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LuLaRoe
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LuLaRoe Review 2026

Patterned leggings MLM — $4.75M pyramid scheme settlement, subject of Amazon documentary
Residual Income Rating
1.6 / 5
Last updated:
January 15, 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
  • 13 years in business — still operating post-settlement
  • One-time fashion sales (limited residual)
  • 2024 avg gross: $11,914 (median: $1,046)
  • Recognizable brand with dedicated fans
Cons
  • Minimal residual income (one-time sales model)
  • $4.75M Washington State pyramid scheme settlement
  • Documented in "LuLaRich" Amazon Prime documentary
  • Peak 80,000+ retailers crashed from oversaturation

Rating Breakdown

Residual Income
1.6 / 5
Simplicity
2.0 / 5
Transparency
1.5 / 5
Community & Support
2.0 / 5
Value for Money
1.5 / 5
Overall Rating
1.6 / 5

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.

Quick Facts

Overall Rating
1.6 / 5

Founded2012

HeadquartersCorona, California

FoundersDeAnne & Mark Stidham

Legal IssuesMultiple lawsuits from former consultants; FTC investigation; Washington state AG settlement

Settlement$4.75M to Washington State AG — pyramid scheme lawsuit

DocumentaryLuLaRich (Amazon Prime, 2021)

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Information on this site is based on publicly available data including company income disclosure statements, FTC records, and BBB filings. Always verify current terms, costs, and income potential directly with each company before joining. Past earnings of top performers are not typical. See each company's income disclosure statement for typical results.

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