WEBVTT 00:00:00.000 --> 00:00:05.389 Glamour Dolls failed to comply with those obligations when it engaged in a 00:00:05.389 --> 00:00:10.319 failed online advertising campaign on Kickstarter, using LFI, Lisa Frank's brand 99:59:59.999 --> 99:59:59.999 without LFI's approval and then refused to pay royalties due when LFI properly 99:59:59.999 --> 99:59:59.999 terminated the party's contracts as a result of Glamour Dolls' misconduct. 99:59:59.999 --> 99:59:59.999 Wait a minute. She didn't know about the Kickstarter? Hello my friend, I will 99:59:59.999 --> 99:59:59.999 honestly tell you that until late last night, I did not think that I was filming 99:59:59.999 --> 99:59:59.999 a video about Lisa Frank and Glamour Dolls today. I actually had a full video 99:59:59.999 --> 99:59:59.999 planned about preservative-free cosmetics and how freaking ridiculous and dangerous 99:59:59.999 --> 99:59:59.999 preservative-free cosmetics are. But then I got a very interesting comment from a 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 99:59:59.999 --> 99:59:59.999 that I had not previously had access to. This document is Lisa Frank's point of 99:59:59.999 --> 99:59:59.999 view. It is her counter suit. This is Lisa Frank saying "Glamour Dolls is the bad 99:59:59.999 --> 99:59:59.999 guy, not me. I didn't do anything wrong - they're the ones that did something 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 99:59:59.999 --> 99:59:59.999 in the court documents is the reason why she pulled out of her contract with 99:59:59.999 --> 99:59:59.999 Glamour Dolls that left backers of the Kickstarter out all of their money - over 99:59:59.999 --> 99:59:59.999 $400,000 of their money, including my money. My $75? Gone. If you have no idea 99:59:59.999 --> 99:59:59.999 what I'm talking about, that's because this is Part 2. I strongly strongly 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 99:59:59.999 --> 99:59:59.999 a card. It is the background for this video - this video might not make sense 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 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 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. 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 99:59:59.999 --> 99:59:59.999 single view is about 40 minutes. That has literally never happened on my channel. 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 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 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 99:59:59.999 --> 99:59:59.999 that background knowledge. And also side note, I mentioned this at the end of, 99:59:59.999 --> 99:59:59.999 the video, but there's probably about 40 comments mentioning Bailey Sarian's video 99:59:59.999 --> 99:59:59.999 on Lisa Frank, based on the Jezebel article that we talked about in the first 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 99:59:59.999 --> 99:59:59.999 collaborated with Bailey. Bailey did a fantastic job on that video. That video is 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, 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 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 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 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 99:59:59.999 --> 99:59:59.999 lawyer language in this that was difficult to understand. So if you would like to 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 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 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 99:59:59.999 --> 99:59:59.999 end on December 31st of 2017 - that matches up with Glamour Dolls' side, so 99:59:59.999 --> 99:59:59.999 I'm assuming there's legal contracts, so there's evidence of this. So Glamour Dolls 99:59:59.999 --> 99:59:59.999 in that original contract, agreed to pay Lisa Frank 15% royalty on the net sales 99:59:59.999 --> 99:59:59.999 of the products made under the deal, with a minimum payment of $100,000 for the 99:59:59.999 --> 99:59:59.999 duration of the agreement, including a $25,000 advance. Glamour Dolls promised to 99:59:59.999 --> 99:59:59.999 do their best, to make, sell, promote, and market the products to get as many sales 99:59:59.999 --> 99:59:59.999 as possible, always focusing on high quality. Now this part is very very 99:59:59.999 --> 99:59:59.999 important because this is really the root of why everything went wrong. They had to 99:59:59.999 --> 99:59:59.999 get Lisa Frank's approval on literally everything, from the design concepts to 99:59:59.999 --> 99:59:59.999 the