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Is LuLaRoe Going Out of Business? Is It a Scam?

Kierstin studied business communications at Northwestern Michigan College.

Initially, many excited entrepreneurs jumped aboard LuLaRoe's direct-marketing-fueled clothing craze, but now, some are doubting the company's health.

Initially, many excited entrepreneurs jumped aboard LuLaRoe's direct-marketing-fueled clothing craze, but now, some are doubting the company's health.

Back in the fall of 2017, my feeds were filled with a whole lot of #LuLaHate as consultants found out the hard way that LuLaRoe's 100% refund on unsold inventory for sellers deciding to close up their digital shops was no more.

Looking more deeply into the drama, I found that many consultants called it quits as a result of this policy change. Since then, the company has also faced legal troubles with their primary distributor (link at the bottom of this article). While these things don't necessarily indicate a failing business, many see them as signs that the brand may be on its way out.

The reality of direct sales is that a lot of people dive in, a lot of people jump back out, and then, inevitably, more people dive in after them. That's good news for LuLaRoe since they make thousands upon thousands off of each new consultant's initial startup whether or not that consultant decides to stick around. Still, there are plenty of other factors that don't necessarily bode well for the company's future. Each of the statements listed below will be explored in more detail in the following sections.

10 Reasons Why LuLaRoe May Be Failing

  1. Their customers aren't satisfied.
  2. Consultants feel cheated by the new return policy.
  3. Consultants don't get to pick their merchandise.
  4. Their founders are not transparent.
  5. Their clothing is overpriced and low-quality.
  6. Their style is outdated.
  7. Their business model isn't sustainable.
  8. They rely on consultants—not customers—for income.
  9. The market is oversaturated.
  10. Consultants are punished for marketing their products.

1. Their Customers Aren't Satisfied

To clarify, the company's customers are their direct sales consultants—those who purchase inventory for resale—not the actual end-customers making individual clothing purchases. With a model that relies heavily on social media, news of dissatisfaction is spreading like wildfire across the very places that consultants are encouraged to sell their LuLaRoe inventory.

Never forget that in the end, consultants are LuLaRoe's customers. Unhappy consultants = unhappy customers = fewer new buy-ins = less money for LuLaRoe. So, maybe the company is still somehow staying afloat, but if they don't shake up their business model and redeem themselves among their base, they may be well on their way out.

2. Consultants Feel Cheated by the New Return Policy

Lots of direct-sales consultants get peeved with their company's policies, right? Very true, but many of them don't have the amount of money invested that LuLaRoe requires their consultants to spend up-front. LuLaRoe consultants must invest into product lines whose success depends largely on fashion trends and supply and demand. Many customers will pay big bucks for a unicorn pattern but wouldn't even pay an Old Navy end-of-season-clearance price for most of LuLaRoe's other patterns and styles.

Now, back to that return policy. As LuLaRoe states, they didn't get rid of their 100% refund return policy; they just went back to the old policy of a 90% refund. Of course, to even receive the 90% refund, consultant-returned merch has to pass some pretty strict standards to be considered resealable. Those standards include but are not limited to merchandise that was purchased by the consultant within the past year with tags still attached in packaging that hasn't been damaged.

Why Is This a Problem?

Most consultants immediately unstuff their big ol' boxes of brightly patterned leggings, perfect-T's, and various feminine-monikered tops, skirts, dresses, and cardigans to display at shows and on their social media. That's how consultants make sales. This return policy leaves a lot of consultants scrambling to sell their products before closing up shop as they face a pretty sizable loss by choosing to return unsold merchandise to headquarters. Yet, the reason a lot of those products haven't sold in the first place is that they're butt-ugly or no longer in style.

Just because brightly colored and absurdly patterned leggings are waning in popularity doesn't mean LuLaRoe's consultants can return their piles of unsold inventory.

Just because brightly colored and absurdly patterned leggings are waning in popularity doesn't mean LuLaRoe's consultants can return their piles of unsold inventory.

If I start a business with LuLaRoe, I lose control of my ability to make wise fiscal choices right from the start because consultants don't even get to pick their sizes with their first order.

3. Consultants Don't Get to Pick Their Merchandise

And here is the fatal flaw in the LuLaRoe business model—the supposed business owner (the consultant) does not get to pick which specific products they purchase for resale. Yet, they must carry inventory.

