1 00:00:00,000 --> 00:00:05,389 Glamour Dolls failed to comply with those obligations when it engaged in a 2 00:00:05,389 --> 00:00:10,319 failed online advertising campaign on Kickstarter, using LFI, Lisa Frank's brand 3 99:59:59,999 --> 99:59:59,999 without LFI's approval and then refused to pay royalties due when LFI properly 4 99:59:59,999 --> 99:59:59,999 terminated the party's contracts as a result of Glamour Dolls' misconduct. 5 99:59:59,999 --> 99:59:59,999 Wait a minute. She didn't know about the Kickstarter? Hello my friend, I will 6 99:59:59,999 --> 99:59:59,999 honestly tell you that until late last night, I did not think that I was filming 7 99:59:59,999 --> 99:59:59,999 a video about Lisa Frank and Glamour Dolls today. I actually had a full video 8 99:59:59,999 --> 99:59:59,999 planned about preservative-free cosmetics and how freaking ridiculous and dangerous 9 99:59:59,999 --> 99:59:59,999 preservative-free cosmetics are. But then I got a very interesting comment from a 10 99:59:59,999 --> 99:59:59,999 person named "Fake Goth Girl." Okay. I get a link. The link is to a court document 11 99:59:59,999 --> 99:59:59,999 that I had not previously had access to. This document is Lisa Frank's point of 12 99:59:59,999 --> 99:59:59,999 view. It is her counter suit. This is Lisa Frank saying "Glamour Dolls is the bad 13 99:59:59,999 --> 99:59:59,999 guy, not me. I didn't do anything wrong - they're the ones that did something 14 99:59:59,999 --> 99:59:59,999 wrong." So in today's video, I want to go over Lisa's side of things - what she says 15 99:59:59,999 --> 99:59:59,999 in the court documents is the reason why she pulled out of her contract with 16 99:59:59,999 --> 99:59:59,999 Glamour Dolls that left backers of the Kickstarter out all of their money - over 17 99:59:59,999 --> 99:59:59,999 $400,000 of their money, including my money. My $75? Gone. If you have no idea 18 99:59:59,999 --> 99:59:59,999 what I'm talking about, that's because this is Part 2. I strongly strongly 19 99:59:59,999 --> 99:59:59,999 suggest you please watch Part 1 of this. It will be linked below. It will be up in 20 99:59:59,999 --> 99:59:59,999 a card. It is the background for this video - this video might not make sense 21 99:59:59,999 --> 99:59:59,999 if you don't watch that one first. If you don't feel like you have time for an hour 22 99:59:59,999 --> 99:59:59,999 and a half long video, what you can do is you can scrub through the timestamps, kind 23 99:59:59,999 --> 99:59:59,999 of get the idea of what it is. You can also play it on 1.5 speed if you want to. 24 99:59:59,999 --> 99:59:59,999 And I will tell you that the average amount of watch time on that video for a 25 99:59:59,999 --> 99:59:59,999 single view is about 40 minutes. That has literally never happened on my channel. 26 99:59:59,999 --> 99:59:59,999 This is a story that I think you want to hear and and that I think that you are 27 99:59:59,999 --> 99:59:59,999 going to be engaged in if you choose to. That being said, we are starting at Part 28 99:59:59,999 --> 99:59:59,999 2. I'm assuming at this point that you have seen that video and that you have 29 99:59:59,999 --> 99:59:59,999 that background knowledge. And also side note, I mentioned this at the end of, 30 99:59:59,999 --> 99:59:59,999 the video, but there's probably about 40 comments mentioning Bailey Sarian's video 31 99:59:59,999 --> 99:59:59,999 on Lisa Frank, based on the Jezebel article that we talked about in the first 32 99:59:59,999 --> 99:59:59,999 part of this. Yes, I am fully aware of Bailey's video. I have met Bailey. I have 33 99:59:59,999 --> 99:59:59,999 collaborated with Bailey. Bailey did a fantastic job on that video. That video is 34 99:59:59,999 --> 99:59:59,999 more about Lisa Frank as a person, so if you want even more context for the story, 35 99:59:59,999 --> 99:59:59,999 I highly recommend you go watch Bailey's video as well. What we're gonna do with 36 99:59:59,999 --> 99:59:59,999 this part is I'm actually gonna put Lisa Frank's lawsuit on the side of me so if 37 99:59:59,999 --> 99:59:59,999 you are fluent in Legalese, you can follow along and see the match up of what I'm 38 99:59:59,999 --> 99:59:59,999 saying. Surprisingly, a lot of is is pretty clear cut and there isn't a ton of 39 99:59:59,999 --> 99:59:59,999 lawyer language in this that was difficult to understand. So if you would like to 40 99:59:59,999 --> 99:59:59,999 read along, it is going to be next to me over here. Here we go. So this is what 41 99:59:59,999 --> 99:59:59,999 Lisa says. This is her side of things. This is all about the deal in 2016, the 42 99:59:59,999 --> 99:59:59,999 original deal that she had. Lisa says they struck the deal in June of 2016 that would 43 99:59:59,999 --> 99:59:59,999 end on December 31st of 2017 - that matches up with Glamour Dolls' side, so 44 99:59:59,999 --> 99:59:59,999 I'm assuming there's legal contracts, so there's evidence of this. So Glamour Dolls 45 99:59:59,999 --> 99:59:59,999 in that original contract, agreed to pay Lisa Frank 15% royalty on the net sales 46 99:59:59,999 --> 99:59:59,999 of the products made under the deal, with a minimum payment of $100,000 for the 47 99:59:59,999 --> 99:59:59,999 duration of the agreement, including a $25,000 advance. Glamour Dolls promised to 48 99:59:59,999 --> 99:59:59,999 do their best, to make, sell, promote, and market the products to get as