artwork, to the molds for production, to the final product samples before going 99:59:59.999 --> 99:59:59.999 into production. Lisa Frank had the right to approve or reject the elements and 99:59:59.999 --> 99:59:59.999 Glamour Dolls had to follow Lisa Frank's directions on quality standards. Now 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, 99:59:59.999 --> 99:59:59.999 for designs, Glamour Dolls had to wait up to 10 business days - that's about two 99:59:59.999 --> 99:59:59.999 weeks or so - for Lisa Frank to approve or reject anything that they submitted to 99:59:59.999 --> 99:59:59.999 her. If Lisa didn't respond in time, Glamour Dolls was allowed to ask after 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 99:59:59.999 --> 99:59:59.999 reject this or I need an approval." But this is the kicker! Because even after 99:59:59.999 --> 99:59:59.999 approval, and remember, this is according to Lisa herself, Lisa could stop the 99:59:59.999 --> 99:59:59.999 production and distribution of the products if they didn't meet her quality 99:59:59.999 --> 99:59:59.999 standards. That's a subjective thing - that is not something that can be 99:59:59.999 --> 99:59:59.999 measured. Lisa can just for any reason, just say "This doesn't meet my quality 99:59:59.999 --> 99:59:59.999 standards" and stop production at any point. And it wasn't just for production 99:59:59.999 --> 99:59:59.999 of product. It also had to do with advertising, packaging, display methods, 99:59:59.999 --> 99:59:59.999 press releases - anything using Lisa Frank artwork - Glamour Dolls had to run this by 99:59:59.999 --> 99:59:59.999 Lisa. They had to wait for those 10 business days and then if she didn't 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, 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 99:59:59.999 --> 99:59:59.999 business days. So remember this original contract that I personally believe was to 99:59:59.999 --> 99:59:59.999 create the blush, the highlighter, and the two brushes - that contract was ending 99:59:59.999 --> 99:59:59.999 in December. But remember the Kickstarter had started in February. We're now in 99:59:59.999 --> 99:59:59.999 December. February - they promised backers 10 additional products beyond these four 99:59:59.999 --> 99:59:59.999 that had already been funded. Lisa's contract is about to end, so they need to 99:59:59.999 --> 99:59:59.999 start a new contract. This is what Lisa says was in the new contract: same 15% 99:59:59.999 --> 99:59:59.999 royalty on the net sales of the products plus 20% royalty on sales made directly to 99:59:59.999 --> 99:59:59.999 retail customers. So this would be if people bought it off of Ipsy's marketplace 99:59:59.999 --> 99:59:59.999 or if people bought it from Hot Topic, or at one point they were talking to 99:59:59.999 --> 99:59:59.999 Walmart - any of those, Lisa would get a 20% royalty off of. Beyond that, in the 99:59:59.999 --> 99:59:59.999 first contract, Lisa asked for at least $100,000 for her fees. In the new 99:59:59.999 --> 99:59:59.999 contract, Lisa upped that to $500,000. That included an up front payment of 99:59:59.999 --> 99:59:59.999 $125,000 that needed to be paid when the contract was signed. Three more payments 99:59:59.999 --> 99:59:59.999 would be paid throughout the year to total that $500,000. The rules for making the 99:59:59.999 --> 99:59:59.999 products were pretty much the same as the first contract. All of the levels of "you 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 99:59:59.999 --> 99:59:59.999 - all of that was pretty much the same. The only thing that changed, which we'll 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 99:59:59.999 --> 99:59:59.999 approval. So Lisa has already approved the final draft of the product, they have 99:59:59.999 --> 99:59:59.999 put that into production, they now have the products - they've got thousands and 99:59:59.999 --> 99:59:59.999 thousands of these products - they don't have to send those products to Lisa for 99:59:59.999 --> 99:59:59.999 approval anymore. But there is a clause - because of course there is - if there were 99:59:59.999 --> 99:59:59.999 any production problems, if after all of these things were sent out and Lisa 99:59:59.999 --> 99:59:59.999 decided that there was a production problem, there was something she didn't 99:59:59.999 --> 99:59:59.999 like, Glamour Dolls would have to pay damages for that. What would those 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 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 99:59:59.999 --> 99:59:59.999 