royalty off of. Beyond that, in the 81 00:06:49,224 --> 00:06:55,889 first contract, Lisa asked for at least $100,000 for her fees. In the new 82 00:06:55,889 --> 00:07:02,015 contract, Lisa upped that to $500,000. That included an up front payment of 83 00:07:02,015 --> 00:07:08,100 $125,000 that needed to be paid when the contract was signed. Three more payments 84 00:07:08,100 --> 00:07:13,909 would be paid throughout the year to total that $500,000. The rules for making the 85 00:07:13,909 --> 00:07:18,080 products were pretty much the same as the first contract. All of the levels of "you 86 00:07:18,080 --> 00:07:21,990 need to send it to Lisa and she needs to approve it" and then the 10 business days 87 00:07:21,990 --> 00:07:25,750 - all of that was pretty much the same. The only thing that changed, which we'll 88 00:07:25,750 --> 00:07:31,088 find out more about in just a minute, is that they did not have to get pre-shipment 89 00:07:31,088 --> 00:07:34,917 approval. So Lisa has already approved the final draft of the product, they have 90 00:07:34,917 --> 00:07:38,917 put that into production, they now have the products - they've got thousands and 91 00:07:38,917 --> 00:07:42,962 thousands and thousands of these products - they don't have to send those products 92 00:07:42,962 --> 00:07:47,372 to Lisa for approval anymore. But there is a clause - because of course there is - 93 00:07:47,372 --> 00:07:51,773 if there were any production problems, if after all of these things were sent out 94 00:07:51,773 --> 00:07:55,583 Lisa decided that there was a production problem, there was something 95 00:07:55,583 --> 00:08:00,882 she didn't like, Glamour Dolls would have to pay damages for that. What would those 96 00:08:00,882 --> 00:08:05,640 damages be? I have no idea, it's not in here. Another thing that's very important 97 00:08:05,640 --> 00:08:10,588 in Lisa's side of the story is that they said that Lisa could end the deal 98 00:08:10,588 --> 00:08:14,739 immediately if Glamour Dolls broke certain rules, like not following the approval 99 00:08:14,739 --> 00:08:19,771 process or having production issues 3 times. If Lisa decided that she was 100 00:08:19,771 --> 00:08:24,425 going to terminate the agreement, Glamour Dolls had to not only stop making 101 00:08:24,425 --> 00:08:28,325 products, they also they had to stop selling their existing products. Then they 102 00:08:28,325 --> 00:08:32,968 had to turn over the rights to the artwork. Anything that Lisa had created 103 00:08:32,968 --> 00:08:38,276 for Glamour Dolls would now be owned by Lisa. And you might be seeing where this 104 00:08:38,276 --> 00:08:44,093 might be going - maybe if you watched Part 1. Because she did that. That happened. 105 00:08:44,093 --> 00:08:49,826 In context, you have to remember that this is 3 months past the date that Glamour 106 00:08:49,826 --> 00:08:55,280 Dolls had promised products would be done and shipped to backers. So they are deep 107 00:08:55,280 --> 00:09:00,691 deep in it now. They are sending out that digital Christmas card, where people can 108 00:09:00,691 --> 00:09:04,691 send it to their families, saying "Hey, you know, you might be getting some Lisa 109 00:09:04,691 --> 00:09:09,522 Frank products that I bought for you at some point. This is what's coming." That's 110 00:09:09,522 --> 00:09:13,954 where we're at. A lot of the backers are already irritated by this point. From 111 00:09:13,954 --> 00:09:17,954 Lisa's side, she says in her court documents that LFI, or Lisa Frank 112 00:09:17,954 --> 00:09:22,328 Incorporated, fully performed its obligations under the license agreements - 113 00:09:22,328 --> 00:09:26,707 I do believe Glamour Dolls would argue against that. They say specifically 114 00:09:26,707 --> 00:09:30,977 Glamour Dolls repeatedly failed to meet their responsibilities under the 115 00:09:30,977 --> 00:09:36,270 agreements they had with Lisa Frank. This is how Lisa says Glamour Dolls messed up. 116 00:09:36,270 --> 00:09:40,636 And remember, she's going to have to prove this for her counter suit. This is what 117 00:09:40,636 --> 00:09:45,067 she says - she says they didn't put in enough effort to produce, distribute, 118 00:09:45,067 --> 00:09:49,242 promote, and sell the products that they were supposed