This doesn't make a lot of sense from an investment perspective. If I decide to start a little boutique selling, say, all handmade items from Etsy Wholesale (no, I've never daydreamed about this—not once), I get to decide how much of each product I will purchase, what colors they'll come in, and what sizes I want to carry. I can see what sells then adjust my future purchases accordingly. Sure, I probably won't be able to return unsold items to the wholesaler, but that's a risk I'll have to keep in mind when choosing said colors, sizes, and amounts.

If I start a business with LuLaRoe, however, I lose control of my ability to make wise fiscal choices right from the start because consultants don't even get to pick their sizes with their first order. Seriously! You get to pick a starter kit, and pre-selected products are shipped to you in varying sizes, styles, and colors. It's then your responsibility to earn a profit from those products without taking into account any variables like who your personal target market is, what markets are available in your area, and what styles appeal to those markets—all for a fantastically frightening startup cost of around $5,000 (at least).

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Why Is This a Problem?

Here's a quick reminder of what a $5,000 investment can buy you besides a boatload of ugly, overpriced clothing:

  • A semester of college
  • $5,500 in a few years via investment in a mutual fund
  • Raw land
  • A used car
  • A downpayment on a brand new car
  • Your property taxes for the next two years
  • The startup costs of a business that relies on your talents and interests (like photography or interior design)
  • Wholesale inventory that you have carefully curated after studying your market

4. Their Founders Are Not Transparent

In late 2018, one of LuLaRoe's founders, DeAnne Stidham, went live on Instagram. When consultants resorted to asking her when (or if) they'd receive refunds for merchandise and attempted to address other business concerns, Stidham's response was to name-call and block her "haters."

Why Is This a Problem?

Any time you're making a business investment you should expect transparency.

5. Their Clothing Is Overpriced and Low-Quality

Most direct-sales products seem overpriced compared to regular retail brands. I know this, but I also like the idea of supporting someone selling locally. However, LuLa's stuff just seems crazy expensive for what you're actually getting.

For instance, taking a look at my local LuLaRoe group, I could nab a very thin, brightly patterned, open-front cardigan for $55 plus shipping. For $75 and free 2-day shipping, I can get a soft, cotton-knit, open-front cardigan from Everlane in a pretty neutral gray and see the factory it's being produced in.

Why Is This a Problem?

Looking out for a pair of patterned leggings akin to LuLa but without the inflated price? Nowadays, you can find that for less than half the price of the direct sales company's offering with easy returns via Amazon.

LuLaRoe seemed like a cool opportunity for people who love fashion, social media, and making tons of money, but for many consultants, that dream did not become a reality.

LuLaRoe seemed like a cool opportunity for people who love fashion, social media, and making tons of money, but for many consultants, that dream did not become a reality.

The boldness that was once right on-trend isn't quite so popular these days, yet LuLaRoe continues to send consultants styles that are difficult to market.

6. Their Style Is Outdated

When LuLaRoe first popped up, everyone (including me) freaked out that you could get leggings thick enough to avoid any wardrobe malfunctions. While the patterns seemed cool at first, clothing trends quickly moved on to more neutral and minimalistic styles. Unfortunately, LuLaRoe consultants are usually sent only a handful of solid-colored pieces among the piles of zigzags, polka dots, and poorly-placed patterns that create the illusion of period stains (seriously, just Google "Lula Bloopers").

Why Is This a Problem?

The boldness that was once right on-trend isn't quite so popular these days, yet LuLaRoe continues to send consultants styles that are difficult to market. Look, I'm not saying that there aren't a lot of cute styles to be found with LuLaRoe—there are. But for the consultant, it can be difficult to create real-world outfits out of a single batch of product. In a home-based business, time really is money, and the more time you spend trying to sell a product, the less money you're really making.

7. Their Business Model Isn't Sustainable

Why do people purchase LuLaRoe? Is it for the quality? Maybe. Or maybe it's for the perceived quality (the garments are now manufactured the same way every other pair of leggings or tunic top is manufactured—usually overseas). Is it for the price? No. The prices are high. Okay then, is it for the styles? Also maybe. But most major retailers are now offering similar styles at cheaper prices.