immediately if Glamour Dolls broke certain rules, like not following the approval 99:59:59.999 --> 99:59:59.999 process or having production issues 3 times. If Lisa decided that she was 99:59:59.999 --> 99:59:59.999 going to terminate the agreement, Glamour Dolls had to not only stop making 99:59:59.999 --> 99:59:59.999 products, they had to stop selling their existing products. Then they had to turn 99:59:59.999 --> 99:59:59.999 over the rights to the artwork. Anything that Lisa had created for Glamour Dolls 99:59:59.999 --> 99:59:59.999 would now be owned by Lisa. And you might be seeing where this might be going - 99:59:59.999 --> 99:59:59.999 maybe if you watched part 1. Because she did that. That happened. In context. you 99:59:59.999 --> 99:59:59.999 have to remember that this is 3 months past the date that Glamour Dolls had 99:59:59.999 --> 99:59:59.999 promised products would be done and shipped to backers. So they are deep deep 99:59:59.999 --> 99:59:59.999 in it now. They are sending out that digital Christmas card, where people can 99:59:59.999 --> 99:59:59.999 send it to their families, saying "Hey, you know, you might be getting some Lisa 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 99:59:59.999 --> 99:59:59.999 where we're at. A lot of the backers are already irritated by this point. From 99:59:59.999 --> 99:59:59.999 Lisa's side, she says in her court documents that LFI, or Lisa Frank 99:59:59.999 --> 99:59:59.999 Incorporated, fully performed its obligations under the license agreements - 99:59:59.999 --> 99:59:59.999 I do believe Glamour Dolls would argue against that. They say specifically 99:59:59.999 --> 99:59:59.999 Glamour Dolls repeatedly failed to meet their responsibilities under the 99:59:59.999 --> 99:59:59.999 agreements they had with Lisa Frank. This is how Lisa says Glamour Dolls messed up. 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 99:59:59.999 --> 99:59:59.999 she says - she says they didn't put in enough effort to produce, distribute, 99:59:59.999 --> 99:59:59.999 promote, and sell the products that they were supposed to. She says that they 99:59:59.999 --> 99:59:59.999 didn't aim to sell as many high quality products as they could, that they had 99:59:59.999 --> 99:59:59.999 signed off in their contract. She says that they use Lisa Frank artwork in ads 99:59:59.999 --> 99:59:59.999 and packaging without getting approval first, which was against their rules of 99:59:59.999 --> 99:59:59.999 the contract. She says Glamour Dolls was late in making and delivering the 99:59:59.999 --> 99:59:59.999 products, which they were. She says that Glamour Dolls didn't follow the agreed 99:59:59.999 --> 99:59:59.999 upon process for getting products inspected and approved, that they didn't 99:59:59.999 --> 99:59:59.999 pay the royalties and the minimum amounts that they were supposed to, and that they 99:59:59.999 --> 99:59:59.999 used the Kickstarter to sell products without getting the okay from Lisa Frank 99:59:59.999 --> 99:59:59.999 Incorporated, which was of course not allowed. Finally, they say that Glamour 99:59:59.999 --> 99:59:59.999 Dolls promised products to backers and then never shipped them out, which is 99:59:59.999 --> 99:59:59.999 true. But the question is: why didn't they ship them out? What was stopping them 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 99:59:59.999 --> 99:59:59.999 still in Lisa's perspective, so let's follow that. Lisa says that even through 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 99:59:59.999 --> 99:59:59.999 continued to try to work with Glamour Dolls to make things work. She says she 99:59:59.999 --> 99:59:59.999 did this only because she felt like, if she didn't continue with Glamour Dolls and 99:59:59.999 --> 99:59:59.999 see this through and get the backers what they ordered, that it would damage Lisa 99:59:59.999 --> 99:59:59.999 Frank. It would damage her and her brand. It wasn't about making sure that people 99:59:59.999 --> 99:59:59.999 got what they paid for, it was about the damage it would cause to her reputation 99:59:59.999 --> 99:59:59.999 and her brand's reputation. She says in her statement that, you know, that Glamour 99:59:59.999 --> 99:59:59.999 Dolls had made all these promises and they failed to go through on them, that 99:59:59.999 --> 99:59:59.999 they even said that they were shipping things to people that they never shipped 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 99:59:59.999 --> 99:59:59.999 seen, anybody that was supposed to get the eyeshadow and the bronzer