many sales 49 99:59:59,999 --> 99:59:59,999 as possible, always focusing on high quality. Now this part is very very 50 99:59:59,999 --> 99:59:59,999 important because this is really the root of why everything went wrong. They had to 51 99:59:59,999 --> 99:59:59,999 get Lisa Frank's approval on literally everything, from the design concepts to 52 99:59:59,999 --> 99:59:59,999 the artwork, to the molds for production, to the final product samples before going 53 99:59:59,999 --> 99:59:59,999 into production. Lisa Frank had the right to approve or reject the elements and 54 99:59:59,999 --> 99:59:59,999 Glamour Dolls had to follow Lisa Frank's directions on quality standards. Now 55 99:59:59,999 --> 99:59:59,999 listen to this because this is part of the reason why things were taking so long. So, 56 99:59:59,999 --> 99:59:59,999 for designs, Glamour Dolls had to wait up to 10 business days - that's about two 57 99:59:59,999 --> 99:59:59,999 weeks or so - for Lisa Frank to approve or reject anything that they submitted to 58 99:59:59,999 --> 99:59:59,999 her. If Lisa didn't respond in time, Glamour Dolls was allowed to ask after 59 99:59:59,999 --> 99:59:59,999 those 10 business days, "Hey, what's going on? I need a full description of why you 60 99:59:59,999 --> 99:59:59,999 reject this or I need an approval." But this is the kicker! Because even after 61 99:59:59,999 --> 99:59:59,999 approval, and remember, this is according to Lisa herself, Lisa could stop the 62 99:59:59,999 --> 99:59:59,999 production and distribution of the products if they didn't meet her quality 63 99:59:59,999 --> 99:59:59,999 standards. That's a subjective thing - that is not something that can be 64 99:59:59,999 --> 99:59:59,999 measured. Lisa can just for any reason, just say "This doesn't meet my quality 65 99:59:59,999 --> 99:59:59,999 standards" and stop production at any point. And it wasn't just for production 66 99:59:59,999 --> 99:59:59,999 of product. It also had to do with advertising, packaging, display methods, 67 99:59:59,999 --> 99:59:59,999 press releases - anything using Lisa Frank artwork - Glamour Dolls had to run this by 68 99:59:59,999 --> 99:59:59,999 Lisa. They had to wait for those 10 business days and then if she didn't 69 99:59:59,999 --> 99:59:59,999 respond in 10 business days, then they had to poke her about it and be like "Dude, 70 99:59:59,999 --> 99:59:59,999 what's going on?" They had to keep poking her if she didn't respond after those 10 71 99:59:59,999 --> 99:59:59,999 business days. So remember this original contract that I personally believe was to 72 99:59:59,999 --> 99:59:59,999 create the blush, the highlighter, and the two brushes - that contract was ending 73 99:59:59,999 --> 99:59:59,999 in December. But remember the Kickstarter had started in February. We're now in 74 99:59:59,999 --> 99:59:59,999 December. February - they promised backers 10 additional products beyond these four 75 99:59:59,999 --> 99:59:59,999 that had already been funded. Lisa's contract is about to end, so they need to 76 99:59:59,999 --> 99:59:59,999 start a new contract. This is what Lisa says was in the new contract: same 15% 77 99:59:59,999 --> 99:59:59,999 royalty on the net sales of the products plus 20% royalty on sales made directly to 78 99:59:59,999 --> 99:59:59,999 retail customers. So this would be if people bought it off of Ipsy's marketplace 79 99:59:59,999 --> 99:59:59,999 or if people bought it from Hot Topic, or at one point they were talking to 80 99:59:59,999 --> 99:59:59,999 Walmart - any of those, Lisa would get a 20% royalty off of. Beyond that, in the 81 99:59:59,999 --> 99:59:59,999 first contract, Lisa asked for at least $100,000 for her fees. In the new 82 99:59:59,999 --> 99:59:59,999 contract, Lisa upped that to $500,000. That included an up front payment of 83 99:59:59,999 --> 99:59:59,999 $125,000 that needed to be paid when the contract was signed. Three more payments 84 99:59:59,999 --> 99:59:59,999 would be paid throughout the year to total that $500,000. The rules for making the 85 99:59:59,999 --> 99:59:59,999 products were pretty much the same as the first contract. All of the levels of "you 86 99:59:59,999 --> 99:59:59,999 need to send it to Lisa and she needs to approve it" and then the 10 business days 87 99:59:59,999 --> 99:59:59,999 - all of that was pretty much the same. The only thing that changed, which we'll 88 99:59:59,999 --> 99:59:59,999 find out more about in just a minute, is that they did not have to get pre-shipment 89 99:59:59,999 --> 99:59:59,999 approval. So Lisa has already approved the final draft of the product, they have 90 99:59:59,999 --> 99:59:59,999 put that into production, they now have the products - they've got thousands and 91 99:59:59,999 --> 99:59:59,999 thousands of these products - they don't have to send those products to Lisa for 92 99:59:59,999 --> 99:59:59,999 approval anymore. But there is a clause - because of course there is - if there were 93 99:59:59,999 --> 99:59:59,999 any production problems, if after all of these things were sent out and Lisa 94 99:59:59,999 --> 99:59:59,999 decided that there was a production problem, there was something she didn't 95 99:59:59,999 --> 99:59:59,999 like, Glamour Dolls would have to pay damages for that. What would those 96 99:59:59,999 --> 99:59:59,999 damages be? I have no idea, it's not in here. Another thing that's very