LuLaRoe 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.


  • Filed complaint with DSSRC (which was rejected due to pending litigation)
  • Filed complaint with State of Washington


April 2 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

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.

July 10 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 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.


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