Recently Cookie Lee (jewelry MLM) has had a lot of problems, including apparently major corporate downsizing and exodus of consultants. The situation has gotten so dire, that many are wondering if the company is going under.

In comes Fashion Paramedic. She’s a Pink Truth friend, and she’s a former Cookie Lee consultant … well, actually a Cooke Lee consultant who pretty much quit, but then got terminated, and then was unterminated.

She wrote about the problems and questions surrounding Cookie Lee, including:

My inbox was HOT over the weekend with questions and concerns about Cookie Lee (CL). Rumors are rampant about CL’s financial stability, layoffs at the company, the CL lawsuit, and the number of consultants that seem to be quitting the business and sending their jewelry back for a refund. While a few of you made it clear that you would be concerned for me should I post anything about what I’ve read and heard, I would be remiss NOT to share what I could within certain limits.

Several of you asked whether or not CL (the actual company) is for sale. While I can’t confirm that, I did find that their building was for sale as of June 9, 2008. I did a Google search for the building’s address and found this link to the CBRE Website Listing. There is also a “For Lease” listing as well.

Now, why the building is for lease/sale is unknown to me. Maybe they are moving. Maybe they don’t need as much space as they used to, or need more space than they have. I just know that the building was at one time listed for both sale and lease.

There has also been talk at message boards and questions posed to me about the quality of CL’s jewelry, layoffs at CL corporate, and consultants resigning and returning their jewelry at a rate that is higher than normal. I’d like to first say that message boards — while they are fun for gossip and a good way to connect with others — aren’t exactly filled with fact. I’d normally dismiss talk at message boards to be nothing but “heresay.” But, when I see it at more than one board, hear it from more than one source, and receive the same questions more than once in my inbox, I tend to think that there may be some truth behind the rumors.

[snip]

IF YOU ARE CONSIDERING JOINING COOKIE LEE, my advice to you is to HOLD OFF. Let your consultant know that you’ve got some concerns about CL’s financial stability and that you’re not hot on the idea of joining a company and putting work into a business that may not be around in a year. That doesn’t mean avoid CL altogether — instead of joining, you can still be a really good hostess for your consultant and earn free and discounted jewelry for yourself in the process.

I am crossing my fingers in hope that the executive- and director-level consultants are completely in the dark about this. Right now, hundreds of them are planning summer retreats with their units and meet-ups at convention this August. They have smiles on their faces as they tell would-be consultants that Cookie Lee is the best direct sales company in the nation. They continue to give motivation to their current consultants to reach their goals and take their business to the next level.

But, it would be absolutely shameful to find out that they DID know something, still continued to recruit people into the business, encouraged them to buy jewelry and recruit even MORE people, and then have it all collapse because they built their hopes on a foundation of sand.

THAT’S what I’m hoping to prevent by sharing what I know.

Naturally, any such discussion of “negative” aspects of Cookie Lee is verboten. Fashion Paramedic began receiving emails from consultants, some of them upset that she’d dare write about the company. After all, the people higher on the food chain still need to recruit and frontload, and any discussion of the company’s financial difficulties and potential closure might impact that!

And the company wasn’t too pleased either. They terminated her for violating this provision in their policies and procedures manual:

5.3 – Nondisparagement

Cookie Lee wants to provide its Independent Consultants with the best products, compensation plan and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the Consultant Care Department. Remember, to best serve you, we must hear from you! While Cookie Lee welcomes constructive input, negative comments and remarks made in the field by Consultants about the Company, its products or Compensation Plan serve no purpose other than to sour the enthusiasm of other Cookie Lee Consultants. For this reason, and to set the proper example for their Downline, Consultants must not disparage, demean or make negative remarks about Cookie Lee, other Cookie Lee Consultants, Cookie Lee’s products, the Marketing and Compensation Plan or Cookie Lee’s directors, officers or employees.

And then after writing about being terminated , Fashion Paramedic was unterminated. Who can keep up? 

I’m so proud of Fashion Paramedic for helping to get the word out about Cookie Lee. Just like Mary Kay, it sounds like the company is tight-lipped about what’s going on… to the detriment of consultants.

Welcome to the club, sister. You are forever more a negative person who should be avoided for daring to tell the truth about a multi-level marketing company. Prepare to be called a dream stealer and a lazy “looser” who just couldn’t hack it in “direct sales.” Much name-calling is soon to be headed your way, and we love you for it. Rock on…