WEBVTT 00:00:00.000 --> 00:00:04.953 Glamour Dolls failed to comply with those obligations when it engaged in a 00:00:04.953 --> 00:00:12.523 failed online advertising campaign on Kickstarter, using LFI, Lisa Frank's brand 00:00:12.523 --> 00:00:19.633 without LFI's approval and then refused to pay royalties due when LFI properly 00:00:19.633 --> 00:00:25.249 terminated the party's contracts as a result of Glamour Dolls' misconduct. 00:00:25.249 --> 00:00:29.648 Wait a minute. She didn't know about the Kickstarter? Hello my friend, I will 00:00:29.648 --> 00:00:35.334 honestly tell you that until late last night, I did not think that I was filming 00:00:35.334 --> 00:00:39.453 a video about Lisa Frank and Glamour Dolls today. I actually had a full video 00:00:39.453 --> 00:00:45.318 planned about preservative-free cosmetics and how freaking ridiculous and dangerous 00:00:45.318 --> 00:00:50.193 preservative-free cosmetics are. But then I got a very interesting comment from a 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 00:00:55.306 --> 00:01:02.664 that I had not previously had access to. This document is Lisa Frank's point of 00:01:02.664 --> 00:01:07.464 view. It is her counter suit. This is Lisa Frank saying "Glamour Dolls is the bad 00:01:07.464 --> 00:01:12.309 guy, not me. I didn't do anything wrong - they're the ones that did something 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 00:01:17.763 --> 00:01:22.622 in the court documents is the reason why she pulled out of her contract with 00:01:22.622 --> 00:01:28.807 Glamour Dolls that left backers of the Kickstarter out all of their money - over 00:01:28.807 --> 00:01:36.793 $400,000 of their money, including my money. My $75? Gone. If you have no idea 00:01:36.793 --> 00:01:41.555 what I'm talking about, that's because this is Part 2. I strongly strongly 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 00:01:46.848 --> 00:01:50.468 a card. It is the background for this video - this video might not make sense 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 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 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. 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 00:02:08.470 --> 00:02:13.520 single view is about 40 minutes. That has literally never happened on my channel. 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 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 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 00:02:27.898 --> 00:02:32.378 that background knowledge. And also side note, I mentioned this at the end of, 00:02:32.378 --> 00:02:38.022 the video, but there's probably about 40 comments mentioning Bailey Sarian's video 00:02:38.022 --> 00:02:43.651 on Lisa Frank, based on the Jezebel article that we talked about in the first 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 00:02:48.140 --> 00:02:53.735 collaborated with Bailey. Bailey did a fantastic job on that video. That video is 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, 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 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 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 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 00:03:19.745 --> 00:03:23.794 lawyer language in this that was difficult to understand. So if you would like to 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 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 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 00:03:38.677 --> 00:03:43.982 end on December 31st of 2017 - that matches up with Glamour Dolls' side, so 00:03:43.982 --> 00:03:48.780 I'm assuming there's legal contracts, so there's evidence of this. So Glamour Dolls 00:03:48.780 --> 00:03:54.669 in that original contract, agreed to pay Lisa Frank 15% royalty on the net sales 00:03:54.669 --> 00:03:59.877 of the products made under the deal, with a minimum payment of $100,000 for the 00:03:59.877 --> 00:04:06.083 duration of the agreement, including a $25,000 advance. Glamour Dolls promised to 00:04:06.083 --> 00:04:10.593 do their best, to make, sell, promote, and market the products to get as many sales 00:04:10.593 --> 00:04:15.450 as possible, always focusing on high quality. Now this part is very very 00:04:15.450 --> 00:04:20.843 important because this is really the root of why everything went wrong. They had to 00:04:20.843 --> 00:04:26.337 get Lisa Frank's approval on literally everything, from the design concepts to 00:04:26.337 --> 00:04:31.522 the