to. She says that they 119 00:09:49,242 --> 00:09:53,242 didn't aim to sell as many high quality products as they could, that they had 120 00:09:53,242 --> 00:09:57,763 signed off in their contract. She says that they use Lisa Frank artwork in ads 121 00:09:57,763 --> 00:10:02,113 and packaging without getting approval first, which was against their rules of 122 00:10:02,113 --> 00:10:06,123 the contract. She says Glamour Dolls was late in making and delivering the 123 00:10:06,123 --> 00:10:10,956 products, which they were. She says that Glamour Dolls didn't follow the agreed 124 00:10:10,956 --> 00:10:15,058 upon process for getting products inspected and approved, that they didn't 125 00:10:15,058 --> 00:10:19,058 pay the royalties and the minimum amounts that they were supposed to, and that they 126 00:10:19,058 --> 00:10:23,834 used the Kickstarter to sell products without getting the okay from Lisa Frank 127 00:10:23,834 --> 00:10:29,372 Incorporated, which was of course not allowed. Finally, they say that Glamour 128 00:10:29,372 --> 00:10:33,806 Dolls promised products to backers and then never shipped them out, which is 129 00:10:33,806 --> 00:10:38,875 true. But the question is: why didn't they ship them out? What was stopping them 130 00:10:38,875 --> 00:10:43,501 from doing it? Was it a fault of Glamour Dolls or was it a fault of Lisa? We're 131 00:10:43,501 --> 00:10:47,261 still in Lisa's perspective, so let's follow that. Lisa says that even through 132 00:10:47,261 --> 00:10:51,121 all of the things that I just listed - the things that are in Lisa's filing - she 133 00:10:51,121 --> 00:10:54,771 continued to try to work with Glamour Dolls to make things work. She says she 134 00:10:54,771 --> 00:11:00,325 did this only because she felt like, if she didn't continue with Glamour Dolls and 135 00:11:00,325 --> 00:11:04,676 see this through and get the backers what they ordered, that it would damage Lisa 136 00:11:04,676 --> 00:11:09,529 Frank. It would damage her and her brand. It wasn't about making sure that people 137 00:11:09,529 --> 00:11:13,319 got what they paid for, it was about the damage it would cause to her reputation 138 00:11:13,319 --> 00:11:17,189 and her brand's reputation. She says in her statement that, you know, that Glamour 139 00:11:17,189 --> 00:11:20,849 Dolls had made all these promises and they failed to go through on them, that 140 00:11:20,849 --> 00:11:24,569 they even said that they were shipping things to people that they never shipped 141 00:11:24,569 --> 00:11:28,199 to them, which I don't know if it's actually true. Because from what I've 142 00:11:28,199 --> 00:11:33,146 seen, anybody that was supposed to get the eyeshadow and the bronzer and the 143 00:11:33,146 --> 00:11:37,865 postcard did get those things. There is some question, at least in the comments 144 00:11:37,865 --> 00:11:42,014 underneath my last video of whether people who ordered the brush separately, whether 145 00:11:42,014 --> 00:11:46,014 they actually got their brush. So maybe that's what Lisa is talking about. Lisa 146 00:11:46,014 --> 00:11:50,675 says that Glamour Dolls ignored rules that they had to follow to get Lisa's 147 00:11:50,675 --> 00:11:56,099 approval before making anything. She says that they attempted to make or change 148 00:11:56,099 --> 00:12:01,372 products without talking to her first. And also that they didn't give her the 149 00:12:01,372 --> 00:12:06,449 samples required that she needed to review. The perspective here is that 150 00:12:06,449 --> 00:12:11,938 because of those failures, people started blaming Lisa Frank and not Glamour Dolls, 151 00:12:11,938 --> 00:12:15,818 where she's saying it wasn't her fault, it was Glamour Dolls' fault. She said that 152 00:12:15,818 --> 00:12:19,748 people began to think that Lisa Frank was scamming them, leaving negative comments 153 00:12:19,748 --> 00:12:25,528 and complaints online that damaged LFI's reputation. It was only because Glamour 154 00:12:25,528 --> 00:12:30,719 Dolls broke their side of the contract so many times that she ended the contract 155 00:12:30,719 --> 00:12:35,972 formally in July of 2018, which is what Glamour Dolls had said, that she abruptly 156 00:12:35,972 --> 00:12:40,459 just ended the contract. What Glamour Dolls