Network Marketing Company Directory
Products: Leggings, dresses and women's apparel.
LuLaRoe is a clothing MLM that grew explosively around 2016 selling patterned leggings through independent "retailers", then contracted sharply amid lawsuits.
In 2019 the Washington State Attorney General sued LuLaRoe, alleging an illegal pyramid scheme and deceptive income claims. In 2021 LuLaRoe settled for $4.75 million without admitting wrongdoing and agreed to pay bonuses only on a seller's own sales. The 2021 documentary LuLaRich documented large losses by many consultants who bought inventory they couldn't sell.
A textbook cautionary tale about inventory-loading: retailers were encouraged to buy large amounts of stock, and many lost money. If any clothing (or other) MLM pressures you to buy inventory upfront to "qualify", treat it as a major red flag — see our pyramid-scheme test.
Many consultants lost money after buying inventory; the settlement itself was largely about redress for sellers. Model any apparel-MLM opportunity with the income calculator, including unsold stock.
A U.S. state (Washington) formally alleged LuLaRoe was an illegal pyramid scheme; LuLaRoe settled in 2021 for $4.75 million without admitting wrongdoing and changed its bonus structure to pay only on a seller's own sales. It remains operating but much smaller.
Some early sellers did, but many lost money buying inventory they couldn't sell — a pattern documented in lawsuits and the LuLaRich series. Be very cautious about any requirement to buy stock upfront.
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