LuLaRoe

LuLaRoe
Company typePrivate
IndustryFashion (Pyramid Scheme)
Founded2012
Founders
  • DeAnne Brady
  • Mark Stidham
HeadquartersCorona, California, U.S.
Area served
United States
Key people
Mark Stidham (CEO)
ProductsWomen's apparel
RevenueIncrease US$2.3 billion (2017)[1]
Websitelularoe.com

LuLaRoe is a United States-based multi-level marketing company that sells women's clothing.[2][3] It was founded in 2012[4] by DeAnne Brady and her husband Mark Stidham and is currently based in Corona, California.[5]

As a multi-level marketing company, LuLaRoe recruits independent distributors (referred to by the firm as "fashion consultants") upon ordering $499.00 in inventory, with bonuses paid for selling product to an end customer and for recruitment. A retailer can make money through recruiting or through selling product to an end consumer. The startup cost has been reduced 90% in 2022.[5] LuLaRoe reported sales of approximately US$1 billion in 2016, making it one of the largest firms in the multi-level marketing industry at the time,[5] and by 2017, there were approximately 80,000 independent distributors selling the company's clothing.[3]

The company has received criticism and faced lawsuits from distributors and consumer advocates over several issues related to its business model, and for problems with the quality and design of its products.[5][6][7]

A class-action lawsuit filed in California in October 2017 and a lawsuit filed by the Washington State Attorney General in January 2019 accused LuLaRoe of being a pyramid scheme.[8][9]

  1. ^ Peterson, Hayley (2018-11-20). "LuLaRoe is facing mounting debt, layoffs, and an exodus of top sellers, and sources say the $2.3 billion legging empire could be imploding". Business Insider. Retrieved 2019-11-10.
  2. ^ Johnson, Megan (July 8, 2016). "Today's Tupperware party is held on Facebook". The Boston Globe. Retrieved January 20, 2017.
  3. ^ a b Peterson, Hayley (April 25, 2017). "LuLaRoe is refunding everyone for pants that customers say 'rip like wet toilet paper'". Business Insider. Retrieved April 25, 2017.
  4. ^ Diep, Francie (December 15, 2016). "Why Do So Many Women Love LuLaRoe?". Pacific Standard. Retrieved January 16, 2017.
  5. ^ a b c d Berr, Jonathan (March 2, 2017). "LuLaRoe's business is booming, but some sellers are fuming". CBS News. Retrieved March 26, 2017.
  6. ^ Cite error: The named reference schreiber1 was invoked but never defined (see the help page).
  7. ^ Cite error: The named reference wicker was invoked but never defined (see the help page).
  8. ^ Suddath, Claire (2018). "Thousands of Women Say LuLaRoe's Legging Empire Is a Scam". Bloomberg Businessweek. Retrieved 14 May 2018.
  9. ^ Cite error: The named reference BI012519 was invoked but never defined (see the help page).