important 97 99:59:59,999 --> 99:59:59,999 in Lisa's side of the story is that they said that Lisa could end the deal 98 99:59:59,999 --> 99:59:59,999 immediately if Glamour Dolls broke certain rules, like not following the approval 99 99:59:59,999 --> 99:59:59,999 process or having production issues 3 times. If Lisa decided that she was 100 99:59:59,999 --> 99:59:59,999 going to terminate the agreement, Glamour Dolls had to not only stop making 101 99:59:59,999 --> 99:59:59,999 products, they had to stop selling their existing products. Then they had to turn 102 99:59:59,999 --> 99:59:59,999 over the rights to the artwork. Anything that Lisa had created for Glamour Dolls 103 99:59:59,999 --> 99:59:59,999 would now be owned by Lisa. And you might be seeing where this might be going - 104 99:59:59,999 --> 99:59:59,999 maybe if you watched part 1. Because she did that. That happened. In context. you 105 99:59:59,999 --> 99:59:59,999 have to remember that this is 3 months past the date that Glamour Dolls had 106 99:59:59,999 --> 99:59:59,999 promised products would be done and shipped to backers. So they are deep deep 107 99:59:59,999 --> 99:59:59,999 in it now. They are sending out that digital Christmas card, where people can 108 99:59:59,999 --> 99:59:59,999 send it to their families, saying "Hey, you know, you might be getting some Lisa 109 99:59:59,999 --> 99:59:59,999 Frank products that I bought for you at some point. This is what's coming." That's 110 99:59:59,999 --> 99:59:59,999 where we're at. A lot of the backers are already irritated by this point. From 111 99:59:59,999 --> 99:59:59,999 Lisa's side, she says in her court documents that LFI, or Lisa Frank 112 99:59:59,999 --> 99:59:59,999 Incorporated, fully performed its obligations under the license agreements - 113 99:59:59,999 --> 99:59:59,999 I do believe Glamour Dolls would argue against that. They say specifically 114 99:59:59,999 --> 99:59:59,999 Glamour Dolls repeatedly failed to meet their responsibilities under the 115 99:59:59,999 --> 99:59:59,999 agreements they had with Lisa Frank. This is how Lisa says Glamour Dolls messed up. 116 99:59:59,999 --> 99:59:59,999 And remember, she's going to have to prove this for her counter suit. This is what 117 99:59:59,999 --> 99:59:59,999 she says - she says they didn't put in enough effort to produce, distribute, 118 99:59:59,999 --> 99:59:59,999 promote, and sell the products that they were supposed to. She says that they 119 99:59:59,999 --> 99:59:59,999 didn't aim to sell as many high quality products as they could, that they had 120 99:59:59,999 --> 99:59:59,999 signed off in their contract. She says that they use Lisa Frank artwork in ads 121 99:59:59,999 --> 99:59:59,999 and packaging without getting approval first, which was against their rules of 122 99:59:59,999 --> 99:59:59,999 the contract. She says Glamour Dolls was late in making and delivering the 123 99:59:59,999 --> 99:59:59,999 products, which they were. She says that Glamour Dolls didn't follow the agreed 124 99:59:59,999 --> 99:59:59,999 upon process for getting products inspected and approved, that they didn't 125 99:59:59,999 --> 99:59:59,999 pay the royalties and the minimum amounts that they were supposed to, and that they 126 99:59:59,999 --> 99:59:59,999 used the Kickstarter to sell products without getting the okay from Lisa Frank 127 99:59:59,999 --> 99:59:59,999 Incorporated, which was of course not allowed. Finally, they say that Glamour 128 99:59:59,999 --> 99:59:59,999 Dolls promised products to backers and then never shipped them out, which is 129 99:59:59,999 --> 99:59:59,999 true. But the question is: why didn't they ship them out? What was stopping them 130 99:59:59,999 --> 99:59:59,999 from doing it? Was it a fault of Glamour Dolls or was it a fault of Lisa? We're 131 99:59:59,999 --> 99:59:59,999 still in Lisa's perspective, so let's follow that. Lisa says that even through 132 99:59:59,999 --> 99:59:59,999 all of the things that I just listed - the things that are in Lisa's filing - she 133 99:59:59,999 --> 99:59:59,999 continued to try to work with Glamour Dolls to make things work. She says she 134 99:59:59,999 --> 99:59:59,999 did this only because she felt like, if she didn't continue with Glamour Dolls and 135 99:59:59,999 --> 99:59:59,999 see this through and get the backers what they ordered, that it would damage Lisa 136 99:59:59,999 --> 99:59:59,999 Frank. It would damage her and her brand. It wasn't about making sure that people 137 99:59:59,999 --> 99:59:59,999 got what they paid for, it was about the damage it would cause to her reputation 138 99:59:59,999 --> 99:59:59,999 and her brand's reputation. She says in her statement that, you know, that Glamour 139 99:59:59,999 --> 99:59:59,999 Dolls had made all these promises and they failed to go through on them, that 140 99:59:59,999 --> 99:59:59,999 they even said that they were shipping things to people that they never shipped 141 99:59:59,999 --> 99:59:59,999 to them, which I don't know if it's actually true. Because from what I've 142 99:59:59,999 --> 99:59:59,999 seen, anybody that was supposed to get the eyeshadow and the bronzer and the 143 99:59:59,999 --> 99:59:59,999 postcard did get those things. There is some question, at least in the comments 144 99:59:59,999 --> 99:59:59,999 underneath my last video of whether people who ordered the brush separately, whether 145 