While reading through “LuLaRoe Was Little More than a Scam, a Washington State Lawsuit Claims” I became intrigued by the formation of the so-called “pyramid scheme”. LuLaRoe is a clothing company that markets its merchandise through social influencers. The central company is responsible for manufacturing and distributing articles of clothing and training brand ambassadors. LuLaRoe attracts online influences– Often young stay at home mothers– through promises of high profits and offering refunds for unsold products. These individuals were sold a dream of financial freedom through at home entrepreneurship. LuLaRoe specifically preyed on individuals who did not feel productive and were seeking a remote way to build up their savings. The central company earned money through its enormous onboarding costs that ranged in the upper thousands of dollars. Social influencers were encouraged to find a source of funds by any means necessary to start up their own business, leaning on loans or crowdfunding. Because it was an entrepreneurial venture, it was up to the individual retailers to make returns on the packages of clothing they shipped. However, LuLaRoe gave little agency to the individuals when it came to selecting articles of clothing and certain designs to sell, putting their retailers at a disadvantage. Eventually, the company got rid of its guarantee to buy back all the unsold merchandise from retailers, leaving individuals stranded. Ultimately, the dream sold by LuLaRoe proved to be a facade for many people across the United States. A number of individuals ended up in significant debt and piles of unsold clothes on their hands. 

LuLaRoe is just another example of pyramid schemes marketed to individuals looking to make genuine profits through entrepreneurship. Everywhere around the world, people are trying to get a leg up and are often willing to do whatever it takes to support their families. This emphasizes the need to research companies before paying costly onboarding fees or recommending products that you have no knowledge of. Even here at NCSU, many schemes exist targeting college students who seek any way to make a quick buck through a flexible schedule. Often, these jobs are in the form of selling some product or telemarketing.

Jones, Charisse. “LuLaRoe Was Little More than a Scam, a Washington State Lawsuit Claims.” USA TODAY, https://www.usatoday.com/story/money/2019/01/28/lularoe-pyramid-scheme-duped-consumers-washington-suit-says/2700412002/. Accessed 16 Oct. 2025.