In 2015, thousands of hopeful retailers bought into LuLaRoe, one of the largest MLM clothing companies, only to have their dreams dashed.
In 2015, thousands of hopeful retailers bought into LuLaRoe, one of the largest MLM clothing companies, only to have their dreams dashed. Before long, lawsuits and allegations that LuLaRoe was operating a pyramid scheme started filing in from retailers, many of them women and stay-at-home moms who had risked their homes, their bank accounts, and their relationships with close family and friends in an effort to be their own boss by selling LuLaRoe leggings.
Join BuzzFeed News reporter Stephanie McNeal as she chronicles how so many people got caught in this scheme of leggings and lies with expert interviews and first-hand accounts from the recruits who lived it—and are fighting back.
Find episode transcript here: https://the-rise-and-fall-of-lularoe.simplecast.com/episodes/introducing-the-rise-and-fall-of-lularoe
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Back in 2015, LulaRoe was everywhere.
You couldn’t escape their colorful - “buttery soft” leggings” - it seemed like everyone knew someone who was selling them.
LulaRoe wasn’t just selling leggings. They were selling the dream of being your own “girl” boss and making big bucks for part time work. And tens of thousands of people bought in.
Roberta: [00:12:29] I was watching how things were flying off the shelf, how people were getting boxes and people shopping the boxes you can't even keep this inventory in and I'm thinking, Holy crap, I could do this
For them, LulaRoe was more than a company. It was a movement.
But the real story was much more complicated.
Most LulaRoe retailers claim they were actually losing money. Putting in endless hours for barely any sales. And getting defective inventory like moldy leggings.
Meanwhile, the founders? They were cashing in.
By 2017 - retailers wanted out. They were leaving in droves.
[News clip: Denver7]
Newscaster: they invested thousands of dollars, believed in the brand, and bought into a dream - but tonight women are filing a class action lawsuit accusing lularoe of being a pyramid scheme
Heidi: [00:46:48] My red flags went up actually for real. I was like, What the hell have I done?
Welcome to The Rise and Fall of LulaRoe - a podcast from Discovery Plus about the story of LulaRoe through the voices of its victims.
I’m Stephanie McNeal - a BuzzFeed News senior culture writer who has covered LulaRoe since 2017.
And on this show, I’m talking directly with the people who lived the LulaRoe story.
From women who lost it all
Heidi: [01:11:05] I think that I probably lost around 50 grand, maybe more
To retailers who figured out how to fight back
Roberta: [01:12:31] That group saved my life. // Roberta: [01:13:33] we created something that couldn't be stopped.
To experts who break down…how do multi-level-marketing schemes work? And why do so many MLMs target women – and moms – in particular??
Meg: [00:50:43] these are people who have been told, // that if they just worked hard enough, that if they just had a good enough idea // then the American dream, // would be theirs.
Listen to The Rise & Fall of LulaRoe wherever you get your podcasts.
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