and the 99:59:59.999 --> 99:59:59.999 postcard did get those things. There is some question, at least in the comments 99:59:59.999 --> 99:59:59.999 underneath my last video of whether people who ordered the brush separately, whether 99:59:59.999 --> 99:59:59.999 they actually got their brush. So maybe that's what Lisa is talking about. Lisa 99:59:59.999 --> 99:59:59.999 says that Glamour Dolls ignored rules that they had to follow to get Lisa's 99:59:59.999 --> 99:59:59.999 approval before making anything. She says that they attempted to make or change 99:59:59.999 --> 99:59:59.999 products without talking to her first. And also that they didn't give her the 99:59:59.999 --> 99:59:59.999 samples required that she needed to review. The perspective here is that 99:59:59.999 --> 99:59:59.999 because of those failures, people started blaming Lisa Frank and not Glamour Dolls, 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 99:59:59.999 --> 99:59:59.999 people began to think that Lisa Frank was scamming them, leaving negative comments 99:59:59.999 --> 99:59:59.999 and complaints online that damaged LFI's reputation. It was only because Glamour 99:59:59.999 --> 99:59:59.999 Dolls broke their side of the contract so many times that she ended the contract 99:59:59.999 --> 99:59:59.999 formally in July of 2018, which is what Glamour Dolls had said, that she abruptly 99:59:59.999 --> 99:59:59.999 just ended the contract. What Glamour Dolls had said was before she ended the 99:59:59.999 --> 99:59:59.999 contract, she required them to pay that final $125,000 to her and then once she 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 99:59:59.999 --> 99:59:59.999 do that when she took the money. Supposedly, LFI reminded Glamour Dolls 99:59:59.999 --> 99:59:59.999 that they needed to do the things that were in the contract, that if she ended 99:59:59.999 --> 99:59:59.999 it, that they needed to do - things like returning all the artwork and paying any 99:59:59.999 --> 99:59:59.999 royalties owed. However, she says Glamour Dolls didn't pay what they owed or follow 99:59:59.999 --> 99:59:59.999 through on other responsibilities after the termination, leading to more problems 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 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 99:59:59.999 --> 99:59:59.999 of the money that they should have received under the agreements with Glamour 99:59:59.999 --> 99:59:59.999 Dolls - the exact amount of how much she should be paid would be decided at trial. 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 99:59:59.999 --> 99:59:59.999 lawyer's fees as allowed by law. She also wants to receive interest on any money 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 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 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 99:59:59.999 --> 99:59:59.999 physically and mentally impossible for me but that's a lot of money. And finally, 99:59:59.999 --> 99:59:59.999 she's like "And if the court wants to give me something else, if you think 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 99:59:59.999 --> 99:59:59.999 is Lisa's filing. I have lots of thoughts my friend. Do you have thoughts? Because 99:59:59.999 --> 99:59:59.999 if you have thoughts, put 'em in the comment section because I'm wondering if 99:59:59.999 --> 99:59:59.999 we have the exact same thoughts. That's what the collective brain is all about, is 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 99:59:59.999 --> 99:59:59.999 if you have thoughts, definitely leave them in the comments. I'm gonna tell you 99:59:59.999 --> 99:59:59.999 mine. Okay, so I have questions. [laughs] I have 3 major questions. The first one is 99:59:59.999 --> 99:59:59.999 "What was the timeline for approving the Kickstarter?" Because eventually, Lisa was 99:59:59.999 --> 99:59:59.999 participating in the Kickstarter, at least it looks like she was participating in the 99:59:59.999 --> 99:59:59.999 Kickstarter. So I am curious what Glamour Dolls' side of this is, in that do they 99:59:59.999 --> 99:59:59.999 say that they did the Kickstarter without talking to Lisa? Because I noticed 99:59:59.999 --> 99:59:59.999 something that was in their paperwork that they filed. They label Kickstarter as a 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 99:59:59.999 --> 99:59:59.999 Ipsy and Hot Topic; they also list Kickstarter. So it was seen by them - it 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 99:59:59.999 --> 99:59:59.999 the contract, that they had to