From what I can see, people buy LuLaRoe because of FOMO (fear of missing out). The whole "we only produce this many pieces of this pattern" thing creates a lot of urgency in consumers. OMG, what if I never get to see that splashy poppy print on my legs if I don't buy this pair of $25 leggings plus $8 in shipping right this very minute?

Why Is This a Problem?

FOMO is not sustainable when it comes to retail. Fight me on it if you want, but I'll just give you two words: Beanie. Babies. Just like my parents and I began to realize that Beanie Babies were glorified crane-machine prizes, consumers will eventually realize that LuLaRoe clothing snags, tears, and pills just like any of the lesser-priced items in their closets. After a while—I'm making an educated guess here—many will stop being repeat LuLa customers.

8. They Rely on Consultants—Not Customers—for Income

So where are all of LuLaRoe's customers? They're the consultants themselves since LuLaRoe doesn't get paid for the sales that consultants make. If my sister-in-law, my mom, and I each decide to start our own LuLaRoe business, that's at least $15,000 for the company.

Why Is This a Problem?

Let's say I go crazy and decide I'm going to buy a bunch of inventory because I just know that the more I have, the more I can move, and the more I move, the more I'll make, so I take out a loan and invest another $3,500 in inventory. That's $18,500 dollars for LuLaRoe! Let's say that my mom, my sister-in-law, and I all bomb out and we sell nothing. That is still almost $20,000 for LuLaRoe - and a lot of regret for me.

Waiting for a response from LuLaRoe on whether you'll receive any kind of refund? According to other consultants on the internet, you'll probably be waiting a while.

Waiting for a response from LuLaRoe on whether you'll receive any kind of refund? According to other consultants on the internet, you'll probably be waiting a while.

9. The Market Is Oversaturated

Everyone else and their mother (and their sister-in-law) is selling LuLaRoe. And all of those consultants equate to thousands of additional dollars in LuLaRoe's pockets. The company's once white-hot image of cute, rare clothes no longer holds up to scrutiny.

All I have to do is search LuLaRoe on Facebook, and I can find a dozen consultants in a 50-mile radius, giving me the ability to hunt down the exact patterns, styles, and sizes I want—just like I can do when I shop on H&

Why Is This a Problem?

LuLaRoe's once-genius business model of supply-and-demand has backfired on consultants and bored the rest of us.

10. Consultants Are Punished for Marketing Their Products

So, let's say we want to return some inventory because 70% of it didn't sell and we need to get out from under the debt. Well, guess what? We're now at LuLaRoe's mercy as to whether the packages that were opened are considered "damaged" because we opened them to market our product.

Why Is This a Problem?

Essentially, LuLaRoe punishes business owners for doing exactly what a business owner should do—market their products. That's not a business model; that's a scam.

Vice Presents: Leaving LuLaRoe

Is LuLaRoe a Multi-Level Marketing Scam?

Have you ever sold LuLaRoe? If, not, are you thinking about it? Do you love it? Do you hate it? I want to know! Do you think the business is a pyramid scheme or multi-level marketing scam? Do you have thoughts about the legal trouble they've gotten in? Comment below and feel free to use a fake name to remain anonymous. I want to hear from you!

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

Question: I shamefully have spent over 10 grand over the years on LuLaRoe. Almost cost me my marriage. Now I sit here with all this stuff. I would love to know how in the world you can sell unsold LuLaRoe inventory?

Answer: You can try to consign it - I see quite a bit of it on ThredUp and Swap. Unfortunately, I don't think you'll make your investment back but you can at least try to recover some of it as you move forward and away from LuLaRoe.

Question: Is Lularoe being sued?

Answer: Yes, as of December 2018, LuLaRoe and it's owners, Mark and DeAnne Stidham are being sued by their main supplier, Providence Industries. Providence Industries claims that they have reason to believe that the Stidham's are not only unwilling, but unable to pay their debts, while the Stidham's retort that the lawsuit is nothing more than an attempt to make LuLaRoe look bad.

For now, the outcome of the lawsuit is unresolved.