had said was before she ended the 157 00:12:40,459 --> 00:12:47,508 contract, she required them to pay that final $125,000 to her and then once she 158 00:12:47,508 --> 00:12:51,670 got the money, she terminated the contract and that they didn't know she was going to 159 00:12:51,670 --> 00:12:56,543 do that when she took the money. Supposedly, LFI reminded Glamour Dolls 160 00:12:56,543 --> 00:13:01,321 that they needed to do the things that were in the contract, that if she ended 161 00:13:01,321 --> 00:13:05,686 it, that they needed to do - things like returning all the artwork and paying any 162 00:13:05,686 --> 00:13:10,721 royalties owed. However, she says Glamour Dolls didn't pay what they owed or follow 163 00:13:10,721 --> 00:13:15,360 through on other responsibilities after the termination, leading to more problems 164 00:13:15,360 --> 00:13:20,203 and losses for LFI. So at the final part of the complaint, Lisa says "This is what 165 00:13:20,203 --> 00:13:24,306 I want the court to give me." She says she wants to be paid damages, which means all 166 00:13:24,306 --> 00:13:27,956 of the money that they should have received under the agreements with Glamour 167 00:13:27,956 --> 00:13:33,637 Dolls - the exact amount of how much she should be paid would be decided at trial. 168 00:13:33,637 --> 00:13:37,547 Then she wants to be paid back for all of the costs and all of the expenses and the 169 00:13:37,547 --> 00:13:43,927 lawyer's fees as allowed by law. She also wants to receive interest on any money 170 00:13:43,927 --> 00:13:50,074 awarded to them, both before and after the court's decision at 18% per year and it 171 00:13:50,074 --> 00:13:55,953 looks like, you know, this happened in 2018, it's now 2024, so that's a lot of 172 00:13:55,953 --> 00:13:59,860 freakin' interest. I'm not going to do the math in my brain right now because it's 173 00:13:59,860 --> 00:14:03,923 physically and mentally impossible for me but that's a lot of money. And finally, 174 00:14:03,923 --> 00:14:07,453 she's like "And if the court wants to give me something else, if you think 175 00:14:07,453 --> 00:14:11,283 there's something else that's fair, feel free. You can give me that too." So that 176 00:14:11,283 --> 00:14:16,001 is Lisa's filing. I have lots of thoughts my friend. Do you have thoughts? Because 177 00:14:16,001 --> 00:14:19,619 if you have thoughts, put 'em in the comment section because I'm wondering if 178 00:14:19,619 --> 00:14:23,501 we have the exact same thoughts. That's what the collective brain is all about, is 179 00:14:23,501 --> 00:14:27,591 us bouncing ideas off of each other and in a recorded video, it's a little harder. So 180 00:14:27,591 --> 00:14:31,371 if you have thoughts, definitely leave them in the comments. I'm gonna tell you 181 00:14:31,371 --> 00:14:36,809 mine. Okay, so I have questions. [laughs] I have 3 major questions. The first one is 182 00:14:36,809 --> 00:14:42,985 "What was the timeline for approving the Kickstarter?" Because eventually, Lisa was 183 00:14:42,985 --> 00:14:46,985 participating in the Kickstarter, at least it looks like she was participating in the 184 00:14:46,985 --> 00:14:52,680 Kickstarter. So I am curious what Glamour Dolls' side of this is, in that do they 185 00:14:52,680 --> 00:14:56,920 say that they did the Kickstarter without talking to Lisa? Because I noticed 186 00:14:56,920 --> 00:15:03,155 something that was in their paperwork that they filed. They label Kickstarter as a 187 00:15:03,155 --> 00:15:08,224 business that they were trying to get to work with, right? So it's listed in with 188 00:15:08,224 --> 00:15:14,247 Ipsy and Hot Topic; they also list Kickstarter. So it was seen by them - it 189 00:15:14,247 --> 00:15:19,931 looks like - as just another way to sell products and I don't know if that was in 190 00:15:19,931 --> 00:15:25,560 the contract, that they had to clear what retailers they were gonna work with with 191 00:15:25,560 --> 00:15:29,608 Lisa. Where I think that Lisa may have them on this is that they had to use Lisa 192 00:15:29,608 --> 00:15:36,921 Frank artwork and they had to promote this using Lisa Frank branded stuff for the 193 00:15:36,921 --> 00:15:41,464 Kickstarter before it even started. Remember Candy's video. I wish I could 194 