99:59:59,999 --> 99:59:59,999 they actually got their brush. So maybe that's what Lisa is talking about. Lisa 146 99:59:59,999 --> 99:59:59,999 says that Glamour Dolls ignored rules that they had to follow to get Lisa's 147 99:59:59,999 --> 99:59:59,999 approval before making anything. She says that they attempted to make or change 148 99:59:59,999 --> 99:59:59,999 products without talking to her first. And also that they didn't give her the 149 99:59:59,999 --> 99:59:59,999 samples required that she needed to review. The perspective here is that 150 99:59:59,999 --> 99:59:59,999 because of those failures, people started blaming Lisa Frank and not Glamour Dolls, 151 99:59:59,999 --> 99:59:59,999 where she's saying it wasn't her fault, it was Glamour Dolls' fault. She said that 152 99:59:59,999 --> 99:59:59,999 people began to think that Lisa Frank was scamming them, leaving negative comments 153 99:59:59,999 --> 99:59:59,999 and complaints online that damaged LFI's reputation. It was only because Glamour 154 99:59:59,999 --> 99:59:59,999 Dolls broke their side of the contract so many times that she ended the contract 155 99:59:59,999 --> 99:59:59,999 formally in July of 2018, which is what Glamour Dolls had said, that she abruptly 156 99:59:59,999 --> 99:59:59,999 just ended the contract. What Glamour Dolls had said was before she ended the 157 99:59:59,999 --> 99:59:59,999 contract, she required them to pay that final $125,000 to her and then once she 158 99:59:59,999 --> 99:59:59,999 got the money, she terminated the contract and that they didn't know she was going to 159 99:59:59,999 --> 99:59:59,999 do that when she took the money. Supposedly, LFI reminded Glamour Dolls 160 99:59:59,999 --> 99:59:59,999 that they needed to do the things that were in the contract, that if she ended 161 99:59:59,999 --> 99:59:59,999 it, that they needed to do - things like returning all the artwork and paying any 162 99:59:59,999 --> 99:59:59,999 royalties owed. However, she says Glamour Dolls didn't pay what they owed or follow 163 99:59:59,999 --> 99:59:59,999 through on other responsibilities after the termination, leading to more problems 164 99:59:59,999 --> 99:59:59,999 and losses for LFI. So at the final part of the complaint, Lisa says "This is what 165 99:59:59,999 --> 99:59:59,999 I want the court to give me." She says she wants to be paid damages, which means all 166 99:59:59,999 --> 99:59:59,999 of the money that they should have received under the agreements with Glamour 167 99:59:59,999 --> 99:59:59,999 Dolls - the exact amount of how much she should be paid would be decided at trial. 168 99:59:59,999 --> 99:59:59,999 Then she wants to be paid back for all of the costs and all of the expenses and the 169 99:59:59,999 --> 99:59:59,999 lawyer's fees as allowed by law. She also wants to receive interest on any money 170 99:59:59,999 --> 99:59:59,999 awarded to them, both before and after the court's decision at 18% per year and it 171 99:59:59,999 --> 99:59:59,999 looks like, you know, this happened in 2018, it's now 2024, so that's a lot of 172 99:59:59,999 --> 99:59:59,999 freakin' interest. I'm not going to do the math in my brain right now because it's 173 99:59:59,999 --> 99:59:59,999 physically and mentally impossible for me but that's a lot of money. And finally, 174 99:59:59,999 --> 99:59:59,999 she's like "And if the court wants to give me something else, if you think 175 99:59:59,999 --> 99:59:59,999 there's something else that's fair, feel free. You can give me that too." So that 176 99:59:59,999 --> 99:59:59,999 is Lisa's filing. I have lots of thoughts my friend. Do you have thoughts? Because 177 99:59:59,999 --> 99:59:59,999 if you have thoughts, put 'em in the comment section because I'm wondering if 178 99:59:59,999 --> 99:59:59,999 we have the exact same thoughts. That's what the collective brain is all about, is 179 99:59:59,999 --> 99:59:59,999 us bouncing ideas off of each other and in a recorded video, it's a little harder. So 180 99:59:59,999 --> 99:59:59,999 if you have thoughts, definitely leave them in the comments. I'm gonna tell you 181 99:59:59,999 --> 99:59:59,999 mine. Okay, so I have questions. [laughs] I have 3 major questions. The first one is 182 99:59:59,999 --> 99:59:59,999 "What was the timeline for approving the Kickstarter?" Because eventually, Lisa was 183 99:59:59,999 --> 99:59:59,999 participating in the Kickstarter, at least it looks like she was participating in the 184 99:59:59,999 --> 99:59:59,999 Kickstarter. So I am curious what Glamour Dolls' side of this is, in that do they 185 99:59:59,999 --> 99:59:59,999 say that they did the Kickstarter without talking to Lisa? Because I noticed 186 99:59:59,999 --> 99:59:59,999 something that was in their paperwork that they filed. They label Kickstarter as a 187 99:59:59,999 --> 99:59:59,999 business that they were trying to get to work with, right? So it's listed in with 188 99:59:59,999 --> 99:59:59,999 Ipsy and Hot Topic; they also list Kickstarter. So it was seen by them - it 189 99:59:59,999 --> 99:59:59,999 looks like - as just another way to sell products and I don't know if that was in 190 99:59:59,999 --> 99:59:59,999 the contract, that they had to clear what retailers they were gonna work with with 191 99:59:59,999 --> 99:59:59,999 Lisa. Where I think that Lisa may have them on this is that they had to use Lisa 192 99:59:59,999 --> 