© 2017 Kierstin Gunsberg


Brenda Richardson on July 12, 2020:

Anyone looking to sell me Tall and Curvy at $5.00 per pants, plus actual shipping I would be interested. Email me I would be interested in purchasing several pairs. I would like to pick see pictures first email me at I would pay by credit card. A friend of mine introduced me to the pants from a friend that was looking to off-load her stock. I paid $ per pair plus freight and was very happy. I am an honest yoga teacher. I completely believe in Karma. Thank you xo

no name on March 09, 2020:

I was so pissed that no one wanted to buy ANY of my inventory. All

I got was super ugly crap. I sold maybe 10 pairs of leggings and like 2 shirts. I threw the rest of my inventory in a dumpster because I was so pissed and I didn't even want to look at it. (yes I know it was wasteful)

Teri on November 03, 2019:

I did for a year and have been out a year. Best decision to leave. I made my money back and sold most of my left over inventory at a loss to make a minimal amount of money. But the truth is, LLR bullies you into believing that the only way to make money is to spend thousands every week. It’s a pathetic plan and one I never bought into. When I sold 30 pieces I ordered 30. That was the only way I made my money back. The moment I told my upline manager I wouldn’t buy every week I never heard from her again. Poor poor leadership.

erinshelby from United States on September 01, 2019:

No returns? I don't get how that works. Some of the clothes are cute... but I heard that some of the leggings would rip after never being worn! Now Avon, I could tell you a lot about that...

Ex Consultant on August 23, 2019:

I got OUT about a year ago... best decision I’ve ever made. LLR was nothing but lies and empty promises. It’s pretty disgusting how they sold men and women on the American Dream and then they crushed each and everyone of their consultants lives. Family’s went belly up because they were sold that this was a fantastic opportunity. Moms and Dads missed epic moments of their children’s lives, all work, no play and a-hole uplines that only wanted to talk about rainbows and puppy dogs. The ones at the top of the food chains were rude nasty women that would stop you in your tracks of you even spoke one word of the truth. They fixed product launches for their top consultants. The rich got richer, while the poor got poorer. It’s just plain disgusting. Not only have they managed to piss off and screw about 40K-50k consultants, they have also screwed their suppliers to the tune of millions of dollars. They are a scum bag couple that lost and went bankrupt with several business prior to LLR. I pray every day that they get exactly why they deserve. Oh and you can shove your ugly prints where the sun don’t shine Deanna and Mark!

Brianne McMurray on July 23, 2019:

Biggest mistake of my life. Once you hit the “cancel my business” button, all those “life long friendships” and support are gone. I currently have about 45,000 wholesale inventory. I don’t even want to sell it. It’s so much work for so little money, I’d rather “devalue” the brand by donating it.

Anon on July 23, 2019:

No one with any fashion sense is wearing LLR. The pieces are shapeless and poorly designed. (Ask customers about how the sleeves don't fit.) I was at a seminar last week, in a class about clothing alterations, and only ONE retail company was brought up as an example of poor pattern design: LLR.

Kary Gatto on July 12, 2019:

When I couldn't sell anymore of my inventory (even at $5 a piece), the remaining garbage was donated to a local thrift store. Signing on with LuLaRoe was the biggest mistake of my life.

no name on May 12, 2019:

Lularoe is a company that grew very fast, yes it has been put to a very big and fast track test and they are trying to correct procedures to help retailers. Why would they purposely do things to make them and customers mad and get a bad rep if that's how they make money? Makes no sense. What makes sense is that you are in control of your money and if you decide to buy a pair of name brand Nike's...that's ok but someone else's fault because you bought too much Lularoe because you liked it? Also, not everyone is business ready, but this is a business not a hobby and you are in control of your business decisions. Like any other big decisions do you take in all the information before making it or do you listen to someone else and just do it? I am a retail for a year and a half and work a 40 hour a week job as well. Am i rich from Am I making money? I am getting back as much as i put into it. It give's me an outlet to express myself, got me out of my comfort zone of black, nuetrals, jeans and hoodies and helped me meet new people and spend more time with local friends! So I believe we can all look at it differently for different reasons but in the end we make our decisions...we take chances, we spend money, we try to find happiness and the list goes on & on but we really shouldn't make blame on someone else, we should be taking responsibility for our decisions...even if some may be wrong, poor or regretted. We should learn from it and move forward...If everyone knew the right and perfect way to live we would all be the same and boring!!

