“Why did people join?
They didn’t join.
They were lured in.”
LuLaRich
These two beliefs would make it pretty easy to take advantage of people who are more vulnerable than you.
We can see the impact of these values throughout the series.
DeAnnes mother was ananti-Equal Rights Amendment activist named Maurine Startup.
The Cult
LuLaRoe has a lot in common with a charismatic church or a cult.
DeAnne Brady is so energetic and obsessed with performing femininity that it almost seems like watching a drag show.
Officially, LuLaRoe is a multi-level marketing company (MLM).
LuLaRich
In 2016 the top .01% of LuLaRoe independent distributors made $150,000 per month in bonuses.
That same year the bottom 70% made $0.
And there was a lot of money made by those at the top.
LuLaRich
LuLaRoe was founded in 2013.
In 2014 the company had$9.8 million in sales.
In 2017, they had 80,000 independent distributors and made $1.3 billion.
LuLaRich
By 2018 the company had over 20 lawsuits levied against it.
Now, there have been over 50.
The clothing LuLaRoe made wasnt even the real product being sold.
Wikimedia Commons
The real product was getting other women to become a LuLaRoe distributor at the $5k buy in.
The huge bonuses distributors were being paid came from recruiting more distributors, not from clothing sales.
The Victims
LuLaRoes independent distributors are mostly women.
They also tend to be mothers, from poor backgrounds, and white.
Many were military wives.
At its peak, LuLaRoe had 80,000 distributors.
They were lured in.
Few jobs offer both good pay and flexible hours, and LuLaRoe promised the best of both worlds.
The highest earning LuLaRoe distributors became the most visible on social media.
This is both the nature of LuLaRoe and social media.
The companys independent distributors arent the only people LuLaRoe victimized.
One supplier sued them for $49 million after the company fell months behind in paying them.
They accused DeAnne and Mark ofhiding money in LLCsso that they wouldnt have to pay what they owed.
LuLaRoe countersued for a billion dollars.
The Products
One designer interviewed inLuLaRichsaid she was tasked with creating 100 patterns a day.
For instance, some of the patterned leggings lookedcomically vulgarwhen worn.
Other products arrived to distributors wet and reeking of mold.
The clothing also became infamous for the poor quality and the ease with which holes appeared in LuLaRoe leggings.
This information was obscured by LuLaRoes culture of toxic positivity and hustle.
One value touted by LuLaRoe was the idea of retiring your husband.
On the surface, making enough money that your spouse doesnt have to work seems like a good thing.
Hef would also lease luxury cars for the women.
But I grew to feel it was meant to lock me in.
This kept distributors dependent on the company because they werent saving their income.
With a $5k buy in of course.
She thought thin saleswomen would recruit more distributors.
She alsopocketed $1,000 from each womanshe sent to the clinic.
The allegations would then be turned around until the complainant felt something was wrong withthemrather than the company.
A big component of LuLaRoe training and sales was hustle culture.
The message was clear: if you arent successful at LuLaRoe it is because something is wrong with you.
After a few brave people started speaking out, more and more people realized they had also been defrauded.
The result of this snowball effect has been more than 50 lawsuits and the docuseries itself.
Theres a lot more to this companys predatory history.
you could watch it all onLuLaRichstreaming now on Prime.
