MLM Companies
LuLaRoe Review 2026
Patterned leggings MLM — $4.75M pyramid scheme settlement, subject of Amazon documentary
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
Potential for ongoing passive income
Simplicity
2.0
Easy to understand and execute
Transparency
1.5
Clear about costs, requirements, and income
Community & Support
2.0
Quality of training and community
Value for Money
1.5
Worth the investment
Overall Rating1.6
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.