Leisure suit larry on May 04, 2019:

The lularoe model is flawed from the beginning, I hate to admit that even after considering: you get now choice in prints or sizes and have no means to select colors, patterns or themes to make your business a success; using only Facebook as a online sales vehicle... come on the red flags should be popping up in spades about now; it’s like a pyramid scheme where you prey on friends to become consultants to boost your sponsors cash flow and so on. It’s a lot of work, these clothes do not sell themselves so be prepared to open much awaited shipments to find you have crappy prints that not too many people want to wear, taking pictures and posting, by props to display the goods and posting to groups or face book repeatedly.... even if you are selling your making less than minimum wage? Then there are all the goodies to make selling easier. Thinks like postage machines, mailers, lights, and racks... come on people do not repeat the mistakes of many who saw easy $$$$ peddling this clothing line. Then they bestow the title of consultant????? What are you consulting on when you can even select what your peddling.

Kierstin Gunsberg (author) from Traverse City, Michigan on March 18, 2019:

Sarah, awesome comment! I think the LuLaRoe stuff seems pretty cozy too but I'm with you - unless I can get it at a discount, I won't invest in it. I feel badly for the sellers like your friend who are clearly hardworking and just trying to provide for their families. I think the business model could've worked long term if the prices were more reasonable for the market and taking into account the actual quality of the clothing.

Also, sellers should have been able to pick which items they bought. There's no other business that relies on their seller to purchase products they've never seen before. Not fair!

Sarah on March 15, 2019:

I don't sell Lularoe, and haven't considered selling it. I did look up some startup costs and the business model when an acquaintance was considering selling it, and realized it was a very bad idea. But I didn't message her and didn't see her for a while, so by the time I saw her again she was already selling it. To her credit she really works hard at it, and has paid off her initial inventory costs a year and a half or two later. (And she has a lot of inventory, so if it sells and she slows down on buying she might stand a chance to actually make some money - but at the cost of time. I can't imagine spending that much time and effort just to break even.)

Anyways, I do actually own a lot of Lularoe. I shop the going out of business sales so have grabbed some shirts at $5 shipped and Amelias for $10, etc.

But the quality of most garment types is pretty low. I feel bad for those paying full price - even if you take care of them more carefully than polyester spandex clothing should ever need, most garments will either pill or snag very quickly. I've found the Lolas and Amelias hold up the best, wheras the thin shirts and Julias and kid dresses generally wear out the fastest. Most item types are basic patterns and poor quality fabric (I snagged a cute unicorn Harvey for $20, but unlike ever other jean jacket I've ever owned the thing fuzzes and catches every speck of dust.) But I do like the Amelias and Lolas - comfy and cute.

Anonymous on February 26, 2019:

I started LuLaRoe with my sister because we were proud the clothes were not only made from remnant fabric (which I’ve never been able to find proven anywhere) but they were proudly made in the US. Except that everything about the company is a lie. Everything in this article is true. I can only add that:

They don’t care about their consultants.

They only care about themselves (see holiday leggings 2017 with actual prints of themselves. Themselves!!! I can’t make this up!).

They don’t have the first clue about fashion vs. clothes. (Mormon style lines are not chic).

They don’t care if you can’t sell their ugly prints. They’d rather defend their prints than your ability to succeed.

They make false promises to get you to join.

They make their higher up people clamp down when asked tough questions.

They openly favor certain consultants while being in complete denial about how obvious it is.

Basically. They want your money. And they are going to give you the ugliest shit in return for it. U. G. L. Y.



Anonymous on February 21, 2019:

Purchased a skirt and long sleeve t-shirt. Product is crap. Print on skirt fabric faded with first wash. T-shirt is clingy, rough fabric. Both are made of cheap grade fabric for which I paid $75 for the skirt and over $30 for the blouse. Will not buy again

LulaNo on January 17, 2019:

Their business model is terrible. You can't select your own inventory or just take orders for what customers really want? I like some of the products but at this point, most of what I own was purchased second hand or from a GOOB sale. I dislike the emotional blackmail many consultants use to get you to buy, buy, and buy some more. Some even use illegal giveaways based on purchasing something. Laws governing sweepstakes strictly forbid requiring a purchase to enter a drawing. Shipping costs heavily inflate the purchase price. It seems more are getting out than getting in. I know many who are stuck with ugly inventory that won't sell. It's a boondoggle and I predict it's days are numbered....Dad has pretty much run its course and a lot of customers (like me) are wising up.