artwork, to the molds for production, to the final product samples before going 00:04:31.522 --> 00:04:37.272 into production. Lisa Frank had the right to approve or reject the elements and 00:04:37.272 --> 00:04:43.121 Glamour Dolls had to follow Lisa Frank's directions on quality standards. Now 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, 00:04:48.002 --> 00:04:53.022 for designs, Glamour Dolls had to wait up to 10 business days - that's about two 00:04:53.022 --> 00:04:58.255 weeks or so - for Lisa Frank to approve or reject anything that they submitted to 00:04:58.255 --> 00:05:02.861 her. If Lisa didn't respond in time, Glamour Dolls was allowed to ask after 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 00:05:08.139 --> 00:05:12.324 reject this or I need an approval." But this is the kicker! Because even after 00:05:12.324 --> 00:05:16.731 approval, and remember, this is according to Lisa herself, Lisa could stop the 00:05:16.731 --> 00:05:20.672 production and distribution of the products if they didn't meet her quality 00:05:20.672 --> 00:05:24.092 standards. That's a subjective thing - that is not something that can be 00:05:24.092 --> 00:05:27.800 measured. Lisa can just for any reason, just say "This doesn't meet my quality 00:05:27.800 --> 00:05:31.911 standards" and stop production at any point. And it wasn't just for production 00:05:31.911 --> 00:05:36.937 of product. It also had to do with advertising, packaging, display methods, 00:05:36.937 --> 00:05:43.219 press releases - anything using Lisa Frank artwork - Glamour Dolls had to run this by 00:05:43.219 --> 00:05:47.984 Lisa. They had to wait for those 10 business days and then if she didn't 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, 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 00:05:56.672 --> 00:06:01.660 business days. So remember this original contract that I personally believe was to 00:06:01.660 --> 00:06:07.685 create the blush, the highlighter, and the two brushes - that contract was ending 00:06:07.685 --> 00:06:12.313 in December. But remember the Kickstarter had started in February. We're now in 00:06:12.313 --> 00:06:18.297 December. February - they promised backers 10 additional products beyond these four 00:06:18.297 --> 00:06:22.615 that had already been funded. Lisa's contract is about to end, so they need to 00:06:22.615 --> 00:06:28.366 start a new contract. This is what Lisa says was in the new contract: same 15% 00:06:28.366 --> 00:06:35.043 royalty on the net sales of the products plus 20% royalty on sales made directly to 00:06:35.043 --> 00:06:39.995 retail customers. So this would be if people bought it off of Ipsy's marketplace 00:06:39.995 --> 00:06:43.995 or if people bought it from Hot Topic, or at one point they were talking to 00:06:43.995 --> 00:06:49.224 Walmart - any of those, Lisa would get a 20% royalty off of. Beyond that, in the 00:06:49.224 --> 00:06:55.889 first contract, Lisa asked for at least $100,000 for her fees. In the new 00:06:55.889 --> 00:07:02.015 contract, Lisa upped that to $500,000. That included an up front payment of 00:07:02.015 --> 00:07:08.100 $125,000 that needed to be paid when the contract was signed. Three more payments 00:07:08.100 --> 00:07:13.909 would be paid throughout the year to total that $500,000. The rules for making the 00:07:13.909 --> 00:07:18.080 products were pretty much the same as the first contract. All of the levels of "you 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 00:07:21.990 --> 00:07:25.750 - all of that was pretty much the same. The only thing that changed, which we'll 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 00:07:31.088 --> 00:07:34.917 approval. So Lisa has already approved the final draft of the product, they have 00:07:34.917 --> 00:07:38.917 put that into production, they now have the products - they've got thousands and 00:07:38.917 --> 00:07:42.962 thousands and thousands of these products - they don't have to send those products 00:07:42.962 --> 00:07:47.372 to Lisa for approval anymore. But there is a clause - because of course there is - 00:07:47.372 --> 00:07:51.773 if there were any production problems, if after all of these things were sent out 00:07:51.773 --> 00:07:55.583 Lisa decided that there was a production problem, there was something 00:07:55.583 --> 00:08:00.882 she didn't like, Glamour Dolls would have to pay damages for that. What would those 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 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 00:08:10.588 --> 00:08:14.739 immediately if Glamour Dolls broke certain rules, like not following the approval 00:08:14.739 --> 00:08:19.771 process or having production issues 3 times. If Lisa decided that she was 00:08:19.771 --> 00:08:24.425 going to terminate the agreement, Glamour Dolls had to not only stop making 00:08:24.425 --> 00:08:28.325 products, they also they had to stop selling their existing products. Then they 00:08:28.325 --> 00:08:32.968 had to turn over the rights to the artwork. Anything that Lisa had created 00:08:32.968 --> 00:08:38.276 for Glamour Dolls would now be owned by Lisa. And you might be seeing where this 00:08:38.276 --> 00:08:44.093 might be going - maybe if you watched Part 1. Because she did that. That happened. 00:08:44.093 --> 00:08:49.826 In context, you have to remember that this is 3 months past the date that Glamour 00:08:49.826 --> 00:08:55.280 Dolls had promised products would be done and shipped to backers. So they are deep 00:08:55.280 --> 00:09:00.691 deep in it now. They are sending out that digital Christmas card, where people can 00:09:00.691 --> 00:09:04.691 send it to their families, saying "Hey, you know, you might be getting some Lisa 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 00:09:09.522 --> 00:09:13.954 where we're at. A lot of the backers are already irritated by this point. From 00:09:13.954 --> 00:09:17.954 Lisa's side, she says in her court documents that LFI, or Lisa Frank 00:09:17.954 --> 00:09:22.328 Incorporated, fully performed its obligations under the license agreements - 00:09:22.328 --> 00:09:26.707 I do believe Glamour Dolls would argue against that. They say specifically 00:09:26.707 --> 00:09:30.977 Glamour Dolls repeatedly failed to meet their responsibilities under the 00:09:30.977 --> 00:09:36.270 agreements they had with Lisa Frank. This is how Lisa says Glamour Dolls messed up. 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 00:09:40.636 --> 00:09:45.067 she says - she says they didn't put in enough effort to produce, distribute, 00:09:45.067 --> 00:09:49.242 promote, and sell the products that they were supposed to. She says that they 00:09:49.242 --> 00:09:53.242 didn't aim to sell as many high quality products as they could, that they had 00:09:53.242 --> 00:09:57.763 signed off in their contract. She says that they use Lisa Frank artwork in ads 00:09:57.763 --> 00:10:02.113 and packaging without getting approval first, which was against their rules of 00:10:02.113 --> 00:10:06.123 the contract. She says Glamour Dolls was late in making and delivering the 00:10:06.123 --> 00:10:10.956 products, which they were. She says that Glamour Dolls didn't follow the agreed 00:10:10.956 --> 00:10:15.058 upon process for getting products inspected and approved, that they didn't 00:10:15.058 --> 00:10:19.058 pay the royalties and the minimum amounts that they were supposed to, and that they 00:10:19.058 --> 00:10:23.834 used the Kickstarter to sell products without getting the okay from Lisa Frank 00:10:23.834 --> 00:10:29.372 Incorporated, which was of course not allowed. Finally, they say that Glamour 00:10:29.372 --> 00:10:33.806 Dolls promised products to backers and then never shipped them out, which is 00:10:33.806 --> 00:10:38.875 true. But the question is: why didn't they ship them out? What was stopping them 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 00:10:43.501 --> 00:10:47.261 still in Lisa's perspective, so let's follow that. Lisa says that even through 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 00:10:51.121 --> 00:10:54.771 continued to try to work with Glamour Dolls to make things work. She says she 00:10:54.771 --> 00:11:00.325 did this only because she felt like, if she didn't continue with Glamour Dolls and 00:11:00.325 --> 00:11:04.676 see this through and get the backers what they ordered, that it would damage Lisa 00:11:04.676 --> 00:11:09.529 Frank. It would damage her and her brand. It wasn't about making sure that people 00:11:09.529 --> 00:11:13.319 got what they paid for, it was about the damage it would cause to her reputation 00:11:13.319 --> 00:11:17.189 and her brand's reputation. She says in her statement that, you know, that Glamour 00:11:17.189 --> 00:11:20.849 Dolls had made all these promises and they failed to go through on them, that 00:11:20.849 --> 00:11:24.569 they even said that they were shipping things to people that they never shipped 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 00:11:28.199 --> 00:11:33.146 seen, anybody that was supposed to get