clear what retailers they were gonna work with with 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 99:59:59.999 --> 99:59:59.999 Frank artwork and they had to promote this using Lisa Frank branded stuff for the 99:59:59.999 --> 99:59:59.999 Kickstarter before it even started. Remember Candy's video. I wish I could 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 99:59:59.999 --> 99:59:59.999 you the full video. But Candy clearly uses Lisa Frank artwork in the video to 99:59:59.999 --> 99:59:59.999 promote this Kickstarter. If Lisa didn't know about the Kickstarter, then she 99:59:59.999 --> 99:59:59.999 didn't approve the artwork to be used in Candy's video or any other promotional 99:59:59.999 --> 99:59:59.999 things that they did for the Kickstarter. So then Lisa would have them on that. 99:59:59.999 --> 99:59:59.999 That's what I'm thinking most likely happened - I mean of course it's possible 99:59:59.999 --> 99:59:59.999 that Glamour Dolls did talk to Lisa and tell her about the Kickstarter beforehand 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 99:59:59.999 --> 99:59:59.999 is saying "No, that didn't happen." So my next question associated with that - 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 99:59:59.999 --> 99:59:59.999 about the 10 products that they promised to the Kickstarter backers? When did she 99:59:59.999 --> 99:59:59.999 agree to that?" Because it seems like that first contract from 2016 was really for 99:59:59.999 --> 99:59:59.999 those 4 products that they actually did produce and put out there - the blush 99:59:59.999 --> 99:59:59.999 brush, the crease brush, the bronzer, and the eyeshadows. Single eyeshadows, not 99:59:59.999 --> 99:59:59.999 eyeshadow palettes, the single eyeshadows. The ones that were sold at Hot Topic. It 99:59:59.999 --> 99:59:59.999 is very very likely that Lisa was on board with the Kickstarter about a month after 99:59:59.999 --> 99:59:59.999 the Kickstarter started because in March, they show posts that are specifically from 99:59:59.999 --> 99:59:59.999 Lisa, participating in encouraging people to enter these contests, to perform these 99:59:59.999 --> 99:59:59.999 tasks, to show their nail looks and things like that. Lisa is posting there. So if 99:59:59.999 --> 99:59:59.999 this is really Lisa posting - which it doesn't really make any sense to me that 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 99:59:59.999 --> 99:59:59.999 Lisa - they would have to explain that so it doesn't really make sense to me 99:59:59.999 --> 99:59:59.999 that that wasn't actually Lisa posting. But she was clearly participating and 99:59:59.999 --> 99:59:59.999 on board in March. Another clue that Lisa was involved in the Kickstarter from the 99:59:59.999 --> 99:59:59.999 launch of the Kickstarter was that just a few days after the launch, Glamour 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 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 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 99:59:59.999 --> 99:59:59.999 and that Lisa had something really special planned if they made it to 10,000 backers. 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 99:59:59.999 --> 99:59:59.999 "Why the hell did Glamour Dolls sign this terrible ass contract?" This is the most 99:59:59.999 --> 99:59:59.999 bull**** contract I think I have ever read. It is absolutely nuts. The part that 99:59:59.999 --> 99:59:59.999 is the most unbelievable for me is that Glamour Dolls signed this is the whole 99:59:59.999 --> 99:59:59.999 approval process. It is absolutely ridiculous. Both sides agree that this was 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 99:59:59.999 --> 99:59:59.999 Trapper Keeper palettes as an example. So they have an idea that they want to 99:59:59.999 --> 99:59:59.999 create a palette that looks like a Trapper Keeper. So they get this plain white 99:59:59.999 --> 99:59:59.999 Trapper Keeper palette made by the factory. Glamour Dolls then takes this 99:59:59.999 --> 99:59:59.999 white packaging, this plain plastic packaging that's the mock-up, send it to 99:59:59.999 --> 99:59:59.999 Lisa, wait 10 business days. If she doesn't answer, they have to poke her and 99:59:59.999 --> 99:59:59.999 get her to give feedback. If she does approve of it, Glamour Dolls then takes 99:59:59.999 --> 99:59:59.999 her ideas, whatever she wants changed, and lets the manufacturing facility know. Then 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 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 