Kierstin Gunsberg (author) from Traverse City, Michigan on December 17, 2018:

Active Retailer, thanks for the perspective! :)

Active Retailer on December 17, 2018:

Its always interesting to me how many made so much money from this company are the first to badmouth it. This "LLR Going out of Business nonsense gets brought up with every big lawsuit and there's always someone to hate on the brand. My "Sponsor" Bragged about being able to make 16000 her first month without trying, yet goes on and on about how the brand screwed her. Not sure how, she has scency and Party Light and goodness knows what other MLM products she can not sell filling her garage, but the one company she made money off is the one she badmouths the most. And if you don't bad mouth LLR or its founders and make fun of her style then your just "drinking the kool aid." Or maybe I just don't hold my up line or he founders responsible for my decision making. Nor do I believe every time a BILLION dollar company gets sued for a few million it means they are going OOB, or because they wont buy back prints you bough for cheap from someone else that they have screwed you. Sorry, its a big investment that if you can't afford don't make. Walmart wants me to buy a lot of junk too but I don't buy what I am not PERSONALLY willing to and I hold MYSELF accountable for my decisions. If I take bad advice its still MY decision. Nothing bad about LLR, and all the nonsense of holes, I have had ONE customer have an issue in 2 years of selling. ONE. That's and extremely low defect rate. I have favorite leggings I have worn and washed near weekly since before I was a consultant. They are faded but quality is there. I have Jeans from one of the stores you mentioned above as high quality, JEANS, that split down the entire seam exposing my underwear in far less time. They wouldn't even respond to my email about it let alone offer any resolution after 6 months of wear. If you cant afford to loose $5000 (or now $2500) just don't do it. most people can't afford that and never should have tried.

Dee dee on April 30, 2018:

I like lularoe. It is way overpriced and after buying about $300 worth I think I’m over it. I found a “buttery soft” pair of leggings that feel just as good as Lula but were 6.99

Nikki Pilia on April 18, 2018:

My coworker introduced me to LuLaRoe in the fall of 2015. I fell in love with the buttery soft leggings and funky prints. She immediately started building a team and by January of 2017 she put in her teaching resignation later. To me, I thought that was crazy. I started asking her questions and I thought that I could sell some clothing to make extra money on the side. My end game was never to quit teaching, but to pay off my car early. I submitted my paperwork on Leapday 2/29/16 and patiently waited in the 'Queue' for my phone call on May 4th, 2016. I told my sponsor that I was going to give it 6 months. I personally never carry a balance on a credit and am not considered a 'risk taker' so I searched for a card with 14 months at 0% interest so I would give myself time to recoup the money. My negative experiences with LuLaRoe mostly deal with how the company is being run and extreme lack of communication between departments. First, as I was waiting in the 'queue' for weeks on end we were given choices of onboarding packages which ranged from $4800 to over $9000 with a 'free bonus item'. When I onboarded I chose package 2 and received 'free' Classic tees. Without notice, within several days of my call,LuLaRoe announced from here on out consultants have to buy package X and the only free items would be the poorly selling men's Patrick Tees. I had several friends now stuck with that option and it was more money than what they were planning on spending. LuLaRoe does encourage consultants to invest back into their inventory. I knew early on that I was not going to go into debt for this. I carried limited inventory with about 8 items per size. It worked out pretty well; and I have a great local community of retailers where we would swap 'older' inventory every month so we could have 'new inventory' without buying it. LuLaRoe does encourage it's retailers to build a team; that was never on my agenda. However, my sponsor rose through the ranks quickly to the point where her bonus checks were several grand a month. Initially LuLaRoe based their bonus checks based on buying..not selling. All my sponsor had to do was sit back and maintain the minimum order to collect her check each month. LuLaRoe did switch to sales based bonus checks this past spring. Throughout my time as a consultant I placed 11 orders. Of those 11 only 1 was actually correct. LuLaRoe prides themselves on 'hand selecting' pieces...obviously they can't count. I would call to get my orders corrected; consultants don't lie when they say they are on hold for 2+hrs and then have the phone drop the call. I would then get random deliveries for 2 Randys or 1 Cassie. To this day, I have no idea how many pieces that I was shorted. Specialty orders were also a nightmare. They would announce on a call that they would go live in a couple hours. This would create panic and cause the ordering system to crash. If a consultant was lucky enough to place a specialty order sometimes the items wouldn't ring up bundled, they would be double charged, still receive an incorrect order or one with a backorder slip. In the agreement that I signed, it said that items would be shipped from 3-5 business days after my order...shipping times were consistently getting slower and slower. As someone living on the East Coast some orders took 3 weeks to get to my door, which is ridiculous. The returns for damages process also changed various times during my several months. First you had to send back the item; then you could keep the item and take a picture and email it in; then it was fill out a formstack...If you tried to call to see that status of your damage report they would tell you to fill out another email. By December of 2016 I realized that I was putting in way too much time and effort to continue selling LuLaRoe. I started the resignation process in January 2017, but again that took 3 months! From several phone calls and emails; the departments to talk to each other. I never received an estimate on how much I was getting back...honestly, my check was for more than I was anticipating so I didn't complain. I am just glad to be done with that headache. After I started my resignation process, LuLaRoe basically decided to become a 'closed bank'. They said that they would be running a 'hard credit' pull on all consultants---that alone I would never have agreed to. All consultants would have to put new purchases on the LuLaRoe issued debit card. All deposits would go into a LuLaRoe account. If you wanted the money transferred to your personal account there was now fee for each transaction. I am surprised that there have not been more voices speaking out on the business transgressions. As for my former sponsor...she is now back to teaching.