the eyeshadow and the bronzer and the 00:11:33.146 --> 00:11:37.865 postcard did get those things. There is some question, at least in the comments 00:11:37.865 --> 00:11:42.014 underneath my last video of whether people who ordered the brush separately, whether 00:11:42.014 --> 00:11:46.014 they actually got their brush. So maybe that's what Lisa is talking about. Lisa 00:11:46.014 --> 00:11:50.675 says that Glamour Dolls ignored rules that they had to follow to get Lisa's 00:11:50.675 --> 00:11:56.099 approval before making anything. She says that they attempted to make or change 00:11:56.099 --> 00:12:01.372 products without talking to her first. And also that they didn't give her the 00:12:01.372 --> 00:12:06.449 samples required that she needed to review. The perspective here is that 00:12:06.449 --> 00:12:11.938 because of those failures, people started blaming Lisa Frank and not Glamour Dolls, 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 00:12:15.818 --> 00:12:19.748 people began to think that Lisa Frank was scamming them, leaving negative comments 00:12:19.748 --> 00:12:25.528 and complaints online that damaged LFI's reputation. It was only because Glamour 00:12:25.528 --> 00:12:30.719 Dolls broke their side of the contract so many times that she ended the contract 00:12:30.719 --> 00:12:35.972 formally in July of 2018, which is what Glamour Dolls had said, that she abruptly 00:12:35.972 --> 00:12:40.459 just ended the contract. What Glamour Dolls had said was before she ended the 00:12:40.459 --> 00:12:47.508 contract, she required them to pay that final $125,000 to her and then once she 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 00:12:51.670 --> 00:12:56.543 do that when she took the money. Supposedly, LFI reminded Glamour Dolls 00:12:56.543 --> 00:13:01.321 that they needed to do the things that were in the contract, that if she ended 00:13:01.321 --> 00:13:05.686 it, that they needed to do - things like returning all the artwork and paying any 00:13:05.686 --> 00:13:10.721 royalties owed. However, she says Glamour Dolls didn't pay what they owed or follow 00:13:10.721 --> 00:13:15.360 through on other responsibilities after the termination, leading to more problems 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 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 00:13:24.306 --> 00:13:27.956 of the money that they should have received under the agreements with Glamour 00:13:27.956 --> 00:13:33.637 Dolls - the exact amount of how much she should be paid would be decided at trial. 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 00:13:37.547 --> 00:13:43.927 lawyer's fees as allowed by law. She also wants to receive interest on any money 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 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 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 00:13:59.860 --> 00:14:03.923 physically and mentally impossible for me but that's a lot of money. And finally, 00:14:03.923 --> 00:14:07.453 she's like "And if the court wants to give me something else, if you think 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 00:14:11.283 --> 00:14:16.001 is Lisa's filing. I have lots of thoughts my friend. Do you have thoughts? Because 00:14:16.001 --> 00:14:19.619 if you have thoughts, put 'em in the comment section because I'm wondering if 00:14:19.619 --> 00:14:23.501 we have the exact same thoughts. That's what the collective brain is all about, is 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 00:14:27.591 --> 00:14:31.371 if you have thoughts, definitely leave them in the comments. I'm gonna tell you 00:14:31.371 --> 00:14:36.809 mine. Okay, so I have questions. [laughs] I have 3 major questions. The first one is 00:14:36.809 --> 00:14:42.985 "What was the timeline for approving the Kickstarter?" Because eventually, Lisa was 00:14:42.985 --> 00:14:46.985 participating in the Kickstarter, at least it looks like she was participating in the 00:14:46.985 --> 00:14:52.680 Kickstarter. So I am curious what Glamour Dolls' side of this is, in that do they 00:14:52.680 --> 00:14:56.920 say that they did the Kickstarter without talking to Lisa? Because I noticed 00:14:56.920 --> 00:15:03.155 something that was in their paperwork that they filed. They label Kickstarter as a 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 00:15:08.224 --> 00:15:14.247 Ipsy and Hot Topic; they also list Kickstarter. So it was seen by them - it 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 00:15:19.931 --> 00:15:25.560 