LuLaRoe

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LuLaRoe is an American multi-level marketing company that sells women's clothing. It was founded in 2012 by DeAnne Brady and her husband Mark Stidham and is currently based in Corona, California. As a multi-level marketing company, LuLaRoe recruits independent distributors (referred to by the firm as "fashion consultants") upon ordering nearly $5,000 in inventory, with bonuses paid for selling product to an end customer and for recruitment. A retailer can make money through recruiting or through selling product to an end consumer. The startup cost has been reduced 90% in 2022. LuLaRoe reported sales of approximately US$1 billion in 2016, making it one of the largest firms in the multi-level marketing industry at the time, and by 2017, there were approximately 80,000 independent distributors selling the company's clothing. The company has received criticism and faced lawsuits from distributors and consumer advocates over several issues related to its business model, and for problems with the quality and design of its products. A class-action lawsuit filed in California in October 2017 and a lawsuit filed by the Washington State Attorney General in January 2019 accused LuLaRoe of being a pyramid scheme.