00:15:41,464 --> 00:15:45,304 show you the video - it is killing me that this video is private and I can't show 195 00:15:45,304 --> 00:15:50,970 you the full video. But Candy clearly uses Lisa Frank artwork in the video to 196 00:15:50,970 --> 00:15:55,317 promote this Kickstarter. If Lisa didn't know about the Kickstarter, then she 197 00:15:55,317 --> 00:15:59,548 didn't approve the artwork to be used in Candy's video or any other promotional 198 00:15:59,548 --> 00:16:04,473 things that they did for the Kickstarter. So then Lisa would have them on that. 199 00:16:04,473 --> 00:16:08,203 That's what I'm thinking most likely happened - I mean of course it's possible 200 00:16:08,203 --> 00:16:12,473 that Glamour Dolls did talk to Lisa and tell her about the Kickstarter beforehand 201 00:16:12,473 --> 00:16:16,333 and did get all of the artwork approved and all of that, but it sounds like Lisa 202 00:16:16,333 --> 00:16:20,253 is saying "No, that didn't happen." So my next question associated with that - 203 00:16:20,253 --> 00:16:25,386 that's kind of a sub question to question number 1 - is "When did Lisa find out 204 00:16:25,386 --> 00:16:30,514 about the 10 products that they promised to the Kickstarter backers? When did she 205 00:16:30,514 --> 00:16:34,691 agree to that?" Because it seems like that first contract from 2016 was really for 206 00:16:34,691 --> 00:16:39,101 those 4 products that they actually did produce and put out there - the blush 207 00:16:39,101 --> 00:16:43,975 brush, the crease brush, the bronzer, and the eyeshadows. Single eyeshadows, not 208 00:16:43,975 --> 00:16:48,123 eyeshadow palettes, the single eyeshadows. The ones that were sold at Hot Topic. It 209 00:16:48,123 --> 00:16:53,612 is very very likely that Lisa was on board with the Kickstarter about a month after 210 00:16:53,612 --> 00:16:59,264 the Kickstarter started because in March, they show posts that are specifically from 211 00:16:59,264 --> 00:17:05,496 Lisa, participating in encouraging people to enter these contests, to perform these 212 00:17:05,496 --> 00:17:10,818 tasks, to show their nail looks and things like that. Lisa is posting there. So if 213 00:17:10,818 --> 00:17:14,857 this is really Lisa posting - which it doesn't really make any sense to me that 214 00:17:14,857 --> 00:17:19,309 it wouldn't be Lisa because Glamour Dolls wouldn't be able to, like, hide that from 215 00:17:19,309 --> 00:17:22,929 Lisa - they would have to explain that so it doesn't really make sense to me 216 00:17:22,929 --> 00:17:27,309 that that wasn't actually Lisa posting. But she was clearly participating and 217 00:17:27,309 --> 00:17:31,938 on board in March. Another clue that Lisa was involved in the Kickstarter from the 218 00:17:31,938 --> 00:17:36,433 launch of the Kickstarter was that just a few days after the launch, Glamour 219 00:17:36,433 --> 00:17:40,770 Dolls posted that Lisa was going to go into her vault and the first 1,000 backers 220 00:17:40,770 --> 00:17:45,988 were going to get a very special gift from Lisa in their box when they got their 221 00:17:45,988 --> 00:17:50,558 stuff. They would get a second - what they called a treat - if they hit 2,000 backers 222 00:17:50,558 --> 00:17:55,539 and that Lisa had something really special planned if they made it to 10,000 backers. 223 00:17:55,539 --> 00:18:01,460 So I'm very curious to see if this piece comes out in court. My second question is 224 00:18:01,460 --> 00:18:08,801 "Why the hell did Glamour Dolls sign this terrible ass contract?" This is the most 225 00:18:08,801 --> 00:18:14,955 bull**** contract I think I have ever read. It is absolutely nuts. The part that 226 00:18:14,955 --> 00:18:19,917 is the most unbelievable for me is that Glamour Dolls signed this is the whole 227 00:18:19,917 --> 00:18:25,418 approval process. It is absolutely ridiculous. Both sides agree that this was 228 00:18:25,418 --> 00:18:29,418 the process. So they have an idea, right? They start with the idea. Let's use the 229 00:18:29,418 --> 00:18:33,418 Trapper Keeper palettes as an example. So they have an idea that they want to 230 00:18:33,418 --> 00:18:37,418 create a palette that looks like a Trapper Keeper. So they get this plain white 231 00:18:37,418 --> 00:18:42,527 Trapper Keeper palette