Paparazzi Jewelry has been a familiar name in affordable fashion accessories over the past decade. If you scroll through Facebook or drop by a local vendor event, you’ve probably seen someone selling their $5 jewelry. The company operates as an MLM (multi-level marketing) business, relying on independent consultants who buy inventory and then sell pieces directly to their customers—sometimes online, sometimes at pop-up events.
This business model made Paparazzi pretty popular, especially among folks looking for side income or community. But over the past couple of years, Paparazzi Jewelry hasn’t just been making headlines for its trendy necklaces and earrings.
Paparazzi’s Legal Problems: Where They Started
In March 2025, the Washington State Attorney General announced a major legal settlement with Paparazzi Accessories, which is based out of Utah. The investigation pointed at two key issues: whether Paparazzi’s MLM structure actually operated more like a pyramid scheme, and whether the company gave misleading information about the metals used in their products.
It turns out, the Attorney General’s office found evidence that Paparazzi was telling consultants and customers their jewelry was totally free of lead and nickel. This is a big deal for anyone with skin sensitivities or safety concerns. But the state’s own testing, as well as Paparazzi’s internal results, showed that some pieces did, in fact, contain those metals. That alone raised credibility questions for a lot of sellers and buyers.
At the same time, regulators said Paparazzi’s business model put too much focus on recruiting new consultants—as opposed to just selling products to customers. When MLMs are really about recruitment rather than sales, they can land in legal gray areas associated with pyramid schemes.
The Settlement Agreement: Money, Refunds, and New Rules
Paparazzi didn’t admit to breaking the law, but the company agreed to some serious changes as part of the settlement. The main points included paying a $1.9 million settlement. But the agreement wasn’t just financial—it also forced Paparazzi to revamp how it works with both its consultants and customers moving forward.
One important change: consultants in Washington who bought merchandise since January 2017 but still have unsold inventory could now claim full refunds. There’s also a new process for customers seeking refunds if they received jewelry that wasn’t actually lead- or nickel-free, despite being promised otherwise.
The company also has to be a lot more careful in labeling product materials and avoid marketing claims that can mislead people. The rules aim to make Paparazzi’s whole sales and marketing system more honest and straightforward.
Paparazzi Has to Change How It Does Business
With these new conditions, Paparazzi’s leadership needed to rethink certain aspects of how they do business. This meant more transparency about what’s actually in the jewelry, along with a much clearer separation between product sales and the “recruitment” side of their business—at least in places like Washington.
Consultants now face tougher guidelines on how they advertise Paparazzi accessories. They have to give accurate info about what metals are used in each design. Also, they can’t make big promises about income potential unless there’s solid data to back that up.
Some sellers say these changes slow things down or raise hurdles for those trying to build a team. The company has to track inventory more closely and respond more directly to product complaints and refund requests. For a lot of consultants, there’s some confusion about what’s allowed, and it’s led to plenty of talk in the Paparazzi Facebook groups and consultant chats.
Is Paparazzi Going Out of Business?
A lot of people are asking if Paparazzi Jewelry is shutting down for good after all this. At the moment, the answer is no. The company is still up and running, and there’s been no official announcement about closing down.
If you check the main Paparazzi website or talk to consultants, operations are still business as usual. There are still new releases, and consultants are still hosting live sales or home parties in every state, including Washington.
Still, these kinds of legal and public relations hits can leave a mark. The trust between some consultants and corporate headquarters seems to have taken a hit, if forum chatter is anything to go by. Some are waiting to see if Paparazzi’s long-term reputation survives, or if more regulators decide to step in elsewhere.
Consultant Fallout: What Are People Saying?
After news of the settlement broke, you could see the shift in consultant communities almost instantly. While some decided to stick it out and adapt to the new refund rules and product claims, a noticeable number have decided to part ways with the brand.
Social media groups got lively. Some sellers vented about things like missed refund opportunities, customers feeling misled about what’s in the jewelry, or concerns about how the company handles complaints. There are also former consultants who say they left months ago, before the news became public, because they didn’t like the company’s response to earlier customer questions about metal content.
But there are still plenty who plan to keep selling or even try to grow their teams under the new guidelines. Many say their customers don’t seem worried, thanks to the low price points and the social nature of the business—at least for now.
Typically in these MLM communities, word travels fast. Stories from one group can show up in others within hours. If Paparazzi wants to keep its salesforce on board, keeping communication open and straightforward is likely key.
Can Paparazzi Recover? What the Future Could Look Like
One big challenge now is trust. Not just between consultants and corporate, but between sellers and customers as well. Are people buying these $5 earrings or necklaces for fun? Sure—but no one wants an unexpected allergy issue.
Regulatory agencies will be keeping an eye on Paparazzi in the coming year, watching whether the company sticks to the new rules about honest product descriptions and careful business practices. If Paparazzi faces similar investigations in other states, or new lawsuits, further change could happen.
Some analysts say the brand might need to offer more frequent updates about product testing, along with more detailed FAQs about refunds and returns. We might see new product labels or a more robust online customer support platform.
For consultants, this could mean slower onboarding of new team members, and less focus on recruitment bonuses. For customers, it’s probably a plus, as they get more clarity about what’s in each piece of jewelry.
For now, if you’re a consultant or a loyal customer, it’s a waiting game to see how—or if—Paparazzi can regain your confidence. Other MLM companies have weathered storms like this, but some never quite manage to win everyone back.
For those interested in exploring what’s happening across MLM companies or seeing more news coverage about small business shifts, outlets like serabusiness.com often track industry-wide trends.
The Takeaway: Where Things Stand with Paparazzi Jewelry
So, bottom line: Paparazzi Jewelry is not out of business. They’re still selling, still recruiting, and still hosting parties around the country. But this recent high-profile settlement means the company needs to work harder to earn its place with customers and consultants alike.
The new legal agreement puts pressure on Paparazzi to do things differently. There will be more eyes on their product testing and marketing, and folks want to see transparency both in communication and in jewelry quality.
For people considering becoming a Paparazzi consultant, it’s wise to dig into the refund policies, the new material disclosures, and what state officials are saying. For shoppers, you should ask questions about what’s actually in the jewelry and pay attention to any updates from your local consultant.
As for the future, there’s no clear prediction just yet. Paparazzi’s ability to balance legal compliance with consultant energy and customer trust will determine what comes next. For now, the company is moving forward—walking a tricky line but still very much in business.
If you’re watching this story, expect updates as Paparazzi and similar companies adjust to new realities in direct sales. No drama, just some uncomfortable changes—and maybe, in time, a stronger relationship with the people who make MLM companies like Paparazzi tick.