Notsaying on March 29, 2018:

I am so fed up with LULAROE, they started accepting returns for people going out of buisness but it is taking over 4 months to receive a check after they go through your inventory and confirm. And they have no idea when your check will be cut just same generic messages saying they process in order received. I had to pay 800 to ship my items back and have been waiting for months and months for my return check.

Danielle on March 28, 2018:

I had so many friends investing in LuLaRoe. When I saw the business model though I felt bad for my friends because they were so enthusiastic about it, but they were dumping LuLaRoe with so much hard earned money in hopes of a better opportunity, but one by one they all eventually went out of business. LuLaRoe could be so much better to it’s consultants, but it specifically chooses not to because it’s only invested in making money, it doesn’t actually care about the consultants and that business model has always been destined to fail. It bothers me how many women they have scammed. Also making it available to so many women without requiring any permits or licenses, it was only a matter of time where the painted picture would draw thousands of women in to become consultants with the idea of owning their own “lucrative” business which is the exact reason buying wholesale is not available to everyone (you have to have permits etc) because if everyone has access to it, why even go to the stores anymore? No retail business would make any money

Kierstin Gunsberg (author) from Traverse City, Michigan on March 09, 2018:

Morgan, eight months with no resolution is terrible! Thanks for sharing your story though, because I think that as people research companies to join, this information will help them to steer clear of LuLaRoe.

I can understand why you feel badly about this situation and feel like it's your fault but if you take a minute to put it in perspective it's clear that your motivation was good and you invested in this company thinking it would benefit your family. In the grand scheme of things, there are so many truly awful things you could put your family through from a place of selfishness but this isn't one of them. You are as much a victim to LuLaRoe's bad practices as your family is and hopefully, going forward, you can see that.

Morgan Lane on March 08, 2018:

I was one of those retailers who exited prior to the policy reversal. Guess what? Didn’t matter. They drug their feet in processing my resignation so I got screwed with the old buy back policy. So here’s a timeline- resigned in August 2017, they finally accepted my resignation around THANKSGIVING! I immediately sent my return inventory back first week of December. That alone cost me $300 in shipping. They didn’t “receive” for 8 more weeks even though they had possession of it. Jan 29th I got an email confirming my return and that all items were approved and my case was being sent to accounting to cut my check.....that was 5 weeks ago. At this point it’s feeling more like grand theft under false pretenses and I’m wondering if I’ll ever get a refund check. Worst decision I ever made. I am so ashamed and embarrassed I put my family through this nightmare.

AZAlicia on March 03, 2018:

You hit the nail on the head with every reason, I have not purchased many Lula items... I saw the scam when I first researched and I researched a lot. They disgusted me.

