September 17, 2021

Is LuLaRoe Still in Business? What Happened to the Leggings Empire

LuLaRoe, a personal apparel company founded in 2013, grew meteorically before dropping in popularity in the past few years. The MLM (multilevel marketing company) then faced legal troubles, accused of being a pyramid scheme. After resolving its legal troubles, is
LuLaRoe still in business?

Is LuLaRoe a pyramid scheme?

In a pyramid scheme, higher-level members must constantly recruit new members. Most of a pyramid scheme’s profits come from the addition of new recruits, rather than revenue from the sale of actual products or services. Many MLM companies, like LuLaRoe, face accusations of being a pyramid scheme but insist they’re not a scam because they sell an actual product.

The people who profit from a pyramid scheme are those at the top—they typically earn bigger kickbacks as more members are added. The business model is unsustainable, however, as the lower-level members can only benefit if they recruit more, and the supply of…

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