99:59:59,999 Frank artwork and they had to promote this using Lisa Frank branded stuff for the 193 99:59:59,999 --> 99:59:59,999 Kickstarter before it even started. Remember Candy's video. I wish I could 194 99:59:59,999 --> 99:59:59,999 show you the video - it is killing me that this video is private and I can't show 195 99:59:59,999 --> 99:59:59,999 you the full video. But Candy clearly uses Lisa Frank artwork in the video to 196 99:59:59,999 --> 99:59:59,999 promote this Kickstarter. If Lisa didn't know about the Kickstarter, then she 197 99:59:59,999 --> 99:59:59,999 didn't approve the artwork to be used in Candy's video or any other promotional 198 99:59:59,999 --> 99:59:59,999 things that they did for the Kickstarter. So then Lisa would have them on that. 199 99:59:59,999 --> 99:59:59,999 That's what I'm thinking most likely happened - I mean of course it's possible 200 99:59:59,999 --> 99:59:59,999 that Glamour Dolls did talk to Lisa and tell her about the Kickstarter beforehand 201 99:59:59,999 --> 99:59:59,999 and did get all of the artwork approved and all of that, but it sounds like Lisa 202 99:59:59,999 --> 99:59:59,999 is saying "No, that didn't happen." So my next question associated with that - 203 99:59:59,999 --> 99:59:59,999 it's kind of a sub question to question number 1 - is "When did Lisa find out 204 99:59:59,999 --> 99:59:59,999 about the 10 products that they promised to the Kickstarter backers? When did she 205 99:59:59,999 --> 99:59:59,999 agree to that?" Because it seems like that first contract from 2016 was really for 206 99:59:59,999 --> 99:59:59,999 those 4 products that they actually did produce and put out there - the blush 207 99:59:59,999 --> 99:59:59,999 brush, the crease brush, the bronzer, and the eyeshadows. Single eyeshadows, not 208 99:59:59,999 --> 99:59:59,999 eyeshadow palettes, the single eyeshadows. The ones that were sold at Hot Topic. It 209 99:59:59,999 --> 99:59:59,999 is very very likely that Lisa was on board with the Kickstarter about a month after 210 99:59:59,999 --> 99:59:59,999 the Kickstarter started because in March, they show posts that are specifically from 211 99:59:59,999 --> 99:59:59,999 Lisa, participating in encouraging people to enter these contests, to perform these 212 99:59:59,999 --> 99:59:59,999 tasks, to show their nail looks and things like that. Lisa is posting there. So if 213 99:59:59,999 --> 99:59:59,999 this is really Lisa posting - which it doesn't really make any sense to me that 214 99:59:59,999 --> 99:59:59,999 it wouldn't be Lisa because Glamour Dolls wouldn't be able to, like, hide that from 215 99:59:59,999 --> 99:59:59,999 Lisa - they would have to explain that so it doesn't really make sense to me 216 99:59:59,999 --> 99:59:59,999 that that wasn't actually Lisa posting. But she was clearly participating and 217 99:59:59,999 --> 99:59:59,999 on board in March. Another clue that Lisa was involved in the Kickstarter from the 218 99:59:59,999 --> 99:59:59,999 launch of the Kickstarter was that just a few days after the launch, Glamour 219 99:59:59,999 --> 99:59:59,999 Dolls posted that Lisa was going to go into her vault and the first 1,000 backers 220 99:59:59,999 --> 99:59:59,999 were going to get a very special gift from Lisa in their box when they got their 221 99:59:59,999 --> 99:59:59,999 stuff. They would get a second - what they called a treat - if they hit 2,000 backers 222 99:59:59,999 --> 99:59:59,999 and that Lisa had something really special planned if they made it to 10,000 backers. 223 99:59:59,999 --> 99:59:59,999 So I'm very curious to see if this piece comes out in court. My second question is 224 99:59:59,999 --> 99:59:59,999 "Why the hell did Glamour Dolls sign this terrible ass contract?" This is the most 225 99:59:59,999 --> 99:59:59,999 bull**** contract I think I have ever read. It is absolutely nuts. The part that 226 99:59:59,999 --> 99:59:59,999 is the most unbelievable for me is that Glamour Dolls signed this is the whole 227 99:59:59,999 --> 99:59:59,999 approval process. It is absolutely ridiculous. Both sides agree that this was 228 99:59:59,999 --> 99:59:59,999 the process. So they have an idea, right? They start with the idea. Let's use the 229 99:59:59,999 --> 99:59:59,999 Trapper Keeper palettes as an example. So they have an idea that they want to 230 99:59:59,999 --> 99:59:59,999 create a palette that looks like a Trapper Keeper. So they get this plain white 231 99:59:59,999 --> 99:59:59,999 Trapper Keeper palette made by the factory. Glamour Dolls then takes this 232 99:59:59,999 --> 99:59:59,999 white packaging, this plain plastic packaging that's the mock-up, send it to 233 99:59:59,999 --> 99:59:59,999 Lisa, wait 10 business days. If she doesn't answer, they have to poke her and 234 99:59:59,999 --> 99:59:59,999 get her to give feedback. If she does approve of it, Glamour Dolls then takes 235 99:59:59,999 --> 99:59:59,999 her ideas, whatever she wants changed, and lets the manufacturing facility know. Then 236 99:59:59,999 --> 99:59:59,999 they get another mock-up. Then they send that to Lisa. They wait 10 days, they wait 237 99:59:59,999 --> 99:59:59,999 for the feedback. All of that happens all over again until Lisa's happy. I didn't 238 99:59:59,999 --> 99:59:59,999 see anything on either said that said Lisa had a limit to how many changes she could 239 99:59:59,999 --> 99:59:59,999 make. So let's assume she's