made by the factory. Glamour Dolls then takes this 232 00:18:42,527 --> 00:18:47,145 white packaging, this plain plastic packaging that's the mock-up, send it to 233 00:18:47,145 --> 00:18:51,145 Lisa, wait 10 business days. If she doesn't answer, they have to poke her and 234 00:18:51,145 --> 00:18:55,264 get her to give feedback. If she doesn't approve of it, Glamour Dolls then takes 235 00:18:55,264 --> 00:18:59,320 her ideas, whatever she wants changed, and lets the manufacturing facility know. Then 236 00:18:59,320 --> 00:19:04,332 they get another mock-up. Then they send that to Lisa. They wait 10 days, they wait 237 00:19:04,332 --> 00:19:09,752 for the feedback. All of that happens all over again until Lisa's happy. I didn't 238 00:19:09,752 --> 00:19:14,872 see anything on either said that said Lisa had a limit to how many changes she could 239 00:19:14,872 --> 00:19:21,085 make. So let's assume she's now approved the mold. Now they have to wait for Lisa 240 00:19:21,085 --> 00:19:25,268 to make the artwork. Once the artwork comes in, again, they send it over to the 241 00:19:25,268 --> 00:19:29,723 manufacturer. The manufacturer puts it on the product. Then Glamour Dolls has to 242 00:19:29,723 --> 00:19:34,916 have two samples of it that they then send over to Lisa and wait those 10 business 243 00:19:34,916 --> 00:19:39,093 days again. If she doesn't respond, then they poke her - same process all over 244 00:19:39,093 --> 00:19:44,583 again, where she can either reject it or accept it. Do you see how this is so 245 00:19:44,583 --> 00:19:50,011 freaking ridiculous? Because it's not even over then! Even after Lisa has approved 246 00:19:50,011 --> 00:19:54,754 the final designed product, when they manufacture it - let's say they make 247 00:19:54,754 --> 00:19:59,630 10,000 of them, because this did happen - they make 10,000 of them, they have to 248 00:19:59,630 --> 00:20:04,747 send 2 of the 10,000 to Lisa for final approval before they can ship those out 249 00:20:04,747 --> 00:20:08,747 to customers. And I will tell you my friend, this actually happened - 250 00:20:08,747 --> 00:20:13,719 according to Glamour Dolls - with the vegan leather makeup bag. This is the 251 00:20:13,719 --> 00:20:17,489 draft picture of the vegan leather makeup bag that was not designed, that people 252 00:20:17,489 --> 00:20:22,574 were really excited about. This is the final design that was supposedly "The 253 00:20:22,574 --> 00:20:27,198 One," the makeup bag. Well it turns out, according to Glamour Dolls, Lisa didn't 254 00:20:27,198 --> 00:20:31,297 like this and after they had printed 10,000 of these, Lisa said she didn't 255 00:20:31,297 --> 00:20:35,451 want it to be vegan leather anymore; she wanted it to be glitter plastic. And 256 00:20:35,451 --> 00:20:40,669 because of the sh**** ass contract that they signed, they couldn't sell those 257 00:20:40,669 --> 00:20:46,308 10,000 bags that they had already made because she had approved the sample. They 258 00:20:46,308 --> 00:20:52,344 had to start all over again with a glitter bag design. I mean how f***ing ridiculous 259 00:20:52,344 --> 00:20:56,388 is this? The fact that Glamour Dolls signed this contract, did they not have 260 00:20:56,388 --> 00:21:03,058 a lawyer read it? Like what happened? How did this get through? From the very jump, 261 00:21:03,058 --> 00:21:06,838 this should have just never happened and I'm sure Glamour Dolls in hindsight is 262 00:21:06,838 --> 00:21:13,615 thinking the exact same thing. And my third question is "Why would they start a 263 00:21:13,615 --> 00:21:20,422 Kickstarter in February, knowing that Lisa's contract was ending in December?" 