the contract, that they had to clear what retailers they were gonna work with with 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 00:15:29.608 --> 00:15:36.921 Frank artwork and they had to promote this using Lisa Frank branded stuff for the 00:15:36.921 --> 00:15:41.464 Kickstarter before it even started. Remember Candy's video. I wish I could 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 00:15:45.304 --> 00:15:50.970 you the full video. But Candy clearly uses Lisa Frank artwork in the video to 00:15:50.970 --> 00:15:55.317 promote this Kickstarter. If Lisa didn't know about the Kickstarter, then she 00:15:55.317 --> 00:15:59.548 didn't approve the artwork to be used in Candy's video or any other promotional 00:15:59.548 --> 00:16:04.473 things that they did for the Kickstarter. So then Lisa would have them on that. 00:16:04.473 --> 00:16:08.203 That's what I'm thinking most likely happened - I mean of course it's possible 00:16:08.203 --> 00:16:12.473 that Glamour Dolls did talk to Lisa and tell her about the Kickstarter beforehand 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 00:16:16.333 --> 00:16:20.253 is saying "No, that didn't happen." So my next question associated with that - 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 00:16:25.386 --> 00:16:30.514 about the 10 products that they promised to the Kickstarter backers? When did she 00:16:30.514 --> 00:16:34.691 agree to that?" Because it seems like that first contract from 2016 was really for 00:16:34.691 --> 00:16:39.101 those 4 products that they actually did produce and put out there - the blush 00:16:39.101 --> 00:16:43.975 brush, the crease brush, the bronzer, and the eyeshadows. Single eyeshadows, not 00:16:43.975 --> 00:16:48.123 eyeshadow palettes, the single eyeshadows. The ones that were sold at Hot Topic. It 00:16:48.123 --> 00:16:53.612 is very very likely that Lisa was on board with the Kickstarter about a month after 00:16:53.612 --> 00:16:59.264 the Kickstarter started because in March, they show posts that are specifically from 00:16:59.264 --> 00:17:05.496 Lisa, participating in encouraging people to enter these contests, to perform these 00:17:05.496 --> 00:17:10.818 tasks, to show their nail looks and things like that. Lisa is posting there. So if 00:17:10.818 --> 00:17:14.857 this is really Lisa posting - which it doesn't really make any sense to me that 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 00:17:19.309 --> 00:17:22.929 Lisa - they would have to explain that so it doesn't really make sense to me 00:17:22.929 --> 00:17:27.309 that that wasn't actually Lisa posting. But she was clearly participating and 00:17:27.309 --> 00:17:31.938 on board in March. Another clue that Lisa was involved in the Kickstarter from the 00:17:31.938 --> 00:17:36.433 launch of the Kickstarter was that just a few days after the launch, Glamour 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 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 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 00:17:50.558 --> 00:17:55.539 and that Lisa had something really special planned if they made it to 10,000 backers. 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 00:18:01.460 --> 00:18:08.801 "Why the hell did Glamour Dolls sign this terrible ass contract?" This is the most 00:18:08.801 --> 00:18:14.955 bull**** contract I think I have ever read. It is absolutely nuts. The part that 00:18:14.955 --> 00:18:19.917 is the most unbelievable for me is that Glamour Dolls signed this is the whole 00:18:19.917 --> 00:18:25.418 approval process. It is absolutely ridiculous. Both sides agree that this was 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 00:18:29.418 --> 00:18:33.418 Trapper Keeper palettes as an example. So they have an idea that they want to 00:18:33.418 --> 00:18:37.418 create a palette that looks like a Trapper Keeper. So they get this plain white 00:18:37.418 --> 00:18:42.527 Trapper Keeper palette made by the factory. Glamour Dolls then takes this 00:18:42.527 --> 00:18:47.145 white packaging, this plain plastic packaging that's the mock-up, send it to 00:18:47.145 --> 00:18:51.145 Lisa, wait 10 business days. If she doesn't answer, they have to poke her and 00:18:51.145 --> 00:18:55.264 get her to give feedback. If she doesn't approve of it, Glamour Dolls then takes 00:18:55.264 --> 00:18:59.320 her ideas, whatever she wants changed, and lets the manufacturing facility know. Then 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 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 