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MLM Companies

LuLaRoe Review 2026

Patterned leggings MLM — $4.75M pyramid scheme settlement, subject of Amazon documentary

1.8

HomeBusinessWatch Rating

Last updated: March 20, 2026

What is LuLaRoe?

Colorful patterned clothing and leggings MLM founded by DeAnne and Mark Stidham in 2012. At its peak had 80,000+ retailers. Paid $4.75 million to Washington State AG to settle pyramid scheme lawsuit. Subject of the Amazon Prime documentary "LuLaRich." Still operating but significantly scaled back.

Pros

  • Unique, recognizable patterned clothing with a dedicated fan base
  • Flexible home-based business model
  • Company still operating post-settlement

Cons

  • Paid $4.75 million to settle Washington State pyramid scheme lawsuit
  • Settlement prohibits operating a pyramid scheme and requires accurate income disclosures
  • Subject of Amazon Prime documentary "LuLaRich" exposing business practices
  • Former retailers reported losing tens of thousands of dollars in unsellable inventory
  • Peak 80,000+ retailers crashed — massive oversaturation destroyed most businesses
  • Clothing quality issues and legging defects generated enormous negative press

Rating Breakdown

Residual Income
1.5

Potential for ongoing passive income

Simplicity
2.0

Easy to understand and execute

Transparency
1.5

Clear about costs, requirements, and income

Community & Support
2.5

Quality of training and community

Value for Money
1.5

Worth the investment

Overall Rating
1.8

Frequently Asked Questions About LuLaRoe

Is LuLaRoe a pyramid scheme?
LuLaRoe paid $4.75 million to settle a Washington State Attorney General lawsuit asserting it operated a pyramid scheme. The settlement prohibits the company from operating a pyramid scheme and requires accurate income disclosures. The Amazon Prime documentary "LuLaRich" detailed the practices that led to the lawsuit.
Is LuLaRoe still in business?
Yes. LuLaRoe is still operating as of 2025, but at a significantly reduced scale compared to its peak of 80,000+ retailers. The company has faced major scrutiny, multiple lawsuits, and continues under the terms of its settlement with Washington State.
Did LuLaRoe retailers make money?
Many LuLaRoe retailers reported significant financial losses, particularly as the market became oversaturated with 80,000+ retailers all competing in the same model. Former retailers documented losing $10,000-$100,000+ in unsellable inventory in the Amazon documentary LuLaRich.