now approved the mold. Now they have to wait for Lisa 240 99:59:59,999 --> 99:59:59,999 to make the artwork. Once the artwork comes in, again, they send it over to the 241 99:59:59,999 --> 99:59:59,999 manufacturer. The manufacturer puts it on the product. Then Glamour Dolls has to 242 99:59:59,999 --> 99:59:59,999 have two samples of it that they then send over to Lisa and wait those 10 business 243 99:59:59,999 --> 99:59:59,999 days again. If she doesn't respond, then they poke her - same process all over 244 99:59:59,999 --> 99:59:59,999 again, where she can either reject it or accept it. Do you see how this is so 245 99:59:59,999 --> 99:59:59,999 freaking ridiculous? Because it's not even over then! Even after Lisa has approved 246 99:59:59,999 --> 99:59:59,999 the final designed product, when they manufacture it - let's say they make 247 99:59:59,999 --> 99:59:59,999 10,000 of them, because this did happen - they make 10,000 of them, they have to 248 99:59:59,999 --> 99:59:59,999 send 2 of the 10,000 to Lisa for final approval before they can ship those out 249 99:59:59,999 --> 99:59:59,999 to customers. And I will tell you my friend, this actually happened - 250 99:59:59,999 --> 99:59:59,999 according to Glamour Dolls - with the vegan leather makeup bag. This is the 251 99:59:59,999 --> 99:59:59,999 draft picture of the vegan leather makeup bag that was not designed, that people 252 99:59:59,999 --> 99:59:59,999 really excited about. This is the final design that was supposedly "The One," the 253 99:59:59,999 --> 99:59:59,999 makeup bag. Well it turns out, according to Glamour Dolls, Lisa didn't like this 254 99:59:59,999 --> 99:59:59,999 and after they had printed 10,000 of these, Lisa said she didn't want it to be 255 99:59:59,999 --> 99:59:59,999 vegan leather anymore; she wanted it to be glitter plastic. And because of the 256 99:59:59,999 --> 99:59:59,999 sh**** ass contract that they signed, they couldn't sell those 10,000 bags that 257 99:59:59,999 --> 99:59:59,999 they had already made because she had approved the sample. They had to start all 258 99:59:59,999 --> 99:59:59,999 over again with a glitter bag design. I mean how f***ing ridiculous is this? The 259 99:59:59,999 --> 99:59:59,999 fact that Glamour Dolls signed this contract, did they not have a lawyer 260 99:59:59,999 --> 99:59:59,999 read it? Like what happened? How did this get through? From the very jump, this 261 99:59:59,999 --> 99:59:59,999 should have just never happened and I'm sure Glamour Dolls in hindsight is 262 99:59:59,999 --> 99:59:59,999 thinking the exact same thing. And my third question is "Why would they start a 263 99:59:59,999 --> 99:59:59,999 Kickstarter in February, knowing that Lisa's contract was ending in December?" 264 99:59:59,999 --> 99:59:59,999 Because that's where they really got screwed. This is what I'm thinking: I'm 265 99:59:59,999 --> 99:59:59,999 thinking Lisa designed all of the products and got everything going for those first 266 99:59:59,999 --> 99:59:59,999 four products before the Kickstarter even started. And that was why Glamour 267 99:59:59,999 --> 99:59:59,999 Dolls wanted to do more work with her. They were like "Yes, this was so smooth, 268 99:59:59,999 --> 99:59:59,999 this was so easy. Let's keep this going a little longer. We have until December, 269 99:59:59,999 --> 99:59:59,999 it's only February. We have all this time. We pushed out those four products pretty 270 99:59:59,999 --> 99:59:59,999 quickly as far as getting through this process, so let's do 10 more! We've got 271 99:59:59,999 --> 99:59:59,999 this." Glamour Dolls said publicly that they didn't start having problems with 272 99:59:59,999 --> 99:59:59,999 Lisa slowing down the process until June of 2017. So that was after the Kickstarter 273 99:59:59,999 --> 99:59:59,999 had already started, but before the estimated ship date that they told the 274 99:59:59,999 --> 99:59:59,999 backers of September. And it makes sense because if they started signing the 275 99:59:59,999 --> 99:59:59,999 contract in June of 2016, by February, they had made and designed 4 products. 276 99:59:59,999 --> 99:59:59,999 Assuming that Lisa was done with all of the designs and all of the things and all 277 99:59:59,999 --> 99:59:59,999 of the approvals by the time that the Kickstarter started so that's about 8 278 99:59:59,999 --> 99:59:59,999 months. So they're thinking "Well yeah this was so easy, we should be able to 279 99:59:59,999 --> 99:59:59,999 push out more products by December, by the time Lisa's contract ends." So now I 280 99:59:59,999 --> 99:59:59,999 shall present to you the worst case scenario of Lisa's a raging b****. 