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 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 00:19:21.085 --> 00:19:25.268 to make the artwork. Once the artwork comes in, again, they send it over to the 00:19:25.268 --> 00:19:29.723 manufacturer. The manufacturer puts it on the product. Then Glamour Dolls has to 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 00:19:34.916 --> 00:19:39.093 days again. If she doesn't respond, then they poke her - same process all over 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 00:19:44.583 --> 00:19:50.011 freaking ridiculous? Because it's not even over then! Even after Lisa has approved 00:19:50.011 --> 00:19:54.754 the final designed product, when they manufacture it - let's say they make 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 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 00:20:04.747 --> 00:20:08.747 to customers. And I will tell you my friend, this actually happened - 00:20:08.747 --> 00:20:13.719 according to Glamour Dolls - with the vegan leather makeup bag. This is the 00:20:13.719 --> 00:20:17.489 draft picture of the vegan leather makeup bag that was not designed, that people 00:20:17.489 --> 00:20:22.574 were really excited about. This is the final design that was supposedly "The 00:20:22.574 --> 00:20:27.198 One," the makeup bag. Well it turns out, according to Glamour Dolls, Lisa didn't 00:20:27.198 --> 00:20:31.297 like this and after they had printed 10,000 of these, Lisa said she didn't 00:20:31.297 --> 00:20:35.451 want it to be vegan leather anymore; she wanted it to be glitter plastic. And 00:20:35.451 --> 00:20:40.669 because of the sh**** ass contract that they signed, they couldn't sell those 00:20:40.669 --> 00:20:46.308 10,000 bags that they had already made because she had approved the sample. They 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 00:20:52.344 --> 00:20:56.388 is this? The fact that Glamour Dolls signed this contract, did they not have 00:20:56.388 --> 00:21:03.058 a lawyer read it? Like what happened? How did this get through? From the very jump, 00:21:03.058 --> 00:21:06.838 this should have just never happened and I'm sure Glamour Dolls in hindsight is 00:21:06.838 --> 00:21:13.615 thinking the exact same thing. And my third question is "Why would they start a 00:21:13.615 --> 00:21:20.422 Kickstarter in February, knowing that Lisa's contract was ending in December?" 00:21:20.422 --> 00:21:25.036 Because that's where they really got screwed. This is what I'm thinking: I'm 00:21:25.036 --> 00:21:30.356 thinking Lisa designed all of the products and got everything going for those first 00:21:30.356 --> 00:21:35.952 four products before the Kickstarter even started. And that was why Glamour 00:21:35.952 --> 00:21:39.682 Dolls wanted to do more work with her. They were like "Yes, this was so smooth, 00:21:39.682 --> 00:21:43.582 this was so easy. Let's keep this going a little longer. We have until December, 00:21:43.582 --> 00:21:47.532 it's only February. We have all this time. We pushed out those four products pretty 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 00:21:51.312 --> 00:21:55.642 this." Glamour Dolls said publicly that they didn't start having problems with 00:21:55.642 --> 00:21:59.952 Lisa slowing down the process until June of 2017. So that was after the Kickstarter 00:21:59.952 --> 00:22:03.672 had already started, but before the estimated ship date that they told the 00:22:03.672 --> 00:22:07.652 backers of September. And it makes sense because if they started signing the 00:22:07.652 --> 00:22:12.789 contract in June of 2016, by February, they had made and designed 4 products. 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 00:22:16.599 --> 00:22:20.119 of the approvals by the time that the Kickstarter started so that's about 8 00:22:20.119 --> 00:22:23.789 months. So they're thinking "Well yeah this was so easy, we should be able to 00:22:23.789 --> 00:22:27.579 push out more products by December, by the time Lisa's contract ends." So now I 00:22:27.579 --> 00:22:32.604 shall present to you the worst case scenario of Lisa's a raging b****. 