264 00:21:20,422 --> 00:21:25,036 Because that's where they really got screwed. This is what I'm thinking: I'm 265 00:21:25,036 --> 00:21:30,356 thinking Lisa designed all of the products and got everything going for those first 266 00:21:30,356 --> 00:21:35,952 four products before the Kickstarter even started. And that was why Glamour 267 00:21:35,952 --> 00:21:39,682 Dolls wanted to do more work with her. They were like "Yes, this was so smooth, 268 00:21:39,682 --> 00:21:43,582 this was so easy. Let's keep this going a little longer. We have until December, 269 00:21:43,582 --> 00:21:47,532 it's only February. We have all this time. We pushed out those four products pretty 270 00:21:47,532 --> 00:21:51,312 quickly as far as getting through this process, so let's do 10 more! We've got 271 00:21:51,312 --> 00:21:55,642 this." Glamour Dolls said publicly that they didn't start having problems with 272 00:21:55,642 --> 00:21:59,952 Lisa slowing down the process until June of 2017. So that was after the Kickstarter 273 00:21:59,952 --> 00:22:03,672 had already started, but before the estimated ship date that they told the 274 00:22:03,672 --> 00:22:07,652 backers of September. And it makes sense because if they started signing the 275 00:22:07,652 --> 00:22:12,789 contract in June of 2016, by February, they had made and designed 4 products. 276 00:22:12,789 --> 00:22:16,599 Assuming that Lisa was done with all of the designs and all of the things and all 277 00:22:16,599 --> 00:22:20,119 of the approvals by the time that the Kickstarter started so that's about 8 278 00:22:20,119 --> 00:22:23,789 months. So they're thinking "Well yeah this was so easy, we should be able to 279 00:22:23,789 --> 00:22:27,579 push out more products by December, by the time Lisa's contract ends." So now I 280 00:22:27,579 --> 00:22:32,604 shall present to you the worst case scenario of Lisa's a raging b****. 281 00:22:32,604 --> 00:22:36,314 [laughter] That's where we're gonna go with this. This is worst case scenario 282 00:22:36,314 --> 00:22:40,645 what happened, in that Lisa knew her contract was ending in December, she knew 283 00:22:40,645 --> 00:22:45,510 that she could slow down this process in order to get a new contract in December 284 00:22:45,510 --> 00:22:49,310 and price gauge the hell out of Glamour Dolls. She knew that they had already 285 00:22:49,310 --> 00:22:54,196 promised all of these products to the backers. She knew that they probably 286 00:22:54,196 --> 00:22:59,320 given her $125,000 of the backers' money. She knew that Glamour Dolls was already 287 00:22:59,320 --> 00:23:03,829 using the backer money in order to get these samples and ship them to her. The 288 00:23:03,829 --> 00:23:07,649 $370,000 that the backers had paid, probably a lot of it was already spent 289 00:23:07,649 --> 00:23:11,829 because that's why they started wanting - needing more money. They started selling 290 00:23:11,829 --> 00:23:16,352 the products on BackerKit, they started selling the crease brush on their website, 291 00:23:16,352 --> 00:23:21,089 they really started courting Hot Topic to try to sell products over there because 292 00:23:21,089 --> 00:23:26,612 Lisa was taking all of the Kickstarter backers' money for herself and they were 293 00:23:26,612 --> 00:23:30,542 using it for the manufacturing of these products and they knew it wasn't enough to 294 00:23:30,542 --> 00:23:34,292 see this whole project through because remember they've got 10 products they're 295 00:23:34,292 --> 00:23:38,798 trying to make by December. So time passes, Lisa drags this out, drags this 296 00:23:38,798 --> 00:23:43,406 out, and then drops the bomb on Glamour Dolls: "If you want this to continue, 297 00:23:43,406 --> 00:23:47,406 after all this money that you spent, you're gonna have to pay me $500,000, not 298 00:23:47,406 --> 00:23:51,406 $100,000 anymore. It's $500,000 and you know when you sell to Hot Topic? You're 299 00:23:51,406 --> 00:23:55,793 not gonna give me 15%, you're gonna give me 20%." But at that point, they were so 300 00:23:55,793 --> 00:23:59,649 far deep in it that they couldn't get out of it. They absolutely couldn't get out 301 00:23:59,649 --> 00:24:03,579 of it. Another place that they probably spent the backers' money was on Wengie 302 00:24:03,579 --> 00:24:08,784 because remember the call that Peter did with the backers? He mentions very 303 00:24:08,784 --> 00:24:11,244 briefly paying for a video. I'll play that for you. 304 00:24:11,244 --> 00:24:15,244 (Peter): We actually didn't make a profit off of this Kickstarter campaign. I know 305 00:24:15,244 --> 00:24:19,524 that's, um, it's a hard thing for people to, um, to kind of believe with the size 306 00:24:19,524 --> 00:24:23,774 of it. But, um, we have to manufacture all those goods, uh, we have licensing fees 307 00:24:23,774 --> 00:24:29,184 to pay to Lisa, um, we had to pay for, you know, uh, for production of the video and 308 00:24:29,184 --> 00:24:30,710 for all these different things. 