While reading “LuLaRoe was more than a scam, a Washington State lawsuit claims,” I learned that LuLaRoe operated as a pyramid scheme. The company persuaded customers to purchase large quantities of clothing in bulk, which they were expected to resell individually. They promised refunds for unsold items but often failed to deliver, leaving many people in serious financial trouble. There were also several other questionable actions by the company. This article stood out to me because I actually knew people who sold LuLaRoe. My mom had several friends involved in it, and she used to buy clothes from them. I remember owning a ton of their pieces. My mom’s friends would order large shipments and turn rooms in their houses into makeshift boutiques. I think that sense of owning a “business” is what drew people in. Before reading this, I had no idea LuLaRoe had such unethical business practices.

It reminded me of the article we read about the scooter company. That situation was also a pyramid-style setup that caused similar financial problems for people involved. In both cases, no one believed it was a scam at first. The LuLaRoe case seemed smaller in scale, but the damage still felt significant. Reading this made me realize how many companies operate like pyramid schemes without people noticing. There are countless ways individuals can be deceived into losing money, and it’s hard to tell what’s legitimate anymore.

Works Cited
Jones, Charisse. “LuLaRoe Was Little More than a Scam, a Washington State Lawsuit Claims.” USA Today, Gannett Satellite Information Network, 29 Jan. 2019, www.usatoday.com/story/money/2019/01/28/lularoe-pyramid-scheme-duped-consumers-washington-suit-says/2700412002/.