281 99:59:59,999 --> 99:59:59,999 [laughter] That's where we're gonna go with this. This is worst case scenario 282 99:59:59,999 --> 99:59:59,999 what happened, in that Lisa knew her contract was ending in December, she knew 283 99:59:59,999 --> 99:59:59,999 that she could slow down this process in order to get a new contract in December 284 99:59:59,999 --> 99:59:59,999 and price gauge the hell out of Glamour Dolls. She knew that they had already 285 99:59:59,999 --> 99:59:59,999 promised all of these products to the backers. She knew that they probably 286 99:59:59,999 --> 99:59:59,999 given her $125,000 of the backers' money. She knew that Glamour Dolls was already 287 99:59:59,999 --> 99:59:59,999 using the backer money in order to get these samples and ship them to her. The 288 99:59:59,999 --> 99:59:59,999 $370,000 that the backers had paid, probably a lot of it was already spent 289 99:59:59,999 --> 99:59:59,999 because that's why they started wanting - needing more money. They started selling 290 99:59:59,999 --> 99:59:59,999 the products on BackerKit, they started selling the crease brush on their website, 291 99:59:59,999 --> 99:59:59,999 they really started courting Hot Topic to try to sell products over there because 292 99:59:59,999 --> 99:59:59,999 Lisa was taking all of the Kickstarter backers' money for herself and they were 293 99:59:59,999 --> 99:59:59,999 using it for the manufacturing of these products and they knew it wasn't enough to 294 99:59:59,999 --> 99:59:59,999 see this whole project through because remember they've got 10 products they're 295 99:59:59,999 --> 99:59:59,999 trying to make by December. So time passes, Lisa drags this out, drags this 296 99:59:59,999 --> 99:59:59,999 out, and then drops the bomb on Glamour Dolls: "If you want this to continue, 297 99:59:59,999 --> 99:59:59,999 after all this money that you spent, you're gonna have to pay me $500,000, not 298 99:59:59,999 --> 99:59:59,999 $100,000 anymore. It's $500,000 and you know when you sell to Hot Topic? You're 299 99:59:59,999 --> 99:59:59,999 not gonna give me 15%, you're gonna give me 20%." But at that point, they were so 300 99:59:59,999 --> 99:59:59,999 far deep in it that they couldn't get out of it. They absolutely couldn't get out 301 99:59:59,999 --> 99:59:59,999 of it. Another place that they probably spent the backers' money was on Wengie 302 99:59:59,999 --> 99:59:59,999 because remember the call that Peter did with the backers? He mentions very 303 99:59:59,999 --> 99:59:59,999 briefly paying for a video. I'll play that for you. 304 99:59:59,999 --> 99:59:59,999 (Peter): We actually didn't make a profit off of this Kickstarter campaign. I know 305 99:59:59,999 --> 99:59:59,999 that's, um, it's a hard thing for people to, um, to kind of believe with the size 306 99:59:59,999 --> 99:59:59,999 of it. But, um, we have to manufacture all those goods, uh, we have licensing fees 307 99:59:59,999 --> 99:59:59,999 to pay to Lisa, um, we had to pay for, you know, uh, for production of the video and 308 99:59:59,999 --> 99:59:59,999 for all these different things. 309 99:59:59,999 --> 99:59:59,999 (Jen) I don't know this for a fact but I think he took the money from the backers 310 99:59:59,999 --> 99:59:59,999 and paid Wengie to make that video. Who knows how much he paid her because 311 99:59:59,999 --> 99:59:59,999 influencer rates back then, you know, it was brand new, you know, influencers 312 99:59:59,999 --> 99:59:59,999 getting paid for sponsored videos and things like that. I have no idea how much 313 99:59:59,999 --> 99:59:59,999 they paid Wengie but I would imagine that was part of where the money was going and 314 99:59:59,999 --> 99:59:59,999 why they needed to raise more money. Because now in December, they not only 315 99:59:59,999 --> 99:59:59,999 have to get all of these 10 products manufactured but they also have to pay 316 99:59:59,999 --> 99:59:59,999 Lisa this $500,000. Lisa officially had Glamour Dolls by the unicorn balls. I mean 317 99:59:59,999 --> 99:59:59,999 like, she was-she had them. They had no choice, in my opinion, if this is the way 318 99:59:59,999 --> 99:59:59,999 it played out, other than to sign that contract and just hope for the best. If 319 99:59:59,999 --> 99:59:59,999 all of this is true - let's say they say "Screw you Lisa, we're not paying you 320 99:59:59,999 --> 99:59:59,999 $500,000, we're cutting off the contract now." How do they pay back the backers? 321 99:59:59,999 --> 99:59:59,999 They can't. They don't have the money anymore. It's gone. They don't have the 322 99:59:59,999 --> 99:59:59,999 money to pay back the backers so they are absolutely screwed. Some other things 323 99:59:59,999 --> 99:59:59,999 that I found in the Glamour Dolls part of the lawsuit that I didn't see when I made 324 99:59:59,999 --> 99:59:59,999 the last video that I want to let you know because now, I imagine at some point, 325 99:59:59,999 --> 99:59:59,999 there'll be a part 3 [laughter] of this video is that they were saying more 326 99:59:59,999 --> 99:59:59,999 things about how Lisa interfered with the production of the product. So in the court 327 99:59:59,999 --> 99:59:59,999 filing, it says "Lisa Frank frequently and unreasonably rejected already manufactured 328 99:59:59,999 --> 99:59:59,999 samples without being specific as to the reason for disapproval." In their filing, 329 99:59:59,999 --> 99:59:59,999 they said that there was a problem with the Ipsy products. They said "in one 330 99:59:59,999 --> 99:59:59,999 instance, due to Lisa Frank's failure to timely provide artwork for the Ipsy sales 331 99:59:59,999 --> 99:59:59,999 order, Glamour Dolls missed the artwork deadline and was forced to pay a fine in 332 99:59:59,999 --> 99:59:59,999 the amount of $50,500." The filing continued on and said that Glamour Dolls 333 99:59:59,999 --> 99:59:59,999 was shipping her out samples and then she'd be like - 10 business days later - 334 99:59:59,999 --> 99:59:59,999 "Oh I lost them, can you send more of them?" It's like, "wait what? What?" And 335 99:59:59,999 --> 99:59:59,999 in this case, they may not have more samples because they