309 00:24:30,710 --> 00:24:34,619 (Jen) I don't know this for a fact but I think he took the money from the backers 310 00:24:34,619 --> 00:24:38,235 and paid Wengie to make that video. Who knows how much he paid her because 311 00:24:38,235 --> 00:24:41,855 influencer rates back then, you know, it was brand new, you know, influencers 312 00:24:41,855 --> 00:24:45,635 getting paid for sponsored videos and things like that. I have no idea how much 313 00:24:45,635 --> 00:24:49,535 they paid Wengie but I would imagine that was part of where the money was going and 314 00:24:49,535 --> 00:24:53,105 why they needed to raise more money. Because now in December, they not only 315 00:24:53,105 --> 00:24:56,645 have to get all of these 10 products manufactured but they also have to pay 316 00:24:56,645 --> 00:25:01,725 Lisa this $500,000. Lisa officially had Glamour Dolls by the unicorn balls. I mean 317 00:25:01,725 --> 00:25:07,298 like, she was-she had them. They had no choice, in my opinion, if this is the way 318 00:25:07,298 --> 00:25:12,576 it played out, other than to sign that contract and just hope for the best. If 319 00:25:12,576 --> 00:25:16,697 all of this is true - let's say they say "Screw you Lisa, we're not paying you 320 00:25:16,697 --> 00:25:21,428 $500,000, we're cutting off the contract now." How do they pay back the backers? 321 00:25:21,428 --> 00:25:26,881 They can't. They don't have the money anymore. It's gone. They don't have the 322 00:25:26,881 --> 00:25:30,881 money to pay back the backers so they are absolutely screwed. Some other things 323 00:25:30,881 --> 00:25:35,886 that I found in the Glamour Dolls part of the lawsuit that I didn't see when I made 324 00:25:35,886 --> 00:25:39,886 the last video that I want to let you know because now, I imagine at some point, 325 00:25:39,886 --> 00:25:45,285 there'll be a part 3 [laughter] of this video is that they were saying more 326 00:25:45,285 --> 00:25:50,157 things about how Lisa interfered with the production of the product. So in the court 327 00:25:50,157 --> 00:25:55,429 filing, it says "Lisa Frank frequently and unreasonably rejected already manufactured 328 00:25:55,429 --> 00:26:00,883 samples without being specific as to the reason for disapproval." In their filing, 329 00:26:00,883 --> 00:26:04,543 they said that there was a problem with the Ipsy products. They said "in one 330 00:26:04,543 --> 00:26:10,580 instance, due to the defendant, Lisa Frank's failure to timely provide artwork 331 00:26:10,580 --> 00:26:14,525 for the Ipsy sales order, Glamour Dolls missed the artwork deadline and was forced 332 00:26:14,525 --> 00:26:20,139 to pay a fine in the amount of $50,500." The filing continued on and said that 333 00:26:20,139 --> 00:26:24,449 Glamour Dolls was shipping her out samples and then she'd be like - 10 business days 334 00:26:24,449 --> 00:26:29,500 later - "Oh I lost them, can you send more of them?" It's like, "wait what? What?" 335 00:26:29,500 --> 00:26:33,610 And in this case, they may not have more samples because they requested a certain 336 00:26:33,610 --> 00:26:39,167 number of samples from the lab and then they mail the samples to Lisa Frank and 337 00:26:39,167 --> 00:26:43,137 then Lisa loses them so then they have to ask the lab for more samples and they have 338 00:26:43,137 --> 00:26:46,897 to pay for that and then get those samples and then send those - wait for 339 00:26:46,897 --> 00:26:50,727 those to come in - then send those to Lisa and then they have to wait for Lisa to 340 00:26:50,727 --> 00:26:55,077 approve those. Do you see how it's just dragging everything out? And you remember 341 00:26:55,077 --> 00:26:59,750 how I said as part of the contract - this was so, so if this is how it happened - 342 00:26:59,750 --> 00:27:03,750 that part of the contract was that Lisa would get her artwork back and that's 343 00:27:03,750 --> 00:27:09,326 what she did. She used that artwork on the Morphe products. The artwork she made for 344 00:27:09,326 --> 00:27:14,385 Glamour Dolls. You can see it on the Trapper Keeper-style palette that Morphe 345 00:27:14,385 --> 00:27:19,340 had made. But to be true to the title