LuLaRoe
TINA.org investigated LuLaRoe, a California-based multilevel marketing company that sells clothing, and found, among other things, that it uses atypical income claims to market the company’s business opportunity in violation of a 2021 Washington Consent Decree, and that numerous current and former LuLaRoe distributors have filed for personal bankruptcy.
Highlights
- Filed complaint with DSSRC (which was rejected due to pending litigation)
- Filed complaint with State of Washington
Timeline
2021
April 2
TINA.org files a complaint with the State of Washington against LuLaRoe alleging that the company is violating the February 2021 Consent Decree by marketing its business opportunity with atypical income claims, and modifying graphics in its income disclosure statement to deemphasize the fact that nearly 20 percent of LuLaRoe distributors either made no money or lost money last year.
February 2
A Consent Decree is entered in the State of Washington’s lawsuit against LuLaRoe that, among other things, permanently prohibits the company from misrepresenting to Washington residents (or making misrepresentations in the state of Washington) that participants will or are likely to achieve substantial income or profit. The Consent Decree also requires LuLaRoe to maintain “unmodified graphics” in its Washington income disclosure statement.
2019
July 10
TINA.org files a complaint with the DSSRC regarding the company’s use of deceptive and atypical income claims, but the DSSRC declines to consider the matter because of the pending case against the company by the State of Washington.
April 30
TINA.org publishes the findings of an investigation revealing that at least 115 current or former LuLaRoe distributors have filed for personal bankruptcy since 2016, with more than half of those filings occurring in 2018. In fact, LuLaRoe distributors are more likely to end up bankrupt than to reach the highest tier in the company’s distributor ranks.
January 23
The state of Washington sues LuLaRoe alleging it operates an illegal pyramid scheme.
Evidence
Featured
LuLaRoe to Pay $4.75 Million to Settle Pyramid Allegations
Settlement avoids a trial that had been scheduled to begin on Feb 16.
The Latest
LuLaRich or LuLaRuined?
New documentary explores the rise and fall of LuLaRoe.
How LuLaRoe Made Its Founders Rich While So Many Others Went Bankrupt
Megan Carpentier, Oxygen
The Cost of Doing Business
Comparing the amount companies agree to pay to settle deceptive marketing charges with their annual revenue.
LuLa-NO: Clothing MLM Violating Court Order
TINA.org alerts Washington AG’s office to deceptive income claims and more.
Court Unseals Revealing Docs in LuLaRoe Pyramid Case
LuLaRoe’s founders on the hotseat in Washington’s pyramid case against the company.
TINA.org Report: Over 100 LuLaRoe Distributors Have Filed for Bankruptcy
MADISON, CONN. April 30, 2019 – LuLaRoe (LLR) distributors are more likely to end up bankrupt than to reach the highest tier in the company’s distributor ranks, according to a new…
LuLaRoe Bankruptcy: By The Numbers
LuLaRoe bankruptcies by the numbers
LuLaRoe Distributors in Bankruptcy as Founder Touts Financial Freedom
At least 115 current or former LuLaRoe distributors have filed for personal bankruptcy since 2016.
More than 100 LuLaRoe sellers have filed for bankruptcy
Chavie Lieber, Vox
7 Signs LuLaRoe Is Sinking
Legging MLM struggles to stay afloat after meteoric rise.
Class-Action Tracker
LuLaRoe Pyramid Scheme Claim
Allegations: Pyramid scheme allegations
LuLaRoe Pyramid Scheme Allegations
Allegations: Pyramid scheme allegations
LuLaRoe’s Return Policies
Allegations: Misrepresenting return and refund policies and practices
LuLaRoe Pyramid Scheme Claims
Allegations: Failing to disclose that it operates an illegal pyramid scheme