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 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 99:59:59.999 --> 99:59:59.999 to make the artwork. Once the artwork comes in, again, they send it over to the 99:59:59.999 --> 99:59:59.999 manufacturer. The manufacturer puts it on the product. Then Glamour Dolls has to 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 99:59:59.999 --> 99:59:59.999 days again. If she doesn't respond, then they poke her - same process all over 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 99:59:59.999 --> 99:59:59.999 freaking ridiculous? Because it's not even over then! Even after Lisa has approved 99:59:59.999 --> 99:59:59.999 the final designed product, when they manufacture it - let's say they make 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 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 99:59:59.999 --> 99:59:59.999 to customers. And I will tell you my friend, this actually happened - 99:59:59.999 --> 99:59:59.999 according to Glamour Dolls - with the vegan leather makeup bag. This is the 99:59:59.999 --> 99:59:59.999 draft picture of the vegan leather makeup bag that was not designed, that people 99:59:59.999 --> 99:59:59.999 really excited about. This is the final design that was supposedly "The One," the 99:59:59.999 --> 99:59:59.999 makeup bag. Well it turns out, according to Glamour Dolls, Lisa didn't like this 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 99:59:59.999 --> 99:59:59.999 vegan leather anymore; she wanted it to be glitter plastic. And because of the 99:59:59.999 --> 99:59:59.999 sh**** ass contract that they signed, they couldn't sell those 10,000 bags that 99:59:59.999 --> 99:59:59.999 they had already made because she had approved the sample. They had to start all 99:59:59.999 --> 99:59:59.999 over again with a glitter bag design. I mean how f***ing ridiculous is this? The 99:59:59.999 --> 99:59:59.999 fact that Glamour Dolls signed this contract, did they not have a lawyer 99:59:59.999 --> 99:59:59.999 read it? Like what happened? How did this get through? From the very jump, this 99:59:59.999 --> 99:59:59.999 should have just never happened and I'm sure Glamour Dolls in hindsight is 99:59:59.999 --> 99:59:59.999 thinking the exact same thing. And my third question is "Why would they start a 99:59:59.999 --> 99:59:59.999 Kickstarter in February, knowing that Lisa's contract was ending in December?" 99:59:59.999 --> 99:59:59.999 Because that's where they really got screwed. This is what I'm thinking: I'm 99:59:59.999 --> 99:59:59.999 thinking Lisa designed all of the products and got everything going for those first 99:59:59.999 --> 99:59:59.999 four products before the Kickstarter even started. And that was why Glamour 99:59:59.999 --> 99:59:59.999 Dolls wanted to do more work with her. They were like "Yes, this was so smooth, 99:59:59.999 --> 99:59:59.999 this was so easy. Let's keep this going a little longer. We have until December, 99:59:59.999 --> 99:59:59.999 it's only February. We have all this time. We pushed out those four products pretty 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 99:59:59.999 --> 99:59:59.999 this." Glamour Dolls said publicly that they didn't start having problems with 99:59:59.999 --> 99:59:59.999 Lisa slowing down the process until June of 2017. So that was after the Kickstarter 99:59:59.999 --> 99:59:59.999 had already started, but before the estimated ship date that they told the 99:59:59.999 --> 99:59:59.999 backers of September. And it makes sense because if they started signing the 99:59:59.999 --> 99:59:59.999 contract in June of 2016, by February, they had made and designed 4 products. 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 99:59:59.999 --> 99:59:59.999 of the approvals by the time that the Kickstarter started so that's about 8 99:59:59.999 --> 99:59:59.999 months. So they're thinking "Well yeah this was so easy, we should be able to 99:59:59.999 --> 99:59:59.999 push out more products by December, by the time Lisa's contract ends." So now I 99:59:59.999 --> 99:59:59.999 shall present to you the worst case scenario of Lisa's a raging b****. 