requested a certain 336 99:59:59,999 --> 99:59:59,999 number of samples from the lab and then they mail the samples to Lisa Frank and 337 99:59:59,999 --> 99:59:59,999 then Lisa loses them so then they have to ask the lab for more samples and they have 338 99:59:59,999 --> 99:59:59,999 to pay for that and then get those samples and then send those - wait for 339 99:59:59,999 --> 99:59:59,999 those to come in - then send those to Lisa and then they have to wait for Lisa to 340 99:59:59,999 --> 99:59:59,999 approve those. Do you see how it's just dragging everything out? And you remember 341 99:59:59,999 --> 99:59:59,999 how I said as part of the contract - this was so, so if this is how it happened - 342 99:59:59,999 --> 99:59:59,999 that part of the contract was that Lisa would get her artwork back and that's 343 99:59:59,999 --> 99:59:59,999 what she did. She used that artwork on the Morphe products. The artwork she made for 344 99:59:59,999 --> 99:59:59,999 Glamour Dolls. You can see it on the Trapper Keeper-style palette that Morphe 345 99:59:59,999 --> 99:59:59,999 had made. But to be true to the title of this video, Lisa says that "Glamour Dolls 346 99:59:59,999 --> 99:59:59,999 failed to comply with the inspection and approval process. Lisa's gonna have to 347 99:59:59,999 --> 99:59:59,999 prove this in court. She's gonna have to show them the evidence that Glamour Dolls 348 99:59:59,999 --> 99:59:59,999 didn't go through the proper approval process because even if it's unfair - 349 99:59:59,999 --> 99:59:59,999 this is the thing about the law - even if it's unfair, even if it's unreasonable, if 350 99:59:59,999 --> 99:59:59,999 Glamour Dolls signed that contract and said that they were gonna follow a certain 351 99:59:59,999 --> 99:59:59,999 process, they had to follow that process, even if it's bull****. And if Lisa can 352 99:59:59,999 --> 99:59:59,999 prove that they did things that were against the process, then she had a right 353 99:59:59,999 --> 99:59:59,999 to terminate the contract and get her artwork and then sell it to Morphe. It's 354 99:59:59,999 --> 99:59:59,999 just so fu***d up! [laughter] It's just so messed up! But we definitely need to 355 99:59:59,999 --> 99:59:59,999 end this video the same way we ended the last one in that the most current ruling 356 99:59:59,999 --> 99:59:59,999 by the judge for the 9 claims that Glamour Dolls has against Lisa Frank - the judge 357 99:59:59,999 --> 99:59:59,999 only dismissed part of claim 1. That was the breach of contract; they partially 358 99:59:59,999 --> 99:59:59,999 dismissed that but the judge says that Glamour Dolls can go forward on part of 359 99:59:59,999 --> 99:59:59,999 the breach of contract and everything else - including unjust enrichment, fraud, 360 99:59:59,999 --> 99:59:59,999 defamation, and all of those things - that they're moving forward with those 361 99:59:59,999 --> 99:59:59,999 claims, which means that the judge thinks that Glamour Dolls has enough evidence to 362 99:59:59,999 --> 99:59:59,999 support that these things happened. Not that Lisa isn't going to counter with 363 99:59:59,999 --> 99:59:59,999 something else but Glamour Dolls does have a case to present. And also like I 364 99:59:59,999 --> 99:59:59,999 mentioned in the last video, the last court filing for this was January 24th, 365 99:59:59,999 --> 99:59:59,999 2024, so this is going to be ongoing, so I imagine at some point, there will be a 366 99:59:59,999 --> 99:59:59,999 part 3. I don't imagine it will be soon but I said that last time, so [laughter] 367 99:59:59,999 --> 99:59:59,999 who knows? At this point my friend, it is your turn in the collective brain of 368 99:59:59,999 --> 99:59:59,999 makeup awesomeness. I would love to know your thoughts on this new information that 369 99:59:59,999 --> 99:59:59,999 was sent to me and thank you again so much to the person who calls themself "Fake 370 99:59:59,999 --> 99:59:59,999 Gothic Girl," thank you for sending me the link to this court document that I 371 99:59:59,999 --> 99:59:59,999 previously didn't have access to. It really opened my eyes to a lot of things 372 99:59:59,999 --> 99:59:59,999 and hopefully it added some context to you - if you watch the first piece - to what 373 99:59:59,999 --> 99:59:59,999 Lisa was saying about what was happening and what her counter suit is all about. 374 99:59:59,999 --> 99:59:59,999 Let me know any and all thoughts down in the comment section down below. Thank you 375 99:59:59,999 --> 99:59:59,999 so so much for watching, I hope you enjoy. If you would like to hang out just a 376 99:59:59,999 --> 99:59:59,999 little bit longer, YouTube should be recommending a couple of videos over here 377 99:59:59,999 --> 99:59:59,999 to watch. I'm gonna put a previous episode of "Behind the Controversy" down there. 378 99:59:59,999 --> 99:59:59,999 In case you didn't see it, that's a really good one. If you would like to 379 99:59:59,999 --> 99:59:59,999 watch the top one, that one YouTube's picking for you based on your viewing 380 99:59:59,999 --> 99:59:59,999 history, which video they think that you're gonna like. But if you gotta go 381 99:59:59,999 --> 99:59:59,999 cuz you have things that you gotta do, I get it. Thank you for hanging out as 382 99:59:59,999 --> 99:59:59,999 long as you did and mad love to you and I will see you in a video very very soon. 383 99:59:59,999 --> 99:59:59,999 Bye!