The Amazon Prime series LuLaRich looks into the lucrative yet precarious world of LuLaRoe, a fashion-based MLM — but what is the company doing today? While MLMs have been increasing in popularity over the years, documentaries like LuLaRich and Betting on Zero, a documentary on the MLM Herbalife, are opening people's eyes to the dangers of LuLaRoe and multilevel marketing companies.

LuLaRoe was founded back in 2013 by DeAnne and Mark Stidham. In its early days, DeAnne sold maxi skirts out of the trunk of her car to local — yet fiercely loyal — customers. Over time, the company took on multiple "retailers" who purchased clothing from DeAnne and Mark to resell. LuLaRoe quickly exploded on social media, amassing over 80,000 independent retailers. As of 2017, LuLaRoe made over $2.3B in revenue. The company soon grew too quickly, however, as the quality of products quickly dwindled. Without the ability to handle the size of their company, overflow product was stored outdoors at the mercy of the elements, causing an influx of moldy and sun-stained products. When the company did its best to avoid refunding retailers and denying all culpability, retailers left LuLaRoe in a mass exodus.

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In 2017, the Washington State Attorney General's office filed a lawsuit against LuLaRoe for operating as a pyramid scheme. LuLaRoe settled the lawsuit in February 2021 with a payment of $4.74M and an agreement to restructure their business practices. LuLaRoe was required to be more transparent with their independent retailers; their site now prominently features an income disclosure statement for 2020, a Washington state income disclosure, and a warning that the company can not promise any kind of income. The LuLaRoe website even warns that new members "should not expect to achieve similar results" to their advertised retailers' stories.

DeAnne and Mark Stidham sitting and being interviewed in LuLaRich

Despite these setbacks, LuLaRoe is still in the MLM business. The initial buy-in price for new retailers was once a major Blockbuster Video-esque controversy — anywhere from $5000 to $10000 — but it now sits at a much more affordable $499. The company certainly doesn't have as many retailers as it did before the mass exodus. A recent post on the LuLaRoe Instagram mentions that only 724 retailers, 4.23% of their retailers, qualified for their DREAM trip — that puts LuLaRoe at just over 17000 retailers, a far cry from their peak years. The company seems ready to put the controversy behind them and rebuild; they've released new clothing items to their website, shared testimonials from their remaining retailers, and posted sunny photos of their 2021 D.R.E.A.M. cruise to Cancun.

The drop of the new Amazon Prime series seems to have ruffled the feathers of some current LuLaRoe retailers, however. The reviews of LuLaRich were flooded with one-star responses in an attempt to reduce ratings and discredit the documentary. The reviews criticize the documentary for being biased and pandering to ex-consultants who just wanted to take LuLaRoe down for their own failures. Despite their efforts, LuLaRich still has 4.5 stars on Amazon. Current retailers also spoke out on social media amidst the backlash of the documentary — no doubt at the urging of their upline —with the hashtag #NotMyStory, defending LuLaRoe and sharing their own experiences. With the release of LuLaRich, it seems LuLaRoe has yet another PR hurdle to conquer.

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