00:22:32.604 --> 00:22:36.314 [laughter] That's where we're gonna go with this. This is worst case scenario 00:22:36.314 --> 00:22:40.645 what happened, in that Lisa knew her contract was ending in December, she knew 00:22:40.645 --> 00:22:45.510 that she could slow down this process in order to get a new contract in December 00:22:45.510 --> 00:22:49.310 and price gauge the hell out of Glamour Dolls. She knew that they had already 00:22:49.310 --> 00:22:54.196 promised all of these products to the backers. She knew that they probably 00:22:54.196 --> 00:22:59.320 given her $125,000 of the backers' money. She knew that Glamour Dolls was already 00:22:59.320 --> 00:23:03.829 using the backer money in order to get these samples and ship them to her. The 00:23:03.829 --> 00:23:07.649 $370,000 that the backers had paid, probably a lot of it was already spent 00:23:07.649 --> 00:23:11.829 because that's why they started wanting - needing more money. They started selling 00:23:11.829 --> 00:23:16.352 the products on BackerKit, they started selling the crease brush on their website, 00:23:16.352 --> 00:23:21.089 they really started courting Hot Topic to try to sell products over there because 00:23:21.089 --> 00:23:26.612 Lisa was taking all of the Kickstarter backers' money for herself and they were 00:23:26.612 --> 00:23:30.542 using it for the manufacturing of these products and they knew it wasn't enough to 00:23:30.542 --> 00:23:34.292 see this whole project through because remember they've got 10 products they're 00:23:34.292 --> 00:23:38.798 trying to make by December. So time passes, Lisa drags this out, drags this 00:23:38.798 --> 00:23:43.406 out, and then drops the bomb on Glamour Dolls: "If you want this to continue, 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 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 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 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 00:23:59.649 --> 00:24:03.579 of it. Another place that they probably spent the backers' money was on Wengie 00:24:03.579 --> 00:24:08.784 because remember the call that Peter did with the backers? He mentions very 00:24:08.784 --> 00:24:11.244 briefly paying for a video. I'll play that for you. 00:24:11.244 --> 00:24:15.244 (Peter): We actually didn't make a profit off of this Kickstarter campaign. I know 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 00:24:19.524 --> 00:24:23.774 of it. But, um, we have to manufacture all those goods, uh, we have licensing fees 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 00:24:29.184 --> 00:24:30.710 for all these different things. 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 00:24:34.619 --> 00:24:38.235 and paid Wengie to make that video. Who knows how much he paid her because 00:24:38.235 --> 00:24:41.855 influencer rates back then, you know, it was brand new, you know, influencers 00:24:41.855 --> 00:24:45.635 getting paid for sponsored videos and things like that. I have no idea how much 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 00:24:49.535 --> 00:24:53.105 why they needed to raise more money. Because now in December, they not only 00:24:53.105 --> 00:24:56.645 have to get all of these 10 products manufactured but they also have to pay 00:24:56.645 --> 00:25:01.725 Lisa this $500,000. Lisa officially had Glamour Dolls by the unicorn balls. I mean 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 00:25:07.298 --> 00:25:12.576 it played out, other than to sign that contract and just hope for the best. If 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 00:25:16.697 --> 00:25:21.428 $500,000, we're cutting off the contract now." How do they pay back the backers? 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 00:25:26.881 --> 00:25:30.881 money to pay back the backers so they are absolutely screwed. Some other things 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 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, 00:25:39.886 --> 00:25:45.285 there'll be a part 3 [laughter] of this video is that they were saying more 00:25:45.285 --> 00:25:50.157 things about how Lisa interfered with the production of the product. So in the court 00:25:50.157 --> 00:25:55.429 filing, it says "Lisa Frank frequently and unreasonably rejected already manufactured 00:25:55.429 --> 00:26:00.883 samples without being specific as to the reason for disapproval." In their filing, 00:26:00.883 --> 00:26:04.543 they said that there was a problem with the Ipsy products. They said "in one 00:26:04.543 --> 00:26:10.580 instance, due to the defendant, Lisa Frank's failure to timely provide artwork 00:26:10.580 --> 00:26:14.525 for the Ipsy sales order, Glamour Dolls missed the artwork deadline and was forced 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 00:26:20.139 --> 00:26:24.449 Glamour Dolls was shipping her out samples and then she'd be like - 10 business days 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?" 