Are MLMs Legal? Companies Like LuLaRoe Have Come Under Fire

thatIn February 2021, LuLaRoe was ordered to pay $4.75 million to distributors in the state of Washington in a case which claimed the company is a pyramid scheme.

Before that, in November 2017, amidst public criticism, LuLaRoe co-founder Mark Stidham told CBS News, “We have a multi-billion dollar business. It was not built by tricking people into giving us their money.”

His wife and LuLaRoe co-founder, DeAnne Brady Stidham, added, “I often say LuLaRoe works for you, you don’t work for LuLaRoe. That means you get to decide on your time, and you get to decide what works best for you.”

Today, this particular MLM is still in business.

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