LulaRoe is a multi-level marketing company based in the U.S. that specializes in selling leggings, dresses, and shirts for women.
The company was founded in 2012 by DeAnne Brady and her husband, Mark Stidham, and is headquartered in Corona, California.
LulaRoe claims to operate as a multi-level marketing company, where distributors first purchase inventory at a wholesale price from LulaRoe & then earn money by making direct sales to consumers
In 2014, LulaRoe’s took over the internet & made $9.8 million in sales. And by 2017, the company’s growth was massive, with a network of 80,000 distributors.
However, in the same year, dozens of customers, employees, suppliers, etc., filed lawsuits against them, citing quality issues, deceptive practices, and unfair refund policies.
In the year 2018, LulaRoe started facing financial turmoil and layoffs. The company faced a lawsuit of $49 million from its chief clothing supplier for non-payment of bills.
LulaRoe faced a lawsuit from the Washington State Attorney General for running a pyramid scheme.
If you take a look at LulaRoe’s social media channels & website, you will see that everything is working as usual. Their Instagram is full of retailers' success stories.