of this video, Lisa says that "Glamour Dolls 346 00:27:19,340 --> 00:27:23,080 failed to comply with the inspection and approval process. Lisa's gonna have to 347 00:27:23,080 --> 00:27:26,970 prove this in court. She's gonna have to show them the evidence that Glamour Dolls 348 00:27:26,970 --> 00:27:30,890 didn't go through the proper approval process because even if it's unfair - 349 00:27:30,890 --> 00:27:34,920 this is the thing about the law - even if it's unfair, even if it's unreasonable, if 350 00:27:34,920 --> 00:27:38,760 Glamour Dolls signed that contract and said that they were gonna follow a certain 351 00:27:38,760 --> 00:27:43,090 process, they had to follow that process, even if it's bull****. And if Lisa can 352 00:27:43,090 --> 00:27:46,820 prove that they did things that were against the process, then she had a right 353 00:27:46,820 --> 00:27:52,007 to terminate the contract and get her artwork and then sell it to Morphe. It's 354 00:27:52,007 --> 00:27:56,631 just so fu***d up! [laughter] It's just so messed up! But we definitely need to 355 00:27:56,631 --> 00:28:02,143 end this video the same way we ended the last one in that the most current ruling 356 00:28:02,143 --> 00:28:06,935 by the judge for the 9 claims that Glamour Dolls has against Lisa Frank - the judge 357 00:28:06,935 --> 00:28:11,754 only dismissed part of claim 1. That was the breach of contract; they partially 358 00:28:11,754 --> 00:28:16,548 dismissed that but the judge says that Glamour Dolls can go forward on part of 359 00:28:16,548 --> 00:28:21,695 the breach of contract and everything else - including unjust enrichment, fraud, 360 00:28:21,695 --> 00:28:25,365 defamation, and all of those things - that they're moving forward with those 361 00:28:25,365 --> 00:28:29,795 claims, which means that the judge thinks that Glamour Dolls has enough evidence to 362 00:28:29,795 --> 00:28:33,728 support that these things happened. Not that Lisa isn't going to counter with 363 00:28:33,728 --> 00:28:37,974 something else but Glamour Dolls does have a case to present. And also like I 364 00:28:37,974 --> 00:28:43,212 mentioned in the last video, the last court filing for this was January 24th, 365 00:28:43,212 --> 00:28:47,919 2024, so this is going to be ongoing, so I imagine at some point, there will be a 366 00:28:47,919 --> 00:28:51,992 part 3. I don't imagine it will be soon but I said that last time, so [laughter] 367 00:28:51,992 --> 00:28:55,862 who knows? At this point my friend, it is your turn in the collective brain of 368 00:28:55,862 --> 00:28:59,992 makeup awesomeness. I would love to know your thoughts on this new information that 369 00:28:59,992 --> 00:29:04,192 was sent to me and thank you again so much to the person who calls themself "Fake 370 00:29:04,192 --> 00:29:08,341 Gothic Girl," thank you for sending me the link to this court document that I 371 00:29:08,341 --> 00:29:13,265 previously didn't have access to. It really opened my eyes to a lot of things 372 00:29:13,265 --> 00:29:19,096 and hopefully it added some context to you - if you watch the first piece - to what 373 00:29:19,096 --> 00:29:22,901 Lisa was saying about what was happening and what her counter suit is all about. 374 00:29:22,901 --> 00:29:26,791 Let me know any and all thoughts down in the comment section down below. Thank you 375 00:29:26,791 --> 00:29:30,611 so so much for watching, I hope you enjoy. If you would like to hang out just a 376 00:29:30,611 --> 00:29:34,291 little bit longer, YouTube should be recommending a couple of videos over here 377 00:29:34,291 --> 00:29:38,151 to watch. I'm gonna put a previous episode of "Behind the Controversy" down there. 378 00:29:38,151 --> 00:29:41,631 In case you didn't see it, that's a really good one. If you would like to 379 00:29:41,631 --> 00:29:45,241 watch the top one, that one YouTube's picking for you based on your viewing 380 00:29:45,241 --> 00:29:48,871 history, which video they think that you're gonna like. But if you gotta go 381 00:29:48,871 --> 00:29:52,501 cuz you have things that you gotta do, I get it. Thank you for hanging out as 382 00:29:52,501 --> 00:29:56,341 long as you did and mad love to you and I will see you in a video very very soon. 383 00:29:56,341 --> 00:29:57,641 Bye!