If you’re like me, you can’t resist a good scam takedown. Both Fyre Festival Documentaries? Streamed. The inventor, about Elizabeth Holmes and Theranos? Check. McMillions, about the rigged McDonald’s Monopoly game? I love it. There is just a certain fascination – and maybe a little malicious glee – in witnessing a plan that is too big to fail. So of course LuLaRich was the newest addition to the list.
The new four-part Prime Video documentary series directed by Jenner Furst and Julia Willoughby Nason focuses on the hugely popular women’s clothing brand and multi-level marketing company LuLaRoe. Founded in 2013, the brand experienced explosive popularity in the 2010s with the help of social media. Its draws included its comfy printed leggings and positioning as a #girlboss part-time business opportunity for women. But LuLaRoe eventually got into lawsuits over “defective” products and allegations of functioning as a pyramid scheme. As LuLaRich shows in its lighter moments, some inventory items showed phallic patterns and in some cases a so-called “dead fart” stench. In its darker scenes, former retailers described how they went into debt as they struggled to keep their businesses afloat.
In February, LuLaRoe paid $ 4.75 million in settlements after being sued for violating Washington state’s anti-pyramid program laws, AP reports. “LuLaRoe has led Washingtoners to buy into its pyramid scheme with fraudulent claims and false promises,” Attorney General Bob Ferguson said in a statement. “As a result, thousands lost money and two individuals made millions from their system.” Of the total severance payment, $ 4 would be paid to Washington-based LuLaRoe retailers. According to the agreement, LuLaRoe was obliged, among other things, to “publish an income statement that precisely describes the income potential of the retailers”. Customers, former employees and the brand’s suppliers have also sued the company. Nevertheless, LuLaRoe managed to survive.
LuLaRoe actually still exists, which becomes clear at the end of the documentary series. (Its website and Instagram alive and well.) However, it has since cut startup costs by 90 percent and reorganized its compensation structure. An annual income statement is also available on his website, which is often linked to in their Instagram posts. The latest report states that “the retailer’s average gross profit was $ 10,073.41 while the average gross profit was $ 1,444.65”. A chart on the side shows that 50 percent of retailers made between $ 1 and $ 4,999, while less than three percent made over $ 75,000.
LuLaRoe co-founders DeAnne and Mark Stidham, whose interviews appear in LuLaRich, did not directly address the claims made in the document. But the company did share a statement that reads: “We continue to focus more on our mission to improve lives and empower families through entrepreneurship as we continue to educate small business owners about the opportunities for personal responsibility and choice. “
On the other hand, some loyal LuLaRoe dealers defend the brand in the valuation area of LuLaRich, diversity reported. According to the point of sale, a seller asked other members of a Facebook group to leave one-star reviews of the series. At the time of writing, five percent of the reviews are one-star ratings (some of which are referring to the series as “boring” and “junk”) while 92 percent have five-star ratings.
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Thinking about LuLaRoe’s future, Furst said diversity“It was effective to focus on fewer people. There are many satisfied customers and people who stand behind the LuLaRoe message – and good for them. “
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