99:59:59.999 --> 99:59:59.999 [laughter] That's where we're gonna go with this. This is worst case scenario 99:59:59.999 --> 99:59:59.999 what happened, in that Lisa knew her contract was ending in December, she knew 99:59:59.999 --> 99:59:59.999 that she could slow down this process in order to get a new contract in December 99:59:59.999 --> 99:59:59.999 and price gauge the hell out of Glamour Dolls. She knew that they had already 99:59:59.999 --> 99:59:59.999 promised all of these products to the backers. She knew that they probably 99:59:59.999 --> 99:59:59.999 given her $125,000 of the backers' money. She knew that Glamour Dolls was already 99:59:59.999 --> 99:59:59.999 using the backer money in order to get these samples and ship them to her. The 99:59:59.999 --> 99:59:59.999 $370,000 that the backers had paid, probably a lot of it was already spent 99:59:59.999 --> 99:59:59.999 because that's why they started wanting - needing more money. They started selling 99:59:59.999 --> 99:59:59.999 the products on BackerKit, they started selling the crease brush on their website, 99:59:59.999 --> 99:59:59.999 they really started courting Hot Topic to try to sell products over there because 99:59:59.999 --> 99:59:59.999 Lisa was taking all of the Kickstarter backers' money for herself and they were 99:59:59.999 --> 99:59:59.999 using it for the manufacturing of these products and they knew it wasn't enough to 99:59:59.999 --> 99:59:59.999 see this whole project through because remember they've got 10 products they're 99:59:59.999 --> 99:59:59.999 trying to make by December. So time passes, Lisa drags this out, drags this 99:59:59.999 --> 99:59:59.999 out, and then drops the bomb on Glamour Dolls: "If you want this to continue, 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 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 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 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 99:59:59.999 --> 99:59:59.999 of it. Another place that they probably spent the backers' money was on Wengie 99:59:59.999 --> 99:59:59.999 because remember the call that Peter did with the backers? He mentions very 99:59:59.999 --> 99:59:59.999 briefly paying for a video. I'll play that for you. 99:59:59.999 --> 99:59:59.999 (Peter): We actually didn't make a profit off of this Kickstarter campaign. I know 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 99:59:59.999 --> 99:59:59.999 of it. But, um, we have to manufacture all those goods, uh, we have licensing fees 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 99:59:59.999 --> 99:59:59.999 for all these different things. 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 99:59:59.999 --> 99:59:59.999 and paid Wengie to make that video. Who knows how much he paid her because 99:59:59.999 --> 99:59:59.999 influencer rates back then, you know, it was brand new, you know, influencers 99:59:59.999 --> 99:59:59.999 getting paid for sponsored videos and things like that. I have no idea how much 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 99:59:59.999 --> 99:59:59.999 why they needed to raise more money. Because now in December, they not only 99:59:59.999 --> 99:59:59.999 have to get all of these 10 products manufactured but they also have to pay 99:59:59.999 --> 99:59:59.999 Lisa this $500,000. Lisa officially had Glamour Dolls by the unicorn balls. I mean 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 99:59:59.999 --> 99:59:59.999 it played out, other than to sign that contract and just hope for the best. If 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 99:59:59.999 --> 99:59:59.999 $500,000, we're cutting off the contract now." How do they pay back the backers? 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 99:59:59.999 --> 99:59:59.999 money to pay back the backers so they are absolutely screwed. Some other things 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 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, 99:59:59.999 --> 99:59:59.999 there'll be a part 3 [laughter] of this video is that they were saying more 99:59:59.999 --> 99:59:59.999 things about how Lisa interfered with the production of the product. So in the court 99:59:59.999 --> 99:59:59.999 filing, it says "Lisa Frank frequently and unreasonably rejected already manufactured 99:59:59.999 --> 99:59:59.999 samples without being specific as to the reason for disapproval." In their filing, 99:59:59.999 --> 99:59:59.999 they said that there was a problem with the Ipsy products. They said "in one 99:59:59.999 --> 99:59:59.999 instance, due to Lisa Frank's failure to timely provide artwork for the Ipsy sales 99:59:59.999 --> 99:59:59.999 order, Glamour Dolls missed the artwork deadline and was forced to pay a fine in 99:59:59.999 --> 99:59:59.999 the amount of $50,500." The filing continued on and said that Glamour Dolls 99:59:59.999 --> 99:59:59.999 was shipping her out samples and then she'd be like - 10 business days later - 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 99:59:59.999 --> 99:59:59.999 in this case, they may not have more samples because they requested a certain 99:59:59.999 --> 99:59:59.999 number of samples from the lab and then they mail the samples to Lisa Frank and 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 99:59:59.999 --> 99:59:59.999 to pay for that and then get those samples and then send those - wait for 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 99:59:59.999 --> 99:59:59.999 approve those. Do you see how it's just dragging everything out? And you remember 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 - 99:59:59.999 --> 99:59:59.999 that part of the contract was that Lisa would get her artwork back and that's 99:59:59.999 --> 99:59:59.999 what she did. She used that artwork on the Morphe products. The artwork she made for 99:59:59.999 --> 99:59:59.999 Glamour Dolls. You can see it on the Trapper Keeper-style palette that Morphe 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 99:59:59.999 --> 99:59:59.999 failed to comply with the inspection and approval process. Lisa's gonna have to 99:59:59.999 --> 99:59:59.999 prove this in court. She's gonna have to show them the evidence that Glamour Dolls 99:59:59.999 --> 99:59:59.999 didn't go through the proper approval process because even if it's unfair - 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 99:59:59.999 --> 99:59:59.999 Glamour Dolls signed that contract and said that they were gonna follow a certain 99:59:59.999 --> 99:59:59.999 process, they had to follow that process, even if it's bull****. And if Lisa can 99:59:59.999 --> 99:59:59.999 prove that they did things that were against the process, then she had a right 99:59:59.999 --> 99:59:59.999 to terminate the contract and get her artwork and then sell it to Morphe. It's 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 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 99:59:59.999 --> 99:59:59.999 by the judge for the 9 claims that Glamour Dolls has against Lisa Frank - the judge 99:59:59.999 --> 99:59:59.999 only dismissed part of claim 1. That was the breach of contract; they partially 99:59:59.999 --> 99:59:59.999 dismissed that but the judge says that Glamour Dolls can go forward on part of 99:59:59.999 --> 99:59:59.999 the breach of contract and everything else - including unjust enrichment, fraud, 99:59:59.999 --> 99:59:59.999 defamation, and all of those things - that they're moving forward with those 99:59:59.999 --> 99:59:59.999 claims, which means that the judge thinks that Glamour Dolls has enough evidence to 99:59:59.999 --> 99:59:59.999 support that these things happened. Not that Lisa isn't going to counter with 99:59:59.999 --> 99:59:59.999 something else but Glamour Dolls does have a case to present. And also like I 99:59:59.999 --> 99:59:59.999 mentioned in the last video, the last court filing for this was January 24th, 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 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] 99:59:59.999 --> 99:59:59.999 who knows? At this point my friend, it is your turn in the collective brain of 99:59:59.999 --> 99:59:59.999 makeup awesomeness. I would love to know your thoughts on this new information that 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 99:59:59.999 --> 99:59:59.999 Gothic Girl," thank you for sending me the link to this court document that I 99:59:59.999 --> 99:59:59.999 previously didn't have access to. It really opened my eyes to a lot of things 99:59:59.999 --> 99:59:59.999 and hopefully it added some context to you - if you watch the first piece - to what 99:59:59.999 --> 99:59:59.999 Lisa was saying about what was happening and what her counter suit is all about. 99:59:59.999 --> 99:59:59.999 Let me know any and all thoughts down in the comment section down below. Thank you 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 99:59:59.999 --> 99:59:59.999 little bit longer, YouTube should be recommending a couple of videos over here 99:59:59.999 --> 99:59:59.999 to watch. I'm gonna put a previous episode of "Behind the Controversy" down there. 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 99:59:59.999 --> 99:59:59.999 watch the top one, that one YouTube's picking for you based on your viewing 99:59:59.999 --> 99:59:59.999 history, which video they think that you're gonna like. But if you gotta go 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 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. 99:59:59.999 --> 99:59:59.999 Bye!