Kierstin Gunsberg (author) from Traverse City, Michigan on February 21, 2018:

Yikes, Single Wing! That's too bad to hear that the quality of the outfit was so low. I do know a few years back I had friends wearing LR and their stuff did feel very soft and high quality but as I mentioned in this article, that's changed. I hope the consultant you were purchasing from has found a better venture and that you can find some higher quality comfy clothes for your next vacay!

Single wing on February 21, 2018:

I bought several outfits ...solid with matching prints no mixing of prints...just wore one while on vacation at beach....First wear the long shirt( I forget the name but it covers the butt) it pills up like crazy....never worn before and now feels like a really old shirt...also the lady I bought from is OUT ...she closed up before the end of 2017..

Kierstin Gunsberg (author) from Traverse City, Michigan on January 18, 2018:

William, I just checked Ink Sewn out and it looks very promising! I love that they drop ship, it makes no sense to carry inventory, and I love that the products are produced in the U.S. That makes the price WORTH it.

Kierstin Gunsberg (author) from Traverse City, Michigan on December 30, 2017:

Yikes, Joanne! That's terrible! I wonder if you could sell them on Ebay since they still have tags and make back part of your investment.

Joanne Wolftail on December 30, 2017:

I am unfortunately a Customer of Lularoe, i have spent Thousands of dollars with them From the very beginning of the Orders I made (in the last week of September), things were a constant mix-up. I received 2 or 3 of just one design that I wanted, so basically, they stole from me right at the start. Most LLR Consultants that I know of pressure and bully you into ordering from them, causing incredible debt. They just don't care. I have ordered some of LLR most envied pieces from their Elegant Collection. I can go on forever with stories about what I've been put thru, finally ordering only because I felt pressured. Lets put it this way, there is Thousands of dollars of LLR in my Closet that I don't really want. All of those Elegant pieces still have the tags on them, I was so disgusted when I received them that I just opened up the packages and hung them up, tags still on.

No name on December 15, 2017:

Worst decision I ever made was to become a consultant and put my family in a debit I didn’t make back. Company (LLR) doesn’t have much concern for anything except their wallets.

Tired Mommy on October 07, 2017:

I officially was "released" as a consultant about 2 weeks ago. I was one of those people who startedthe exit process and then gotthe lovely policy change surprise

I'm business minded, I get why they changed. They could have handled themselves better and treated us like a person.

Lularoe was a huge boost to my confidence pre and post partum. I lost all my baby weight after 2 kids (in 3 Years) and overtime I fit into my old clothes. Clothes from Banan, free people, etc. (clothe si should say I could afford before having kids

FlourishAnyway from USA on September 19, 2017:

A friend is spamming me with this ugly stuff on FB and I've never purchased any of I because I just don get the appeal. I thought I was the only one who failed to catch the LuLa bug.

Kierstin Gunsberg (author) from Traverse City, Michigan on September 19, 2017:

Nice! Smart move, Linda! Especially after I was post-partum with my second babe in just as many years, I saw the appeal of LuLaRoe - it looked comfy, loose where I wanted it to be, and even though I wasn't a fan of a lot of the prints I could see pairing some of them with solids. So, when I was building my post-partum wardrobe I looked into buying some t's and leggings there because my friend had a pair and they really were super soft, but $200 would have bought me about 3 outfits and I ended up just going to my usual stores and grabbing all of their sale leggings and tunics at a fraction of the cost of LuLaRoe. Those tunics and leggings got spit up on, pooped on, peed on - you get it - I had to toss a lot of it a year later and I didn't bat a lash because my investment was minimal.

I appreciate a great direct sales company, but their model is sneaky and from what I've heard, their products aren't what they used to be.

Linda Courtney from Bloomsburg, PA on September 19, 2017:

I always love to find LulaRoe in the thrift stores for $1 or $2. I know I can turn around and sell them on Ebay for $20 or $30 easy. I always wondered why though. The clothes are so basic and ugly to me. I think people are just buying them because somehow the name became hot. Who cares what the clothes look like? Always wondered how something like that could last. No, I would never spend $5K to direct sell them. I will still pick them up at thrift stores for cheap and resell though.

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