00:26:29.500 --> 00:26:33.610 And in this case, they may not have more samples because they requested a certain 00:26:33.610 --> 00:26:39.167 number of samples from the lab and then they mail the samples to Lisa Frank and 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 00:26:43.137 --> 00:26:46.897 to pay for that and then get those samples and then send those - wait for 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 00:26:50.727 --> 00:26:55.077 approve those. Do you see how it's just dragging everything out? And you remember 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 - 00:26:59.750 --> 00:27:03.750 that part of the contract was that Lisa would get her artwork back and that's 00:27:03.750 --> 00:27:09.326 what she did. She used that artwork on the Morphe products. The artwork she made for 00:27:09.326 --> 00:27:14.385 Glamour Dolls. You can see it on the Trapper Keeper-style palette that Morphe 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 00:27:19.340 --> 00:27:23.080 failed to comply with the inspection and approval process. Lisa's gonna have to 00:27:23.080 --> 00:27:26.970 prove this in court. She's gonna have to show them the evidence that Glamour Dolls 00:27:26.970 --> 00:27:30.890 didn't go through the proper approval process because even if it's unfair - 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 00:27:34.920 --> 00:27:38.760 Glamour Dolls signed that contract and said that they were gonna follow a certain 00:27:38.760 --> 00:27:43.090 process, they had to follow that process, even if it's bull****. And if Lisa can 00:27:43.090 --> 00:27:46.820 prove that they did things that were against the process, then she had a right 00:27:46.820 --> 00:27:52.007 to terminate the contract and get her artwork and then sell it to Morphe. It's 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 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 00:28:02.143 --> 00:28:06.935 by the judge for the 9 claims that Glamour Dolls has against Lisa Frank - the judge 00:28:06.935 --> 00:28:11.754 only dismissed part of claim 1. That was the breach of contract; they partially 00:28:11.754 --> 00:28:16.548 dismissed that but the judge says that Glamour Dolls can go forward on part of 00:28:16.548 --> 00:28:21.695 the breach of contract and everything else - including unjust enrichment, fraud, 00:28:21.695 --> 00:28:25.365 defamation, and all of those things - that they're moving forward with those 00:28:25.365 --> 00:28:29.795 claims, which means that the judge thinks that Glamour Dolls has enough evidence to 00:28:29.795 --> 00:28:33.728 support that these things happened. Not that Lisa isn't going to counter with 00:28:33.728 --> 00:28:37.974 something else but Glamour Dolls does have a case to present. And also like I 00:28:37.974 --> 00:28:43.212 mentioned in the last video, the last court filing for this was January 24th, 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 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] 00:28:51.992 --> 00:28:55.862 who knows? At this point my friend, it is your turn in the collective brain of 00:28:55.862 --> 00:28:59.992 makeup awesomeness. I would love to know your thoughts on this new information that 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 00:29:04.192 --> 00:29:08.341 Gothic Girl," thank you for sending me the link to this court document that I 00:29:08.341 --> 00:29:13.265 previously didn't have access to. It really opened my eyes to a lot of things 00:29:13.265 --> 00:29:19.096 and hopefully it added some context to you - if you watch the first piece - to what 00:29:19.096 --> 00:29:22.901 Lisa was saying about what was happening and what her counter suit is all about. 00:29:22.901 --> 00:29:26.791 Let me know any and all thoughts down in the comment section down below. Thank you 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 00:29:30.611 --> 00:29:34.291 little bit longer, YouTube should be recommending a couple of videos over here 00:29:34.291 --> 00:29:38.151 to watch. I'm gonna put a previous episode of "Behind the Controversy" down there. 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 00:29:41.631 --> 00:29:45.241 watch the top one, that one YouTube's picking for you based on your viewing 00:29:45.241 --> 00:29:48.871 history, which video they think that you're gonna like. But if you gotta go 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 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. 00:29:56.341 --> 00:29:57.641 Bye!